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Helaba's FY'17 net profit drops 24.7% YOY

Landesbank Hessen-Thüringen Girozentrale, known as Helaba, reported consolidated net profit under International Financial Reporting Standards of €256 million for full year 2017, down 24.7% from €340 million a year earlier.

The Sparkassen- und Giroverband Hessen-Thüringen unit's pretax profit amounted to €447 million, compared to the year-ago €549 million.

Net interest income declined on a yearly basis to €1.09 billion from €1.23 billion, while net fee and commission income increased to €354 million from €340 million. Net trading income rose to €268 million from €146 million.

Net income from financial investments was €35 million, compared to €53 million in 2016. Reversals of provisions for losses on loans and advances amounted to €56 million, compared to a charge of €154 million a year ago.

Helaba's phased-in and fully loaded common equity Tier 1 ratios stood at 15.4% and 15.2%, respectively, at the end of 2017, both up from 14.3% and 13.8% at 2016-end. The total capital ratio rose to 21.8% from 20.5%.

CEO Herbert Hans Grüntker said the German lender expects interest rates to continue to be mired at a very low level in 2018.

"Against this backdrop, we assume that conditions will remain equally challenging. We anticipate a stable performance in our business and a profit before taxes in the mid-triple-digit million range," Grüntker said.