DekaBank Deutsche Girozentrale reported full-year 2016 IFRS economic result of €415.1 million, down from €610.6 million earned in 2015.
The decrease in economic result, the company's main management and performance indicator, was mainly due to an increase in risk provisions to €209.8 million in 2016, including €195 million for the lending business, from €79.5 million in 2015.
Net interest income fell to €139.2 million in 2016 from €182.7 million in 2015, mainly due to low interest rates that led to a lower contribution to earnings from short-term liquidity investments, according to the bank. Net commission income remained relatively flat at €1.11 billion year over year, due to high net sales and a related increase in total assets.
The financial result from trading book positions for 2016 declined to €252.8 million from €292.9 million a year earlier. Total expenses were reported at €988.6 million in 2016, up from €913.5 million in 2015.
The group's fully loaded core Tier 1 capital ratio stood at 16.7% at Dec. 31, 2016, compared to 12.4% at 2015-end. The bank said its dividend to shareholders remains unchanged at a total of €155 million, representing a dividend yield of 3.4%.
As for 2017, the bank said it expects an economic result in line with the result it reported for 2016.