With a substantial increase in its net income from € 10 million to € 40 million, the Asset Management & Financial Services division returned convincing performance, largely due to an increase in commission income in the securities business.
All of the division's subsidiaries improved on their prior-year results. FRANKFURT-TRUST Investment-Gesellschaft mbH has established itself as one of the leading German asset management companies on the mutual fund market. Together with FRANKFURT-TRUST Invest Luxemburg and Financière Atlas S.A., FRANKFURT-TRUST Investment-Gesellschaft mbH manages assets totalling € 14.3 billion (previous year € 12.9 billion) distributed among 157 funds.
Frankfurter Fondsbank GmbH increased the fund volume under its management from € 11.1 billion in the previous year to € 14.6 billion, meaning that it can also look back on a successful financial year. BHF-BANK further expanded its market position with respect to custody and derivatives services in 2006, too: the volume of assets under custody rose by € 78.8 billion to € 280.9 billion.
The Private Banking division further enhanced its market position and considerably expanded its earnings by 41% to € 33 million. A substantial increase in income by 17% to € 96 million played a key role in this encouraging development. This was due primarily to net commission income from asset management and the securities business, as well as business with alternative investments. Assets under management also received a considerable boost in the reporting year, largely with respect to the BHF-TRUST and the family office. The opening of a representative office in Abu Dhabi (United Arab Emirates), the expansion of BHF-BANK (Schweiz) and the partnership with Client Associates, a leading family office in India, further increased the international activities of the Private Banking division.
The Financial Markets division reported total income of € 99 million in 2006, allowing the division to maintain the positive earnings level from the prior year of € 42 million. As a key participant on the currency, equity and interest rate markets, BHF-BANK once again ranked among the most successful issuers of structured products in the reporting year. In terms of trading volume in reverse convertibles, the bank is still the number two German provider.
| 2006 | Asset Management | Private Banking | Corporates | Financial Markets | Others/ Consolidation | BHF (Total) |
|---|---|---|---|---|---|---|
| € M | € M | € M | € M | € M | € M | |
| Income | 112 | 96 | 56 | 99 | 32 | 395 |
| Expenses | -72 | -63 | -33 | -57 | -74 | -299 |
| Risk costs | – | – | – | – | 11 | 11 |
| Profit/(loss) from operating activities | 40 | 33 | 23 | 42 | -31 | 107 |
| Cost/income ratio | 65.8% | 65.7% | 59.1% | 60.7% | – | 83.3% |
| 2005 | Asset Management | Private Banking | Corporates | Financial Markets | Others/ Consolidation | BHF (Total) |
|---|---|---|---|---|---|---|
| € M | € M | € M | € M | € M | € M | |
| Income | 99 | 82 | 67 | 100 | 30 | 378 |
| Expenses | -69 | -59 | -38 | -58 | -64 | -288 |
| Risk costs | – | – | – | – | 2 | 2 |
| Profit/(loss) from operating activities | 30 | 23 | 29 | 42 | -32 | 92 |
| Cost/income ratio | 73.8% | 71.6% | 59.7% | 71.0% | – | 81.7% |
With income of € 56 million from the corporate client business, the Corporates area generated earnings of around € 23 million, as against € 29 million in the previous year. The continued risk optimisation within the framework of the conservative credit risk policy prompted an expected decline in interest and commission business. As a result, the area did not have to make any allocations to the provision for loan losses in 2006 either.
Top
