HypoVereinsbank abandons topside of full-year forecast

5th August 2004, Comments 0 comments

5 August 2004 , MUNICH - HypoVereinsbank, Germany's second-largest business bank, abandoned Tuesday the top side of its full-year forecast after issuing second-quarter figures that showed net income nearly tripling from a year ago to EUR 155 million. Just hours after chief executive Dieter Rampl said a forecast of operating profit of EUR 1.4 to EUR 1.7 billion for 2004 remained unchanged, the bank abandoned the high end of that prediction. The upper side was no longer achievable, conceded finance director

5 August 2004

MUNICH - HypoVereinsbank, Germany's second-largest business bank, abandoned Tuesday the top side of its full-year forecast after issuing second-quarter figures that showed net income nearly tripling from a year ago to EUR 155 million.

Just hours after chief executive Dieter Rampl said a forecast of operating profit of EUR 1.4 to EUR 1.7 billion for 2004 remained unchanged, the bank abandoned the high end of that prediction.

The upper side was no longer achievable, conceded finance director Wolfgang Sprissler in Munich. He said the bank still believed it would reach the minimum figure, EUR 1.4 billion.

The second-quarter net was largely helped by disposals of assets, including stakes in beverages group Brau und Brunnen and energy group E.ON.

A year earlier, net income had been just EUR 53 million as the bank struggled to cope with a massive fall in the value of its assets.

Although the figures fell somewhat short of analysts' expectations, HVB stock initially traded higher Thursday, spurting 3.65 percent to EUR 13.35.

One Frankfurt trader said investors had been expecting worse after disappointing second-quarter figures from Deutsche Bank.

HVB made some progress in its core business, with total operating revenues increased to EUR 2.35 billion and net interest income boosted to EIR 1.45 billion (a gain of 13 percent compared to the first quarter), but trading profit declined to EUR 182 million.

DPA

Subject: German news

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