Half-yearly financial report 2014

Transcription

1 Half-yearly financial report 2014 Meine Bank heißt Haspa.

2 Haspa 2014 half-yearly financial report Contents / Haspa on the Internet Contents Management Interim management report Half-yearly financial statements 02 Foreword of the Board of Management 03 The Board of Management 04 Environment 05 Course of business 06 Development of income 07 Risk report 09 Report on expected developments 10 Balance sheet 12 Income statement 14 Notes 15 Responsibility statement Haspa on the Internet For news and information about Haspa, please go to: Information on Haspa s multifaceted corporate social responsibility activities can be found at: Haspa is an attractive employer offering excellent prospects. More information on this on the Internet at:

3 Haspa 2014 half-yearly financial report 01 Short profile Short profile Hamburger Sparkasse AG, Haspa for short, is Germany s largest Sparkasse (savings bank). It has total assets of 41 billion and employs more than people. Haspa offers a wide range of financial services for private individuals and businesses, serving the more than three million people living in the Hamburg Metropolitan Region. Haspa is a public sector savings bank committed to serving the public interest. HASPA Finanzholding, a legal entity formed under old Hamburg law, holds 100 percent of the shares in Hamburger Sparkasse AG. HASPA Finanzholding has no owners and is obligated by its articles of association and bylaws to fulfil the mission entrusted to the savings bank. Haspa is one of the few independent savings banks in Germany. It is also a member of the Hamburg-based Hanseatischer Sparkassen- und Giroverband (Hanseatic Savings Banks Association HSGV) and the Bremen-based Verband der Deutschen Freien Öffentlichen Sparkassen e.v. (Registered Association of Independent German Public Savings Banks). Through HSGV, Haspa is affiliated with the Deutscher Sparkassen- und Giroverband e.v. (German Savings Banks Association) in Berlin and Bonn, and therefore fully included in the comprehensive guarantee system of all German savings banks. This guarantee system for financial institutions ensures that customer deposits at all German savings banks are secured without limitation. This applies to all deposits from private individuals, businesses and institutions.

4 02 Haspa 2014 half-yearly financial report Management Foreword of the Board of Management Foreword of the Board of Management Ladies and Gentlemen, Extremely low interest rates, increasing regulation and keen competition still pose major challenges for the lending industry. Thanks to its sustainable, regionally focused business model, Haspa is still well positioned in this challenging environ ment. As a result, we were once again able to achieve success in the first half of ,000 new customers placed their trust in us in the first six months of this year. Our expertise, customer proximity and high-quality customer support and consulting services enable us to remain a reliable partner for our customers. In 2014, Haspa was also ranked first among eleven banks tested in Hamburg in Focus Money s CityContest with its consulting services for private customers. Continued growth in deposits is testament to the trust our customers place in us. And with over 2 billion new loan approvals for our private and corporate customers, we have also made a contribution in the reporting period for keeping money in circulation and the business cycle going in the Hamburg Metropolitan Region, and for creating and safeguarding growth and jobs locally. Haspa has been the bank for all of Hamburg since our foundation in We focus in particular on private customers and SME customers. Our financial services portfolio for high net worth customers is rounded off by our Private Banking, named the Best Asset Manager in all German-Speaking Territories for the eleventh time running. Our StartUp-Center is the first port of call for start-up entrepreneurs. And for large real estate or enterprise customers we have specialised industry expertise. We are available for our customers around the clock with haspa.de and our online banking. We will continue to expand our mobile and online services and in addition to our traditional branch business offer our customers human banking in a digital world. Haspa is the bank for everyone. We assist people and companies in our region in their financial planning and in safeguarding the future, thus serving the public interest in the Hamburg Metropolitan Region. Added to this are our multi faceted corporate social responsibility activities. The promotion of education and social welfare, the arts, music and sports lies particularly close to our hearts. In particular, funding a host of smaller projects of charitable institutions in the Hamburg region, for example from the special-purpose revenue of Haspa LotterieSparen, is typical for us as a savings bank. We thank our customers and business partners for the trust they continue to place in us. Special thanks also go to all Haspa employees. In a challenging environment, they have demonstrated a very high level of expertise and commitment. Our staff s great flexibility, as well as the constructive cooperation with the Works Council, have enabled us to manage all necessary change processes in order to continue to grow together with our customers. Hamburg, 26 August 2014 The Board of Management

5 Haspa 2014 half-yearly financial report 03 Management Board of Management Dr. Harald Vogelsang, born in 1959, holds a banking diploma and a law degree, and was appointed to the Board of Management in He has been Spokesman of the Board of Management of Hamburger Sparkasse AG since In his capacity as Spokesman of the Board of Management he is responsible for the Corporate Development, Human Resources and Communication reporting area, to which the Human Resources, Audit, Corporate Communication and Board Staff divisions are assigned. Frank Brockmann, born in 1963, holds a banking diploma and is a qualified banking services and operations specialist (Bankfachwirt). He has been a member of the Board of Management of Hamburger Sparkasse AG since 2008 and has been Deputy Spokesman of the Board of Management since 1 April In the Corporate Customers and Treasury reporting area, he is responsible for the Corporate Customers I, Corporate Customers II, Real Estate Customers, SME Customers, Private Banking, Treasury, Enterprise Customers and Sales Management Corporate Customers divisions. Axel Kodlin, born in 1962, holds a banking diploma and a degree in business administration (Diplom-Kaufmann), He was appointed a deputy member of the Board of Management of Hamburger Sparkasse AG on 1 June His Processes and IT reporting area comprises the Business Organisation. Information Technology and Securities and Transaction Service divisions, Bettina Poullain, born in 1958, holds a degree in business administration (Diplom- Kauffrau). She has been a member of the Board of Management of Hamburger Sparkasse AG since In her Finance and Risk reporting area, she is responsible for the Compliance, Comprehensive Bank Controlling, Credit and Legal and Central Purchasing and Procurement divisions. Jürgen Marquardt. born in 1963, holds a banking diploma and a degree in savings bank administration. He was appointed a deputy member of the Board of Management of Hamburger Sparkasse AG on 1 March His Private Customers reporting area includes the Private Customers Central, Private Customers North-East, Private Customers North-West, Private Customers South-East and Sales Management Private Customers divisions.

6 04 Haspa 2014 half-yearly financial report Interim management report Environment Interim management report of Hamburger Sparkasse AG for the period ended 30 June 2014 Environment Economic upturn Following a 0.4 percent rise in real gross domestic product (GDP) in 2013, the economic upturn gained momentum in the first half of In the first three months of the year, the German economy expanded by 0.8 percent quarter-on-quarter, due not least to the mild winter. This constituted the largest increase in three years. The positive stimulus for this growth was provided by the domestic economy; in addition to rising consumer spending, there was significantly more investment than in the prior-year period. The European Central Bank (ECB) continued its extremely expansionary monetary policy, lowering its key interest rate by 0.1 percentage points in June 2014 to 0.15 percent. Furthermore, the ECB imposed a negative interest rate on deposits by banks for the first time and also announced the provision of additional liquidity. The low interest rates mean negative real interest rates. In Germany, for example, consumer prices at the end of the first half of 2014 were up 1.0 percent on the year-earlier period. Hamburg s economic situation is encouraging. The economic barometer of the Hamburg Chamber of Commerce showed in the first and second quarter of 2014 that a substantial majority of the Hamburg-based companies surveyed thought that business was good, not bad. The momentum of the regional economy can be seen on the Hamburg labour market in an increase in the number of employees subject to social security contributions to 887,700 in April 2014 almost 2 percent more than in the same month in Strategic focus We continue to refine our corporate vision and the strategies that we derive from it. In that connection, we will stick to the stable core of our alignment i.e. a main emphasis on our operations in the Hamburg Metropolitan Region and our focus on all private and corporate customers, the enterprise and real estate customer business, as well as private banking. Haspa is the bank for all of Hamburg. As a reliable partner and indispensable promoter of the Hamburg Metropolitan Region, our actions are inseparably intertwined with the interests of Hamburg and the welfare of all its residents. In particular, we provide opportunities for safe and interest-bearing investments of savings, promote the ability to save money and accumulate assets among broad sectors of Hamburg s population and serve to fulfil the credit needs of the local economy, especially taking SMEs into account. We are optimising our market presence and customer focus to further strengthen our competitive advantages of expertise and regionality. By expanding the range of services we offer, we are adapting to the needs of different customers. For this, we created five areas of competency financial consulting, asset accumulation, asset optimisation, property financing and corporate customer advisory in addition to customer support, launching these company-wide in mid-june after successful piloting. With four regional divisions, 27 regions and over 200 branches in the Hamburg Metropolitan Region, we are close to the customer at all times and have an in-depth knowledge of the market at a local level. In addition, we want to actively shape the noticeable trend also in the banking business towards mobile and online services at Haspa and develop an integrated range of digital services for our customers with our Digital Sales division. Haspa s present website provides an excellent basis for this.

7 Haspa 2014 half-yearly financial report 05 Interim management report Course of business Course of business Continued strengthening of the retail banking business more than 30,000 new customers As a retail bank, Haspa focuses on competent and comprehensive services for private customers as well as small and midsize corporate customers (SMEs) in the Hamburg Metropolitan Region. Based on this stable business model and our proximity to customers, we succeeded in acquiring around 30,000 new customers in the first six months of Our good position in Hamburg s banking market is also reflected in its market penetration which it achieves thanks to over 5,000 employees and more than 200 branches and customer service centres among other things. The number of giro accounts totals almost 1.4 million. The number of giro account holders who have opted for the HaspaJoker account Hamburg s advantage account continues to expand, totalling around 630,000 at the end of the first half-year. This has further consolidated Haspa s strong position. We are delighted to report that the number of Haspa Mäuse- Konto accounts has already exceeded the 100,000 mark in the year to date. Currently offering 3 percent interest from the first euro up to an amount of 500, Haspa s MäuseKonto account is not only a popular and safe investment. Launched as a savings and learner account, it also gives children the opportunity to learn how to manage money and a current account. Customer deposits rise yet again, securitised liabilities reduced Within our liability structure, which is dominated by retail banking deposits, we recorded higher maturities for own issues, which reduced securitised liabilities by 0.9 billion to 2.3 billion. We are happy to report that this decrease, which had already been considered in our planning, is accompanied by a corresponding increase in customer deposits. For example, liabilities to customers likewise climbed by 0.9 billion, or 3.2 percent, to over 29.5 billion overall. The main driver of this increase was our traditional savings deposits, which were up 9.0 percent to almost 7.1 billion. Other liabilities increased by around 0.3 billion or 1.5 percent to 22.5 billion. For one thing, this development shows that our customers place a great deal of trust in Haspa. However, in view of the extremely low actually historically low interest rate level at present, it also demonstrates that our customers need to hold higher levels of liquid assets. In light of the emerging regulatory requirements, Haspa s equity was recently increased further in line with planning and together with the fund for general banking risks amounts to around 2.7 billion. Going forward, Haspa will remain the partner that Hamburg s economy has come to rely on. New loan approvals returning to normal with a slight increase in total assets Since the onset of the financial market crisis, Haspa has warded off an impending credit crunch in the Hamburg Metropolitan Region by significantly increasing new loan approvals. This has supported Hamburg s growth in the long term without easing our risk assessment criteria. Following this expansion in the crisis years, new loan approvals in the first half of 2014 fell to pre-2008 levels, specifically to 2.1 billion. Alongside a generally lower demand for credit, the low interest rates are prompting our customers to increasingly repay their loans with available cash. In addition, we acted as mediators in the consumer lending business within the German Savings Banks Finance Group and did not engage in transactions reflected in the balance sheet. Following substantial increases in receivables from customers in earlier years, at 29.5 billion this item was down slightly in the first half of 2014 on the end of the previous year. Total assets edged up 0.9 percent to around 40.9 billion. In addition to our debentures and other fixed interest securities as well as equities and other non-fixed interest securities, which together increased by 0.2 billion, this is attributable to higher receivables from banks and liabilities to banks at the reporting date. These higher receivables from and liabilities to other banks can also be viewed as a reflection of surplus liquidity in the market, connected with the current low interest rate policy.

8 06 Haspa 2014 half-yearly financial report Interim management report Development of income Development of income Result above prior-year level in a challenging climate The persistence of extremely low interest rates, the effects of continued sovereign debt problems on the financial markets, increasing regulation and keen competition still pose major challenges for the lending industry. Haspa succeeded in posting a result for the half-year that was satisfactory on the whole despite the very challenging environment. Haspa posted earnings of 40 million for the first half of the year, up 2.5 million on earnings for the same period in 2013, in line with our expectations. Although the result before loan loss provisions decreased on account of expenses for interinstitutional deposit guarantees, this improvement can be attributed to a sustained encouraging trend in risk provisions, especially in the lending business. Net interest income down slightly Compared with the prior-year period, net interest income decreased by around 7 million, or 1.9 percent, to 345 million. This decline was mainly due to slightly lower contributions to net interest income from the customer business. Here, low interest rates in particular put a strain on liability margins, as expected, and the decrease in the demand for credit impacted on asset holdings. Nevertheless, the customer business still contributes by far the largest portion of net interest income. The contribution from the maturities transformation to the result for the financial year essentially remained at the prior-year level. At just under 73 percent, net interest income continues to account for the lion s share of gross profit (which is the sum of net interest and net commission income). Expenses increased General and administrative expenses, other operating expenses and depreciation, amortisation and write-downs of tangible and intangible fixed assets rose by a total of 30 million year on year, or 8.4 percent. The increase over the prior-year period mostly stems from charges in connection with inter-institutional deposit guarantees aimed at increa s- ing customer confidence in the banking system. In addition, the low market interest rates in particular are currently having a negative effect on the measurement of our pension provisions. Net revaluation gain up year on year The measurement approaches that Haspa uses are conservative, as in the previous year. As a result Haspa s proprietary investments in securities are still measured using the strict lower-of-cost-or-market principle, taking into account the requirement to reverse write-downs. On the whole, the net revaluation gain improved further in the first six months of 2014 in comparison with the already strong prior-year period, with marked improvements in the required risk provisions in the lending business and in the net revaluation gain from securities. The net revaluation gain also contains further substantial provisions for potential future risks in the year s second half or in subsequent years. Higher net commission income Net commission income developed encouragingly on the whole in the first half of 2014, rising to over 130 million. Thanks to largely consistent performance from month to month, it was therefore 6 million, or 4.8 percent, higher than the comparable prior-year figure. This increase is mainly attributable to income from clearing transactions as well as from the securities business. In contrast, the contributions from the insurance business developed less favourably, also on account of the low interest rates.

9 Haspa 2014 half-yearly financial report 07 Interim management report Risk report Risk report Internal control and risk management system as an essential component of risk management Pursuant to section 25a (1) German Banking Act, overall responsibility for proper business organisation and the risk management integral to it rests with Haspa s Board of Management. Among other things risk management comprises the implementation of internal control procedures consisting of an internal control system and an internal auditing system. Internal Audit is an integral part of Haspa s risk management and internal control procedures. It carries out its responsibilities autonomously and independently on behalf of the full Board of Management. Risk management and the internal control processes also cover the accounting process. Internal Audit directly or indirectly reviews the accounting related internal control and risk management systems based on a risk oriented audit plan. Stable exposure to risk Given Haspa s retail banking strategy, private customers and SME customers are still at the heart of its comprehensive bank controlling activities. Gains and risks from trading, own investments, maturities transformation and the operating business complete the picture. The present value risks for the bank as a whole as well as individual risk types have remained virtually unchanged from the close of The focus of our proprietary investment portfolio remains conservative. Risks are only taken within a manageable range and are mitigated using appropriate hedging strategies. Solid economic and regulatory risk-bearing capacity guarantees risks taken The bank s risk-bearing capacity with regard to internal and external requirements is assessed by regularly comparing the available cover assets with the risks taken. Its risk coverage potential of over 3 billion in the leading going concern approach increased as compared with the end of 2013 and thus remains more than adequate to cover the risks taken, which amounted to less than 400 million in total as at 30 June 2014 without considering diversification effects. The cover assets thus continue to exceed the bank s risk exposure many times over. The existing risk-bearing capacity system also ensures compliance with the regulatory capital adequacy requirements under the Capital Requirement Regulation (CRR) even when all NPV limits are utilised in their totality and at the same time. The existence of Haspa as a going concern has thus been ensured. In accordance with the present value going concern approach, a regular comparison from the perspective of a present value liquidation approach is also performed as a strict secondary constraint for creditor protection. From this perspective, too, the available cover assets are more than adequate to cover the risks taken. Regulatory capital adequacy requirements for credit institutions require that they maintain an adequate capital base at all times. As at 30 June 2014, Haspa s total capital ratio was 10.0 percent and its Tier 1 capital ratio was 9.0 percent. At around 13.4 percent and 12.5 percent, respectively, the total capital ratio and the Tier 1 capital ratio of the HASPA Group remained at a comfortable level.

10 08 Haspa 2014 half-yearly financial report Interim management report Risk report Liquidity risks limited through diverse funding Beyond its short-term liquidity outlook, Haspa also uses its divisional planning to develop a strategic liquidity outlook that identifies possible liquidity needs early on. This enables us to assess our liquidity needs for future maturities and manage cash flows accordingly. Based on our funding strategy, stoplight systems are used to define and regularly monitor Haspa s risk tolerance, taking into account the funding potential, such that timely control measures can be adopted as necessary. Risk scenarios are also monitored and analysed on the same basis. Overall, the liquidity situation continues to be comfortable, not least because of our diversified liability structure. Balanced overall exposure No going-concern risks or risks with a material effect on Haspa s net assets, financial position and results of operations have been identified for the current year despite the uncertainties regarding future macroeconomic developments and the sovereign debt crisis. As at 30 June 2014, Haspa s liquidity exceeded the regulatory minimum requirement by a factor of 2.7.

11 Haspa 2014 half-yearly financial report 09 Interim management report Report on expected developments Report on expected developments Economic upswing continues Despite the increasing uncertainties, the recovery of the German economy is expected to continue. The sustained economic upswing is being driven by demand for investments and, in particular, by private consumption. Through an increase in the number of people in gainful employment and rising wages, the upturn on the labour market is pushing up disposable income and consumer demand. The decreasing propensity to save as a consequence of the exceedingly low interest rates is also boosting private consumption. In terms of capital investments, there is a backlog of several years. In 2014 as a whole, the German economy is likely to expand by close to 2 percent on the back of the strong growth in the first quarter, among other factors. Risks to the economic upturn include, in particular, the effects of sanctions imposed in connection with the Ukraine crisis, which are impacting on the economic recovery in the euro zone. The combination of the appreciation of the euro, falling inflation rates and the increase in money market rates prompted the ECB in June to implement a package of measures comprising interest rate cuts and monetary policy announcements about the provision of additional liquidity. The ECB s key rate was lowered to 0.15 percent, for example. To help solve the continuing sovereign debt problems and support the euro zone s economic recovery, the ECB is expected to maintain its extremely expansionary monetary policy for even longer and nip in the bud possible forces that could fuel a rise in interest rates in Europe. The Hamburg Chamber of Commerce s economic barometer showed in the second quarter of 2014 that Hamburg-based companies are more optimistic than pessimistic in their assessments of their current and future business situation, investments and human resources planning and the forecasts for the export sector. Hamburg s labour market should remain very stable, with the number of people in gainful employment increasing again. All in all, Hamburg could achieve real economic growth of more than 2 percent in 2014, thus outperforming the national economy. Customer business remains the focus of our activities Haspa will continue to refine its customer-focused strategy in the Hamburg Metropolitan Region. Private customers are and will remain the foundation of our business. We will continue to expand in the Hamburg Metropolitan Region thanks to our comprehensive services for this customer segment. We also see growth potential in the corporate customer segment, as well as in Private Banking. Result for the year as expected On the whole, net income for the year will probably be higher than in the previous year and will be transferred in full to HASPA Finanzholding in the annual financial statements. The forecasts made in our annual financial statements as at 31 December 2013 and other statements about further development in the current financial year have not changed significantly. We specifically expect net interest income for the current 2014 financial year to be on a par with last year s level and continue to assume that net commission income will rise significantly, also on the back of the contributions accumulated in the first half of the year. A slight rise in total expenses is anticipated this year on account of inter-institutional deposit guarantees but also increased regulatory burdens. Following further very good performance in the first six months, risk provisions for the lending business are expected to rise at a higher level in the second half of the year. Continued strong performance would lead to a significant easing in this respect. Our net revaluation gain from securities is expected to be higher than in the previous year; given the uncertainties in the money and capital markets, this is nevertheless still subject to uncertainty. We expect the return on equity to improve and the cost/income ratio to be marginally lower.

12 10 Haspa 2014 half-yearly financial report Half-yearly financial statements Balance sheet of Hamburger Sparkasse AG Balance sheet of Hamburger Sparkasse AG for the period ended 30 June 2014 Assets in Cash reserve a) Cash on hand 173, ,199 b) Balance with Deutsche Bundesbank 164,430 70, , , Public-sector debt instruments and bills of exchange eligible for refinancing with Deutsche Bundesbank a) Treasury bills and non-interest bearing treasury notes and similar debt instruments issued by public-sector entities b) Bills of exchange 3. Receivables from banks a) Payable on demand 2,007,102 1,883,376 b) Other receivables 1,563,704 1,145,648 3,570,806 3,029, Receivables from customers 29,510,229 29,897, Debentures and other fixed-interest securities a) Money market instruments aa) by public-sector issuers ab) by other issuers b) Bonds and debentures ba) by public-sector issuers 1,924,265 1,724,751 bb) by other issuers 846, ,111 2,770,957 2,649,862 c) Own debentures 2,770,957 2,649, Equities and other non-fixed interest securities 4,369,641 4,300,157 6a. Trading portfolio 148, , Long-term equity investments 57,832 59, Shares in affiliated companies 7,892 13, Fiduciary assets Equalisation claims on the public sector including debentures arising from conversion of equalisation claims 11. Intangible fixed assets a) Internally generated industrial rights and similar rights and assets b) Purchased concessions, industrial and similar rights and assets, 46,803 49,607 and licences in such rights and assets c) Goodwill d) Prepayments 2,361 4,565 49,164 54, Tangible fixed assets 22,508 24, Unpaid contributions to subscribed capital 14. Other assets 12,611 24, Deferred income 11,401 4, Deferred tax assets 17. Excess of plan assets over post-employment benefit liability 18. Deficit not covered by equity Total assets 40,869,767 40,520,640

13 Haspa 2014 half-yearly financial report 11 Half-yearly financial statements Balance sheet of Hamburger Sparkasse AG Equity and liabilities in Liabilities to banks a) Payable on demand 451, ,905 b) With agreed maturity or notice period 4,949,640 4,716,001 5,401,530 5,019, Liabilities to customers a) Savings deposits aa) With agreed notice period of three months 7,071,598 6,484,646 ab) With agreed notice period of more than three months 1,673 2,329 7,073,271 6,486,975 b) Other liabilities ba) Payable on demand 16,150,421 15,534,594 bb) With agreed maturity or notice period 6,322,366 6,616,684 22,472,787 22,151,278 29,546,058 28,638, Securitised liabilities a) Debentures issued 2,270,294 3,218,260 b) Other securitised liabilities 2,270,294 3,218,260 3a. Trading portfolio 54,748 48, Fiduciary liabilities Other liabilities 93, , Deferred income 22,580 21,186 6a. Deferred tax liabilities 7. Provisions a) Provisions for pensions and similar obligations 593, ,619 b) Provisions for taxes 38,271 18,973 c) Other provisions 185, , , , Subordinated liabilities 9. Profit participation capital 10. Fund for general banking risks 502, , Equity a) Subscribed capital 1,000,000 1,000,000 b) Capital reserves 944, ,000 c) Revenue reserves ca) Legal reserve cb) Reserve for shares in a parent or majority investor cc) Reserves provided for by the articles of association cd) Other revenue reserves 217, , , ,000 d) Net retained profits 2,161,000 2,161,000 Total equity and liabilities 40,869,767 40,520, Contingent liabilities a) Contingent liabilities from endorsement of discounted bills of exchange b) Contingent liabilities from guarantees and indemnity agreements 500, ,424 c) Contingent liabilities from the granting of security for third-party liabilities 500, , Other obligations a) Repurchase obligations under sales with an option to repurchase b) Placement and underwriting commitments c) Irrevocable loan commitments 2,715,461 2,820,769 2,715,461 2,820,769

14 12 Haspa 2014 half-yearly financial report Half-yearly financial statements Income statement of Hamburger Sparkasse AG Income statement of Hamburger Sparkasse AG for the period from 1 January to 30 June 2014 All figures stated in Interest income from a) Lending and money market transactions 550, ,282 b) Fixed interest securities and registered government debt 8,053 7, , , Interest expense 274, , , , Current income from a) Equities and other non-fixed interest securities 59,037 57,167 b) Long-term equity investments 1, c) Shares in affiliated companies 980 1,041 61,025 59, Income from profit pooling, profit transfer, or partial profit transfer agreements 5. Commission income 138, , Commission expenses 7,937 8, , , Net trading income or expense Other operating income 18,584 13, , , General and administrative expenses a) Personnel expenses aa) Wages and salaries 143, ,949 ab) Social security, post-employment and other employee benefit costs 32,071 32, , ,238 b) Other administrative expenses 153, , , , Depreciation, amortisation and write-downs of tangible and 8,836 8,713 intangible fixed assets 11. Other operating expenses 42,183 29, Write-downs of and valuation allowances on receivables and certain securities, 22,986 53,630 and additions to loan loss provisions 13. Income from reversals of write-downs of receivables and certain securities and from the reversal of loan loss provisions 22,986 53, Write-downs of and valuation allowances on other equity investments, 75 shares in affiliated companies and securities classified as fixed assets 15. Income from reversals of write-downs of other equity investments, shares in affiliated companies and securities classified as fixed assets Cost of loss absorption 17. Additions to/withdrawals from the fund for general banking risks 18. Result from ordinary activities 91,416 85, Extraordinary income 20. Extraordinary expenses 5,258 5, Extraordinary result 5,258 5,258

15 Haspa 2014 half-yearly financial report 13 Half-yearly financial statements Income statement of Hamburger Sparkasse AG All figures stated in Taxes on income 46,158 42, Other taxes not included in item 11 46,158 42, Income from loss absorption 25. Profit transferred on the basis of profit pooling, profit transfer, 40,000 37,500 or partial profit transfer agreements 26. Net income for the financial year 27. Retained profits/losses brought forward 28. Withdrawals from revenue reserves a) from the legal reserve b) from the reserve for treasury shares c) from the reserves provided for by the articles of association d) from other revenue reserves 29. Appropriation to revenue reserves a) to the legal reserve b) to the reserve for treasury shares c) to the reserves provided for by the articles of association d) to other revenue reserves 30. Net retained profits

16 14 Haspa 2014 half-yearly financial report Half-yearly financial statements Notes Notes Accounting standard and other disclosures The half-yearly financial report of Hamburger Sparkasse AG as at 30 June 2014 was prepared in accordance with the requirements of the German Commercial Code (Handelsgesetzbuch) and the requirements of the German Ordinance on Accounting for Banks and Financial Services Institutions (Verordnung über die Rechnungslegung der Kreditinstitute und Finanzdienstleistungsinstitute), taking into account the requirements of the German Stock Corporation Act (Aktiengesetz). All accounting policies that were applied to the annual financial statements for the year ended 31 December 2013 of Hamburger Sparkasse AG were retained. The interim financial statements and the interim management report as at 30 June 2014 have not been reviewed by an auditor or audited pursuant to section 317 German Commercial Code. The income taxes were determined on the basis of the taxable income as at 30 June Hamburg, 26 August 2014 The Board of Management Dr. Harald Vogelsang Frank Brockmann Axel Kodlin Bettina Poullain Jürgen Marquardt

17 Haspa 2014 half-yearly financial report Half-yearly financial statements Responsibility statement 15 Responsibility statement To the best of our knowledge, and in accordance with the applicable reporting principles for interim financial reporting, the 2014 half-yearly financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of Hamburger Sparkasse AG in accordance with German accepted accounting principles, and the interim management report includes a fair review of the development and performance of the business and the position of Hamburger Sparkasse AG, together with a description of the material opportunities and risks associated with the expected development of Hamburger Sparkasse AG for the remaining months of the financial year. Hamburg, 26 August 2014 The Board of Management Dr. Harald Vogelsang Frank Brockmann Axel Kodlin Bettina Poullain Jürgen Marquardt

18 16 Haspa 2014 half-yearly financial report Publishing information Hamburger Sparkasse AG Ecke Adolphsplatz / Großer Burstah Hamburg, Germany Telephone +49 (0) Fax +49 (0) haspa@haspa.de Concept and design CAT Consultants, Hamburg, Germany

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