Annual result 2024: Hamburg Commercial Bank with solid operating performance and EUR 248 million pre-tax profit
- Preliminary figures announced in February confirmed – group net result after taxes of EUR 228 (271) million
- Total income rose to EUR 783 (2023: 762) million
- Significant burden from one-off provisions
- CET1 ratio at a strong level of 17.3%
HAMBURG/GERMANY – Hamburg Commercial Bank AG (HCOB) confirmed on Thursday its preliminary figures for the financial year 2024 and the IFRS net income before taxes of EUR 248 (prior-year: 427) million that it had presented in mid-February. A sustained positive development in the client business with a further increase in recurring income contributed to the now audited result, while high one-off provisions had a noticeable negative impact. Asset quality improved due to proactive portfolio management, and the bank maintained its capital and liquidity metrics at a high level.
Solid operational performance – one-off effects had noticeable negative impact
Net income before taxes of EUR 248 (427) million was characterized by a solid operating business performance and a total income of EUR 783 (762) million. At the same time, negative non-operating one-off effects, mainly additions to provisions for legal risks (incl. legal fees), totaling EUR 106 million, had a significant adverse impact on the result. In the previous year, the pre-tax result had benefited strongly from positive one-off effects totaling EUR 94 million. At EUR 20 (156) million, income tax expenses were significantly lower than in the previous year, resulting in a group net result after taxes of EUR 228 (271) million.
The cost-income ratio (CIR) was 50 (39) % and was significantly impacted by the aforementioned one-off effects, including one-off provisions of EUR 18 million for potential severance payments formed to reduce the headcount. Excluding these one-offs, the CIR was 42%.
NPE ratio down to 1.9% – comfortable risk coverage – total assets up 7%
Despite the continued challenging conditions on the real estate markets, the non-performing exposure (NPE) was successfully reduced to EUR 686 (31/12/2023: 800) million through proactive portfolio management and a reduction in non-performing loans of EUR 462 million. As a result, the NPE ratio improved noticeably by -0.4 percentage points to 1.9% (31/12/2023: 2.3%).
The stock of loan loss provisions remained at a comfortable level of EUR 347 (31/12/2023: 366) million.
Total assets increased by 7% to EUR 33.6 (31.5) billion, mainly due to organic growth in the loan book and the acquisition of a shipping loan portfolio.
The CET1 ratio decreased accordingly but, at 17.3% (31/12/2023: 19.5%), was above its strategic target level. The leverage ratio remained significantly above the regulatory requirements at 9.0% (31/12/2023: 9.1%).
Lending units: positive earnings development – total income up 8%
Overall, income from customer business increased substantially across all four credit segments, rising by 8% to a total of EUR 729 (677) million. This encouraging income trend was also reflected in higher profit after tax of EUR 239 (199) million, despite a slight increase in loan loss provisions and almost stable costs. At EUR 6.1 (6.2) billion, new business was roughly on a par with the previous year and led to segment assets of EUR 21.6 (31/12/2023: 19.6) billion.
For further information on the 2024 financial year, please refer to our press release on the preliminary figures dated 13 February 2025 and our website Investor Relations.
Preliminary Group statement of income (IFRS) 2024
| (€ million) | 2024 | 2023 | Change in % |
| Interest income from financial assets categorised as AC and FVOCI | 1,711 | 1,447 | 18 |
| Interest income from other financial instruments | 98 | 65 | 51 |
| Interest expenses | -1,057 | -852 | 24 |
| Positive interest on borrowings and derivatives | – | 3 | -100 |
| Net interest income | 752 | 663 | 13 |
| Net commission income | 26 | 23 | 13 |
| Result from hedging | 2 | 13 | -85 |
| Result from financial instruments categorised as FVPL | -7 | 72 | >-100 |
| Net income from financial investments | 7 | -3 | >100 |
| Result from the disposal of financial assets classified as AC | 3 | -6 | >100 |
| Total income | 783 | 762 | 3 |
| Loan loss provisions | -95 | -79 | 20 |
| Total income after loan loss provisions | 688 | 683 | 1 |
| Administrative expenses | -350 | -332 | 5 |
| Other operating result | -81 | 97 | >-100 |
| Expenses for regulatory affairs, deposit guarantee fund and banking associations | -9 | -21 | -57 |
| Net income before taxes | 248 | 427 | -42 |
| Income tax expenses | -20 | -156 | -87 |
| Group net result | 228 | 271 | -16 |
| Group net result attributable to Hamburg Commercial Bank shareholders | 228 | 271 | -16 |
| Further preliminary key figures of the Group | 31/12/2024 | 31/12/2023 |
| Total assets (€ bn) | 33.6 | 31.5 |
| RWA (€ bn) | 18.2 | 16.5 |
| CET1 capital ratio (%) | 17.32 | 19.53 |
| Overall capital ratio (%) | 22.42 | 25.03 |
| Return on equity (RoE) after taxes1 (%) | 6.2 | 7.4 |
| Leverage ratio (%) | 9.02 | 9.13 |
| Liquidity coverage ratio (%) | 216 | 184 |
| Net stable funding ratio (%) | 116 | 116 |
| Employees (FTE) | 934 | 907 |
1) RoE after taxes based on balance sheet equity at the beginning of the year excluding proposed dividend. | 2) A proposed dividend is already deducted from CET1 capital; the dividend payment is subject to approval by the Annual General Meeting. | 3) The dividend payment of EUR 302 million Euro made in the 2024 financial year was taken into account in advance as a reduction in CET1 capital.
For further information please visit Investor Relations on our website.
About Hamburg Commercial Bank:
Hamburg Commercial Bank AG (HCOB) is a private commercial bank headquartered in Hamburg, Germany, that provides customized financing solutions for German and international companies. HCOB has a strong position in structured real estate and project finance and is a reliable financing partner for the global shipping and aviation sector. Efficient and secure payment transaction services as well as innovative products for foreign trade complete the range of services. The bank is guided by established ESG criteria and operates from several locations in Germany as well as in Amsterdam, London, Luxembourg and Piraeus. For more information, please visit www.hcob-bank.com.
The information contained in this press release does not constitute an offer for the sale of any type of Hamburg Commercial Bank AG securities. Securities of Hamburg Commercial Bank AG may not be sold in the United States without registration pursuant to US securities legislation, unless such a sale takes place on the basis of relevant exceptional provisions.
This press information can contain forward-looking statements. These statements are based on our beliefs and assumptions, on information currently available to us which we consider reliable. Forward-looking statements include all statements which are not historical facts, including information concerning future growth prospects and future economic developments.
Such forward-looking statements are based on assumptions relating to future events and are subject to uncertainties, risks and other factors, a large number we cannot influence. Thus actual events can differ considerably from the forward-looking statements made. We make no warranty for the correctness or completeness of these statements or the actual occurrence of the statements made. Furthermore, we assume no obligation for updating the forward-looking statements after this information has been published.