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LBBW FY'17 profit jumps to €419M on absence of goodwill impairments

Landesbank Baden-Württemberg full-year 2017 preliminary net consolidated profit of €419 million, up from €11 million in 2016, on the back of an absence of goodwill impairments for the year.

The German lender did not book impairment of goodwill for 2017, compared to €379 million a year earlier. The 2016 figures were adjusted in accordance with IAS 8, the bank noted.

Pretax consolidated profit increased year over year to €515 million from €142 million. Return on equity for 2017 was 4.1%, compared to 1.1% in 2016.

Net interest income amounted to €1.59 billion in 2017, down from €1.67 billion a year earlier. Net fee and commission income ticked up over the same period to €534 million from €527 million, reflecting higher earnings from payment transactions and from the bank's guarantee and custody business.

Allowances for losses on loans and advances totaled €92 million, widening from €51 million in 2016. Net expenses from restructuring narrowed on a yearly basis to €41 million from €87 million.

LBBW's CRR/CRD IV common equity Tier 1 ratio was 15.7% at Dec. 31, 2017, on a fully loaded basis, compared to 15.2% at the end of 2016.

For 2018, the bank projects consolidated profit before tax of "a mid-three-digit million-euro amount."