Bayerische Landesbank reported a 24.4% year-over-year increase in its 2017 full-year consolidated profit, to €677 million from €545 million.
Return on equity for the year came in at 7.4%, down from 8.1% in the prior year.
Net interest income rose in 2017 to €1.66 billion from €1.48 billion a year ago, while gains on fair value measurement amounted to €205 million, up 43.9% from €142 million.
Net commission income dropped to €263 million from €296 million a year ago, reflecting lower earnings in the credit card business of online business DKB. Gains on financial investments also declined 91.4% on a yearly basis to €23 million from €274 million, with the prior year having included substantial gains from the sale of shareholdings.
Risk provisions in the credit business also rose, to €94 million from €87 million in 2016.
The German bank's nonperforming loan ratio ticked down to 1.5% as of 2017-end from 1.6% at 2016-end.
Its common equity Tier 1 ratio stood at 15.3% as of 2017-end, up from 13.2% at 2016-end, primarily as a result of a reduction in risk-weighted assets, the denominator of the ratio, to €61.4 billion from €65.2 billion.
CEO Johannes-Jörg Riegler said the bank will distribute €50 million to its owners, the German state of Bavaria and the Bavarian savings banks.
The bank maintained its forecast of a "mid-triple-digit million" pretax profit in 2018 despite an "extremely challenging economic environment."