IKB Deutsche Industriebank AG increases new business volume and earnings in financial year 2025

IKB Deutsche Industriebank AG increases new business volume and earnings in financial year 2025

• New business volume increased significantly to €2.8 billion (previous year: €2.2 billion)
• Risk provisions remained low with an expense of €20 million (previous year: €45 million); NPA ratio in the loan book declined to 2.0% (31 December 2024: 2.3%)
• Group profit before taxes improved to €59 million (previous year: €56 million)
• One-off effects led to administrative expenses of €146 million (previous year: €139 million) – significant relief expected for 2026
• Return on equity after taxes at 8.5% (previous year: 7.2%)
• CET1/Tier 1 ratio at 17.2% after dividend distribution of €195 million

[Düsseldorf, 13 March 2026] – IKB Deutsche Industriebank AG significantly raised its new business volume in the 2025 financial year to €2.8 billion (previous year: €2.2 billion), despite a demanding macroeconomic environment. The increase underscores the Bank’s strong competitive position in Germany’s upper mid-cap segment. Profit before taxes amounted to €59 million and was above the prior-year level of €56 million. “We are extremely pleased with the bank’s robust fiscal‑year performance, which has generated strong momentum. We thank our clients for their continued trust in IKB as their financing partner. Despite a challenging market environment, we successfully expanded our business. For 2026, we expect further growth in new business,” said Dr. Michael Wiedmann, CEO of IKB.

Stable earnings and declining risk provisions

Net interest income amounted to €176 million (previous year: €205 million) in the financial year 2025. The decline reflects the lower credit volume from the previous year. Additionally, large portions of the increased new business were only disbursed from the second quarter onward, leading to delayed accrual of interest income. Net commission income rose to €19 million (previous year: €16 million), driven by higher new lending demand and increased capital market activity among clients.

Administrative expenses increased to €146 million (previous year: €139 million), primarily due to one-off costs related to the IT service provider transition and strategic projects. Personnel expenses amounted to €78 million (previous year: €76 million), reflecting salary adjustments and a higher average number of employees. Other administrative expenses were €68 million (previous year: €64 million). For the current year, the Bank expects significantly lower administrative expenses of less than €135 million.

Other operating income amounted to €31 million (previous year: €20 million). We continued our planned derisking measures in the securities portfolio. The associated expense under German GAAP was fully offset by releases of provisions. These measures show a clear disconnect between German GAAP reporting and the underlying economic fundamentals. Economically, our interest rate hedging derivatives contributed approximately €150 million in positive market value, materially strengthening our economic position, although not recognized in earnings due to German GAAP accounting rules.

Risk provisions decreased significantly to €20 million (previous year: €45 million), reflecting selective lending and active portfolio and risk management. The non-performing assets (NPA) ratio remained at a low level of 2.0% (31 December 2024: 2.3%).

The cost-income ratio stood at 75% (previous year: 63%). The increase compared with the prior year is attributable to lower net interest and commission income combined with higher administrative expenses, largely due to one-off effects. Return on equity amounted to 8.5% (previous year: 7.2%).

Profit before taxes of €59 million (previous year: €56 million) was in line with expectations.

Resilient loan book supported by strong client base

The loan book totaled €8.5 billion in the 2025 financial year. Of this amount, €4.4 billion (54%) are refinanced by public programme loans of the KfW banking group and other development institutions, with a significant share allocated to sustainable financings. The remaining loan book is predominantly deposit-funded. IKB’s long-standing mid-cap clients remain strongly positioned in their industries, with international operations, diversified business models, and solid levels of equity and liquidity.

Comfortable capital position and sound liquidity

IKB delivers solid profitability with stable risk provisions, and its capital position has remained at a consistently strong level for many years. Based on this performance the Management Board has proposed to the Annual General Meeting a distribution of €195 million from retained earnings, comprising approximately €152 million in profit carried forward and a regular dividend of €43 million, equivalent to 70% of Group net income. Following the proposed distribution, IKB Group’s CET1 / Tier 1 ratio remains robust at 17.2% (prior year: 19.2%) well above regulatory minimum requirements.

Customer deposits from corporate and retail clients amounted to €3.6 billion as of 31 December 2025 (31 December 2024: €3.7 billion). The free available liquidity reserve totaled €1.3 billion (31 December 2024: €1.1 billion). Approximately 91% of deposits are covered by deposit protection schemes. The Net Stable Funding Ratio (NSFR) stood at 120% (31 December 2025), sustainably above the 100% regulatory minimum. The leverage ratio remained unchanged at 6.2%, significantly exceeding minimum regulatory requirements.

Outlook

Global economic performance in 2026 is expected to remain influenced by increasing geopolitical fragmentation, international tensions and economic policy uncertainty. In Germany, capacity utilization in the manufacturing sector is likely to improve gradually thanks to recovering export activity, supporting corporate investment sentiment. Corporate investments are expected to grow from mid‑2026 onward. For the 2026 financial year IKB expects the following target metrics:

• A largely unchanged CET1/Tier 1 ratio at group level (2025: 17.2%)
• An increase in new lending volume (2025: €2.8 billion)
• Risk provisions on the prior-year level
• Lower administrative expenses of less than €135 million, reflecting strongly reduced project spending and continued cost discipline
• Group profit before taxes above €60 million and a return on equity after taxes of nearly 10% (based on a return on equity with 12% CET 1 on average RWA)
• Future dividend distributions of 60%–80% of group net profit after taxes

Potential negative impacts in the current financial year may arise from geopolitical conflicts as well as volatility in capital and commodity markets or new regulatory requirements or interpretations.

Table: IKB income statement for the 2025 financial year (Group, in accordance with German commercial law)

Any differences in totals are due to rounding effects.

Further details on the business performance in the 2025 financial year can be found in the 2025 Annual Report and the investor presentation at https://www.ikb.de/en/corporate-clients/reports-and-presentations available.

Contact:
Armin Baltzer, Phone: +49 211 8221-6236, E-mail: investor.relations@ikb.de.

IKB Deutsche Industriebank AG provides small and mid-size companies with finance as well as capital market and advisory services.