Profit from ordinary activities of EUR 331 million for the first half-year 

Nominal volume of the portfolio reduced to EUR 102.4 billion 

Total assets down 3.7 percent to EUR 176.8 billion since the beginning of the year 

Progress seen at DEPFA 

In the first six months of 2015, the Federal government’s winding-up institution, FMS Wertmanagement (FMS-WM), continued the successful unwinding of its remaining portfolio in a manner that maximizes its value. FMS-WM generated a profit from ordinary activities of EUR 331 million (H1 2014: EUR 376 million). After tax, the profit for the first half-year was EUR 262 million (previous year: EUR 331 million). 

The nominal volume of the portfolio decreased by 3.7 percent to EUR 102.4 billion in the first six months of the year. Since the portfolio was transferred from the HRE Group effective 1 October 2010, an aggregate amount of EUR 73.3 billion (41.7 percent) of the portfolio has been wound up. 

“The sometimes highly complex and elaborate restructurings our portfolio managers were able to realize in recent years are now paying off in the wind-up process,” said Dr Christian Bluhm, Executive Board Spokesman of FMS-WM. “On top of that, FMS-WM also continues to benefit from positive market trends.” 

Total assets of FMS-WM decreased by 3.7 percent to EUR 176.8 billion since the beginning of the year. 

At EUR 263 million, net interest income in the first half of 2015 was down 5.1 percent year-on-year, due in particular to the continued unwinding of the portfolio. 

Net commission income, which largely comprises commission income from lending and derivatives transactions, amounted to EUR 38 million in the first half-year (H1 2014: EUR 31 million). 

General and administrative expenses totaled EUR 103 million in the first half of 2015 (H1 2014: EUR 119 million). This figure includes expenses of EUR 71 million paid for services provided by FMS Wertmanagement's service entity and external service providers. The decline in administrative expenses is primarily due to lower legal and consulting costs. 

In the first six months of 2015, the balance of the items dominated by valuations and sales (net expenses for risk provisions and net income from investments) once again was positive at EUR 182 million (H1 2014: EUR 198 million). This is primarily attributable to favorable market trends and associated reversals of valuation allowances as well as sales successes. 

On the funding side, the total new issuance volume across all capital market instruments in the first half of 2015 amounted to EUR 8.3 billion (H1 2014: EUR 7.0 billion). 

At the DEPFA Group, which was transferred from the HRE Group to FMS-WM in December 2014, the loss before taxes was reduced year-on-year from EUR 101 million to EUR 61 million in the first half of 2015. “Some of the measures initiated to improve the earnings of DEPFA have already been effective, especially in the second quarter of 2015”, said Executive Board Spokesman Dr Bluhm. 

For 2015 as a whole, the Executive Board again expects FMS-WM to post a positive result from ordinary activities. 

FMS Wertmanagement was established in July 2010 as the Federal government’s winding-up institution for the purpose of taking over and unwinding the HRE Group’s risk positions and non-strategic operations in ways aimed at minimizing losses. Favorable funding conditions in the capital markets are key to this endeavor. The Federal Republic of Germany is the sole owner of FMS Wertmanagement via the Financial Market Stabilisation Fund – FMS (SoFFin). 

If you have any questions, please do not hesitate to contact Andreas Henry, Head of Communications, at +49 89 9547627 250 or by email at This email address is being protected from spambots. You need JavaScript enabled to view it..