At BayernLB, business is going better than expected.
In view of the tailwind from the first half of the year, confidence is now growing at the Landesbank.
Munich - After unexpectedly good business in the first half of the year, BayernLB is increasing its profit forecast.
In the first half of the year, the Landesbank achieved a net profit of 248 million euros, almost two and a half times as much as in the first half of 2020. The pre-tax profit tripled from 158 to 485 million euros.
CEO Stephan Winkelmeier said on Thursday that the board was satisfied.
For this year, BayernLB, which is owned by the Free State and the Bavarian savings banks, is now forecasting pre-tax earnings of EUR 500 million to EUR 700 million, which is also a very strong increase.
Originally, the management had expected 200 million to 400 million.
BayernLB: Direct bank DKB becomes a profit machine
A considerable part of the profits is not generated by BayernLB as such, but by the subsidiary DKB as the most important pillar.
The online bank alone contributed EUR 267 million in pre-tax profits.
In Munich's core bank, however, things also went well, both in real estate and in corporate and financial market business.
The first half of 2020 was very difficult for BayernLB, partly because of the collapse in the financial markets at the beginning of the pandemic. In the meantime, the board of directors no longer fears that customers will not be able to repay their loans to a significant extent. After a substantial increase in risk provisioning in the first half of 2020, this has now been reduced again.
(dpa)