IKB Deutsche Industriebank AG / DE0008063306

  New business volume significantly increased to €1.3 billion (prior year: €1.0 billion) Profit before taxes of €36 million, above prior year (€32 million) Return on equity after tax at 10.3% (prior year: 7.6%) Administrative expenses of €77 million, driven by one-off effects from the IT service provider change and higher personnel costs (prior year: €66 million)  Low risk provisions with net releases of €4 million (prior year: net risk provisions of €13 million) and a reduced non-performing asset ratio of 2.0% (31 December 2024: 2.3%) Common Equity Tier 1 ratio (transitional CET 1) stable at 19.3% (31 December 2024: 19.2%) Leverage ratio unchanged at 7.6% IKB-CEO Dr Michael Wiedmann: ”With new business volume of €1.3 billion in the first half of 2025, we are on track to achieve our goals. More than 90% of new lending business is rated investment grade.”   [Düsseldorf, August 15, 2025] IKB Deutsche Industriebank AG has  successfully completed the first half of the 2025 financial year and significantly increased both its profit before taxes and its new business volume in a challenging environment. Profit before taxes for H1 2025 amounted to €36 million an increase to the prior-year figure of €32 million. New business volume rose by 30% from €1.0 billion in the same period last year to €1.3 billion, meeting the target range. Increased fee income driven by increased volumes Net interest income for the period was €91 million (prior year: €107 million). The decline is primarily attributable to interest rate and volume-driven reductions in net interest income, especially in Q4 2024. Fee income grew to €11 million (prior year: €7 million), driven by higher fee income from capital market transactions. Administrative expenses stood at €77 million (prior year: €66 million). Personnel expenses totaled €40 million (prior year: €37 million), while other administrative expenses amounted to €37 million (prior year: €29 million). The increase in operating expenses is largely due to one-off effects (€8 million) related to the change of the IT service provider, as well as higher personnel costs following salary increases and an increase in average headcount compared to the prior-year period. Risk provisioning resulted in a net release of €4 million in H1 2025 (prior year: net risk provision of €13 million). Across the portfolio, no adverse credit migrations were observed as a result of the selective lending policy pursued over the past two years. This consistent risk policy is underpinned by active portfolio and risk management. The share of non-performing assets remained low, with an NPA ratio of 2.0% (31 December 2024: 2.3%). Other result for the period amounted to €8 million profit (prior year: net expense of €4 million). As announced in the 2024 Annual Report’s outlook section, certain long-dated bonds were sold and interest derivatives terminated as part of the ongoing strategic risk reduction, in order to further reduce duration and spread-related market risks. The resulting expenses and mark-to-market losses on bonds were offset by a partial reversal of the general banking risk reserve. A gain was realised from the termination of the Funding Trust I structure. The cost-income ratio stood at 76% (prior year: 58%), the increase reflecting the above-mentioned decline in net interest and fee income alongside higher administrtive expenses mainly driven by one-off effects. Return on equity was 10.3% (prior year: 7.6%). Resilient loan book with high-quality customer base The loan book decreased slightly from €8.5 billion at the start of the financial year to €8.4 billion. €4.5 billion, or 54%, of the loan book is refinanced by public programme loans from the KfW Banking Group and other development banks, a significant portion of which are sustainable financings. The remainder of the loan book is refinanced by deposits. The Bank’s long-standing clients are well positioned in the market, operate internationally across various industries, and are well capitalized and with a strong liquidity position. Comfortable capital and adequate liquidity position Even after the partial reversal of the general banking risk reserve, the transitional CET 1 ratio remained stable at 19.3% as of 30 June 2025 (31 December 2024: 19.2%). Business and retail customer deposits amounted to €3.4 billion as of 30 June 2025, compared with €3.7 billion at 31 December 2024. The available liquidity reserve was €1.0 billion (31 December 2024: €1.1 billion). Roughly 90% percent of deposits are protected by deposit guarantee schemes. The Net Stable Funding Ratio, measuring medium- to long-term liquidity, stood at 114% as of 30 June 30 2025, well above the 100% regulatory minimum. The Bank’s leverage ratio remained unchanged at 7.6%, significantly exceeding the statutory minimum requirement. Outlook Ongoing economic and geopolitical uncertainties – such as the Ukraine war and U.S. economic policy – continue to create a challenging operating environment. This leads to a persistently uncertain economic climate in Germany, dampening corporate investment activity during the year. Such developments could affect new business volumes through year-end and, in turn, reduce net interest and fee income. The Bank remains well-positioned in this environment and reaffirms its net income forecasts of €60-70 million for the full financial year 2025. Table: Income Statement for the First Half of 2025 of IKB (Group, in accordance with
German Commercial Code – HGB)  Total differences are rounding discrepancies.   Further details on developments in the first half of 2025 are available in the Half-Year
Report 2025 and in the investor presentation at https://www.ikb.de/en/corporate-clients/berichte-und-praesentationen. Contact:
Armin Baltzer, Phone: +49 211 8221-6236, E-Mail: investor.relations@ikb.de IKB Deutsche Industriebank AG supports medium-sized companies with loans as well as capital markets and advisory services.