Hamburg Commercial Bank ends financial year 2025 with net income before taxes of EUR 289 million
- Preliminary business figures from February confirmed
HAMBURG/GERMANY – Hamburg Commercial Bank AG (HCOB) confirmed its preliminary IFRS net income before taxes of EUR 289 (previous year: 248) million, as well as the other consolidated figures for the 2025 financial year on Thursday. The improved pre-tax result was achieved despite the deliberately reduced balance sheet as part of a strategic business focus and a significant negative one-off effect in personnel expenses. Solid operating performance, stringent cost discipline, and one-off income in other operating result contributed to the positive result. The bank successfully implemented its strategic realignment at the end of the year and strengthened its customer-centric core franchise businesses to ensure sustainable and robust earnings growth. At the same time, HCOB reduced portfolios no longer considered core in a value-preserving manner and ahead of schedule.
Pre-tax profit up 17% and above target – despite negative one-off effect
Net income before taxes improved significantly to EUR 289 (248) million, despite a substantial negative one-off effect from staff reductions. This was primarily due to solid operating performance and a positive other operating result, which was significantly negative in the previous year due to one-off effects. Excluding one-off effects in personnel expenses and other operating result, pre-tax profit fell by 11% year-on-year to EUR 314 (354) million, with the decline in 2025 attributable essentially to the deliberate reduction in lending volume. The group net result after taxes of EUR 165 (228) million was burdened by income taxes of EUR 124 (20) million, in particular deferred tax expenses (EUR 104 million). Current tax expenses amounted to EUR 20 million.
NPL volume down 17% – declining total assets due to business focusing
Despite the ongoing challenging conditions in the real estate markets, HCOB successfully reduced its non-performing loan (NPL) volume by 17% to EUR 540 (31/12/2024: 650) million by consistently offloading non-performing loans. With a simultaneous reduction in loan volume, the NPL ratio remained at 3.3% (31/12/2024: 3.3%). With EUR 275 (31/12/2024: 347) million, the bank continues to have a comfortable stock of loan loss provisions, providing a buffer against potential adverse economic developments.
The group’s total assets decreased in line with expectations and totalled EUR 28.6 (33.6) billion at year-end. This decline was due to the discontinuation of new business in non-strategic business areas, the reduction of the corresponding portfolios, the devaluation of the US dollar, and a high repayment level.
In line with HCOB’s distribution policy, which provides for a CET1 ratio target of at least 16%, the Annual General Meeting approved a dividend payment of EUR 4.16 per share. Taking this distribution into account, the CET1 ratio2 as of 31 December 2025 was 16.5% (31/12/2024: 17.3%), which is still well above the regulatory requirements.
Lending units: Total income almost at previous year’s level – franchise new business stable
New business in the four lending units amounted to EUR 5.0 (6.1) billion in total, entirely due to the discontinued activities in non-strategic business areas. The new business in core franchise areas remained stable at EUR 4.9 (4.9) billion, despite deliberately restrained new business in the Real Estate Germany segment and volume-reducing currency effects resulting from a weaker US dollar. Average assets in the loan segments decreased to EUR 18.7 (31/12/2024: 19.3) billion. Nevertheless, at EUR 701 (714) million, total income was maintained at approximately the previous year’s level. Earnings after taxes totalled EUR 210 (235) million.
Outlook
Based on our solid earnings and clear focus on cost efficiency, we forecast IFRS net income before taxes of around EUR 300 million for the financial year 2026. This outlook assumes that the Middle East conflict does not escalate further or extend beyond a few months
Further information on the 2025 financial year can be found in our press release on the preliminary financial results dated 12 February 2026 and on our website.
Group statement of income (IFRS) 2025
| (€ mn) | 2025 | 2024 | Change (in %) |
| Net interest income | 672 | 752 | -11 |
| Net commission income | 28 | 26 | 8 |
| Result from hedging | -3 | 2 | >-100 |
| Result from financial instruments categorized as FVPL | 26 | -7 | >100 |
| Net income from financial investments | 7 | 7 | – |
| Result from the disposal of financial assets classified as AC | 13 | 3 | >100 |
| Total income | 743 | 783 | -5 |
| Loan loss provisions | -109 | -95 | 15 |
| Total income after loan loss provisions | 634 | 688 | -8 |
| Administrative expenses | -378 | -350 | 8 |
| Other operating result | 37 | -81 | >100 |
| Expenses for regulatory affairs, the Deposit Protection Fund, and banking associations | -4 | -9 | -56 |
| Net income before taxes | 289 | 248 | 17 |
| Income tax expense | -124 | -20 | >100 |
| Group net result | 165 | 228 | -28 |
| Group net result attributable to Hamburg Commercial Bank shareholders | 165 | 228 | -28 |
| Further key figures of the Group | 31/12/2025 | 31/12/2024 |
| Total assets (€ bn) | 28.6 | 33.6 |
| RWA (€ bn) | 13.1 | 18.2 |
| CET1 capital ratio2 (%) | 16.5 | 17.3 |
| Overall capital ratio2 (%) | 21.2 | 22.4 |
| Return on equity (RoE) after taxes1 (%) | 4.5 | 6.2 |
| Leverage ratio2 (%) | 7.3 | 9.0 |
| Liquidity coverage ratio (%) | 204 | 216 |
| Net stable funding ratio (%) | 119 | 116 |
| Employees (FTE) | 868 | 934 |
1) RoE after taxes is based on balance sheet equity at the beginning of the year less dividend | 2) The dividend payment for the financial year 2025 to be paid out in 2026 was already taken into account as a reduction in the Common Equity Tier 1 capital.
About Hamburg Commercial Bank
Hamburg Commercial Bank AG (HCOB) is a private commercial bank headquartered in Hamburg that specialises in tailor-made financing solutions for German and European companies. It also has a strong position in Germany-focused real estate financing, is an established project financier in Europe, and a reliable partner for the shipping sector. Efficient and secure payment 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. Under the ‘Hamburg Direct Bank’ brand, HCOB offers call money and fixed-term deposits for private customers. Further information is available at 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.