Vereinsbank 1996 Profits Jump 18%

Germanys Bayerische Vereinsbank AG yesterday announced an 18 per cent jump in its 1996 operating profit to 1.6 billion marks ($940 million) amid strong advances in its interest and commission earnings.

The Bavarian bank, which did not release a net profit figure but whose operating result slightly exceeded forecasts, also said in a statement it would propose raising its dividend to 1.60 marks per shares from 1.50 marks.

The earnings growth came on the back of a seven per cent increase in net interest income in 1996 to around 4.8 billion marks and a 14 per cent rise to around 1.2 billion marks in net commission income.

 

That was accompanied by stagnation on risk provisions and own-account trading income, while administrative expenses rose six per cent to 3.9 billion marks.

Income from own-account trading was, at 250 million marks, just below the year-ago level and risk provisions were unchanged at 700 million marks.

Vereinsbanks stock was up 20 pfennigs at 64.60 marks in early screen-based dealings on Tuesday, while the broader market was little changed.

Analysts had on average forecast an operating result of 1.53 billion marks at Vereinsbank and forecasts ranged from 1.43 billion to 1.58 billion marks.