SRP looks at the interim results of LBBW and Dekabank, the two main issuers of structured investment products in Germany.

Landesbank Baden-Württemberg (LBBW) had a share of almost fifty percent of the German market in the first half of 2019, according to SRP data. The bank issued 1,467 structured products worth an estimated €2.3 billion between January 1 and June 30 2019, slightly down in volumes from the €2.4 billion collected from 1,216 products in the previous semester, but significantly up compared to the 863 products with sales of €1.4 billion in half-year 2018.

Nine hundred and forty three of the bank’s products in the period were linked to a single share, of which Daimler (157 products), Basf (124) and Axa (110) were the most frequently used. A further 320 structures were tied to a single index, including the Eurostoxx 50 (269 products), DivDax (35), and Stoxx Europe 600 Oil & Gas (10) while the bank also launched 130 credit-linked notes and 46 products linked to the interest rates.

LBBW posted a profit before tax of €319m in the first half of the 2019 financial year, exceeding the previous year’s figure by €36m. Net interest income, at €811m was slightly higher than the previous year (€796m) while net fee and commission income increased by €17m to €279m in the first half of 2019 which saw the securities and underwriting business performing ‘particularly well’ from issuing debt securities.

The bank issued two large volume green bonds in H1 2019 while also expanding its range of sustainable products for private customers.

Dekabank, with a 26% share of the market, was the second most active provider in Germany, collecting €1.3 billion from 943 products in half-year 2019 (H1 2018: €1.2 billion from 715 products).

Like LBBW, the majority of Dekabank’s products were tied to a single share or single index, with Daimler (68 products), Axa (42) and Basf (37), once again the shares most in demand, and the Eurostoxx 50 (203 products) the preferred index of the German investor. The bank also launched 26 products linked to a mutual fund including 17 structures on Dekafonds CF.

In the first half of 2019, Dekabank generated an economic result of €223.1m, on par with previous year’s level of €222.6m.

As at June 30 2019, the group’s total customer assets stood at €297.7 billion, up from €275.9 billion at year-end 2018. Assets included certificates worth €22.3 billion (December 31 2018: €20.4 billion) and exchange-traded funds (ETFs) worth €9.2 billion (€8.6 billion).

The bank’s ETF product portfolio is also being developed further in line with an all-round product and sales strategy, including enhancement products, while the range of certificates has been expanded further to strengthen the universe of products and underlyings, according to the bank.

Net sales in the securities division came to €1.2 billion at the end of the first half of 2019 (H1 2018: €5.1 billion). Sales of equity funds improved compared with the first half of 2018. On the other hand, with net sales totalling €–300m, ETFs fell short of the previous year's figures for both ETF equity and ETF bond funds.

The CEO of Dekabank, Michael Rüdiger (pictured), will step down from his post at the end of 2019 at his own request and leave the bank. Deputy CEO, Dr Georg Stocker, has been appointed as his successor with effect from January 1 2020.  

Click the link to view the half-yearly financial report 2019 for LBBW and Dekabank.