Westdeutsche ImmobilienBank (Westimmo) saw net interest income rise 3% in the first six months of the year to EUR 86.9 mln compared with EUR 84.4 mln in the same year-earlier period. Operating profit rose 16% to EUR 11 mln.
Westdeutsche ImmobilienBank (Westimmo) saw net interest income rise 3% in the first six months of the year to EUR 86.9 mln compared with EUR 84.4 mln in the same year-earlier period. Operating profit rose 16% to EUR 11 mln.
However, the IFRS consolidated pre-tax result fell 29% to EUR 42.8 mln over the period while consolidated annual net profit fell to EUR 30.8 mln from EUR 51 mln. The bank attributed the decline primarily to a high credit risk provision for commercial real estate loans of EUR 29.3 mln compared with EUR 10 mln the previous year. It added, however, that the higher risk provision is moderate by market standards.
The bank boosted its new commercial real estate lending over the period by 3.3% to EUR 3.1 bn largely reflecting expansion of business with institutional German investors. While the volume of new financing in France and the US was steady compared to last year, it dropped in Central and Eastern Europe.
Management expects the volume of new business to reach about EUR 6 bn by the year-end.
The September issue of PropertyEU contains an interview with Claus-Jurgen Cohausz, chief origination officer of Westimmo as part of our annual ranking of Top Real Estate Financiers. Click on the link below to subscribe:
