BayernLB achieved a pre-tax result of 779 million EUR in the first half of the 2026 financial year, an increase compared to the previous year's figure of 745 million EUR. The consolidated net profit after tax reached 571 million EUR, compared to 552 million EUR in the first half of 2025. This development is primarily attributable to a balanced business model and the performance of its subsidiary DKB. BayernLB is positioned as a reliable financial partner with a capitalisation of over 19 per cent, particularly in an environment characterised by geopolitical and economic challenges.
The BayernLB Group's net interest income rose significantly to 1,490 million EUR, up from 1,256 million EUR in the previous year. This increase resulted from higher interest rate levels and an expansion of the lending and deposit business. Net commission income, at 267 million EUR, was almost at the previous year's level of 271 million EUR. The lower earnings from DKB's card business due to expiring co-branding partnerships were offset by higher earnings from lending.
Risk provisions and capitalisation
The Group's risk provisions were reduced to net expenses of 90 million EUR, compared to 100 million EUR in the same period last year. At BayernLB Bank, expenses fell to 13 million EUR (previous year: 50 million EUR), while DKB had to incur 77 million EUR, two-thirds of which related to corporate clients. The NPL ratio, which reflects the proportion of non-performing loans to the total loan volume, stood at 1.1 per cent. The stock of Post Model Adjustment (PMA) for provisions amounted to 413 million EUR as of 30 June 2026, remaining stable.
Fair value income increased to 182 million EUR, reflecting market value changes in the lending and trading business. Other income components were negatively impacted by -173 million EUR due to valuation losses from hedge accounting and provisions for legal disputes. The Group's administrative expenses rose to 849 million EUR. This is attributable to strategic personnel build-up at BayernLB Bank and investments in business growth and IT infrastructure at DKB. The BayernLB Group's balance sheet total increased to 288.6 billion EUR.
Segment development and outlook
- —The Real Estate & Savings Banks/Financial Institutions segment increased its pre-tax profit to 177 million EUR (previous year: 142 million EUR), driven by higher net interest income and reduced risk provision requirements in the real estate business.
- —The Corporates & Markets segment achieved a pre-tax profit of 70 million EUR, largely on par with the previous year. Net interest and commission income in the corporate client business remained stable here.
- —DKB recorded an above-average pre-tax profit of 662 million EUR, mainly due to a significant increase in net interest income driven by business volume expansion.
The Group's capitalisation remains at a high level with a CET1 ratio of 19.8 per cent (excluding the half-year result). The cost-income ratio was 48.1 per cent. Return on equity showed stable development at 11.5 per cent. BayernLB confirms its forecast for the full year 2026 and continues to see itself as an efficient and reliable financial partner for its clients.
