Helaba achieves very positive half-year result 2025

• Consolidated profit before tax grows 10.7 percent to € 458 million (H1 2024: € 413 million)
• Cost of risk provisioning falls by 13.3 percent to € -150 million (H1 2024: € -173 million) 
• Operating income increases by 3.5 percent, supported by strong customer-driven activities; new lending business picks up significantly
• Net fee and commission income rises by 6.4 percent to € 290 million (H1 2024: € 272 million); net interest income down by 7.0 percent to € 843 million (H1 2024: € 907 million) due to prevailing market conditions
• Robust growth in result from fair value measurement to € 164 million (H1 2024: € 78 million)
• Return on equity stands at 8.5 percent, in line with previous year; cost/income ratio at 59.6 percent (H1 2024: 58.1 percent)
• CET1 ratio improves to 16.3 percent
• Full-year guidance unchanged: Net profit for FY 2025 expected to be slightly below previous year

Frankfurt am Main – Helaba once again achieved a significant rise in earnings in the first half of the 2025 financial year, with the consolidated profit before tax rising by 10.7 per cent to € 458 million (H1 2024: € 413 million). Sharp growth in net fee and commission income as well as a robust result from fair value measurement were the main drivers behind the Group’s successful performance.

"Our half-year performance is very positive and underscores Helaba's strategic resilience - particularly given the economically challenging times", remarked Thomas Groß, Helaba's CEO. "Every business segment made a positive contribution to the result. In particular, commission-based activities sustained strong earnings momentum, while new lending showed notable growth. We remain committed to our strategy of investing in the future, including our IT infrastructure, AI projects and other growth initiatives", Groß added.

Helaba further strengthened its operating result in the first half of 2025. This favourable trend was primarily attributable to another significant expansion in net fee and commission income and to an improved result from fair value measurement in customer-driven activities. Net fee and commission income rose by 6.4 percent to € 290 million (H1 2024: € 272 million). The result from fair value measurement climbed sharply to € 164 million (H1 2024: € 78 million), more than compensating for a 7.0 percent decline in net interest income to € 843 million (H1 2024: € 907 million) due to prevailing market conditions. Non-interest-bearing business also developed favourably, with the result from investment property rising 1.7 percent to € 134 million (H1 2024: € 131 million).

General and administrative expenses rose by 3.4 percent to € 915 million (H1 2024: € 884 million). This increase was mainly due to higher personnel costs resulting from adjustments to collective bargaining agreements and the recruitment of additional staff in line with Helaba’s growth strategy. At the same time, Helaba continued to modernise its IT infrastructure and expand the use of artificial intelligence across all business areas. Lower contributions to protection schemes of SGVHT and DSGV partially offset these investments.

Net additions to loan loss provisions declined significantly by 13.3 percent to € -150 million (H1 2024: € -173 million). Allocations to risk provisioning explicitly reflect geopolitical risks and uncertainty related to the US administration's trade policy.

Looking ahead, Thomas Groß strikes an optimistic note: "The very positive performance in the first half of the year underlines the fact that we are well positioned for the future with a broad-based, growth-focused business model. Although persistent geopolitical tensions and uncertainties surrounding US trade policy are likely to influence markets in the months ahead, tentative signs of recovery in the German economy, coupled with fiscal stimulus measures, should support investment activity. Lower inflation and a more favourable interest rate environment should provide tailwinds for capital and real estate markets. We also see significant growth potential in financing sustainability transformation. For 2025 as a whole, we continue to anticipate pre-tax earnings only slightly below the previous year’s level, while our medium-term goal remains to generate a stable annual result exceeding €1 billion."

Summary of other key figures for the first half of 2025

The transition to CRR III contributed to a significant rise in the CET1 ratio to 16.3 percent (H1 2024: 14.2 percent), which thus remained comfortably above regulatory requirements.

Return on equity was unchanged at 8.5 percent.

The cost/income ratio stood at 59.6 percent (H1 2024: 58.1 percent).

Other comprehensive income increased by 15.9 percent to € 87 million (H1 2024: € 75 million).

The consolidated net profit after tax rose to € 342 million (H1 2024: € 298 million).

The Group's total assets increased marginally to € 203.3 billion (31 December 2024: € 200.6 billion).

Segment report

Real estate markets remain in a phase of consolidation. In the Real Estate segment, earnings before tax rose to € 121 million (H1 2024: € 89 million).

Additions to loan loss provisions, at € -46 million (H1 2024: € -49 million), remained stable. At € 239 million, net interest income was broadly in line with the same period last year, while new medium and long-term business of € 3.0 billion (H1 2024: € 1.9 billion) continued its upward trend in the first six months of the year.

Pre-tax earnings in the Corporates & Markets segment rose to € 111 million (H1 2024: € 17 million). This result reflects lower costs for risk provisioning and a pronounced increase in net trading income, which nearly doubled to € 107 million (H1 2024: € 60 million) owing to buoyant customer demand and positive valuation effects. Additions to loan loss provisions fell sharply to € -45 million (H1 2024: € -107 million). There was a marginal year-on-year decline in net interest income to € 327 million (H1 2024: € 332 million).

The Retail & Asset Management segment reported net earnings before tax of € 189 million (H1 2024: € 223 million). The year-on-year decrease reflects the absence of a one-off positive valuation effect at Frankfurter Sparkasse and a slight rise in general and administrative expenses. Net interest income was stable at € 200 million (H1 2024: € 207 million), while net fee and commission income increased to € 162 million (H1 2024: € 154 million).

WIBank generated earnings before tax of € 22 million (H1 2024: € 26 million). WIBank performs essential development funding activities for the German state of Hesse. In addition to the promotional loan business, which generates a corresponding net interest income, as a service provider WIBank is also responsible for fulfilling additional tasks mandated by the State of Hesse and other public sector authorities.

Earnings before tax in the Other segment (including consolidation) came to € 15 million, down from € 58 million in the prior-year period. While the segment recorded gains from hedging transactions and non-trading financial assets measured at fair value, these were offset by higher costs for risk provisioning. The latter primarily reflects allowances set aside in response to heightened geopolitical risks and uncertainties relating to US trade policy.