Bayerische Landesbank AöR reported a full-year 2018 consolidated profit of €822 million, up 21.3% year over year from €677 million, as the German lender's supervisory board named Stephan Winkelmeier its new CEO, effective Aug. 1.
Winkelmeier, who currently serves as CEO of local asset management firm FMS Wertmanagement AöR, will replace Edgar Zoller, who will continue to lead the bank on an interim basis until Winkelmeier joins in August. Zoller will return to his role as deputy CEO once Winkelmeier takes over.
BayernLB's return on equity came in at 9.4% at the end of 2018, up from 7.4% in 2017.
Net interest income rose to €1.74 billion from €1.66 billion a year ago, while gains on fair value measurement declined to €151 million from €205 million in the same period.
Net commission income increased 2.8% on a yearly basis to €270 million from €263 million. Gains on financial investments, which mainly consists of income from sales of bonds, notes and fixed-income securities, amounted to €10 million in 2018, down from €23 million a year earlier.
The bank booked reversals from risk provisions in the credit business of €135 million, compared to provisions of €94 million in 2017.
The nonperforming loan ratio stood at 0.8% at the end of 2018.
As of Dec. 31, 2018, the German lender's fully loaded common equity Tier 1 ratio was 15.2%, compared to 15.3% a year ago. The cost-to-income ratio remained within the target range at 61.9% as of 2018-end, compared to 59.9% at the end of 2017.
The Munich-based bank noted it will propose to its annual general meeting to distribute €175 million in dividends to its owners, the German state of Bavaria and the Bavarian savings banks, compared to €50 million a year ago.
BayernLB added it anticipates its pretax profit for 2019 to be in the "mid-triple-digit million range."