Helaba reported a pre-tax consolidated profit of EUR 194 million for the first six months of the 2026 financial year. This represents a decline compared to the same period last year, when EUR 458 million was achieved. The main causes of this development are burdens in the commercial real estate business and a reduced fair value result. Thomas Groß, Chairman of the Helaba Executive Board, stated that this half-year result did not meet expectations, as the challenging macroeconomic and capital market conditions significantly impacted the commercial real estate business and reduced the fair value result.
Despite the decline in earnings, Mr Groß highlighted the positive dynamic development of new business and net commission income, which confirmed the bank's strategic orientation. Targeted portfolio management also enabled the NPL ratio to be reduced. The current earnings situation is also influenced by ongoing geopolitical upheavals, the associated rise in market interest rates, and persistently subdued economic development in Germany. Operating income fell by 8.9 percent to EUR 1,368 million, while net interest income moderately declined by 6.4 percent to EUR 770 million.
Net commission income, however, showed a positive development and increased by 10.0 percent to EUR 319 million, partly due to lending and guarantee business. Valuation effects resulting from rising interest rates and a temporary reluctance in relevant customer business led to a 67.1 percent decline in the fair value result to EUR 54 million. In non-interest-bearing business, the result from investment properties held, particularly from GWH's residential properties, grew by 22.2 percent to EUR 163 million. Administrative expenses increased by 6.6 percent to -EUR 975 million due to growth investments and tariff and inflation-related cost increases. Net additions to risk provisions rose significantly by 53.0 percent to -EUR 198 million, primarily due to increased burdens from the real estate business, also taking geopolitical risks into account.
The CET1 ratio stood at 15.8 percent, thus exceeding regulatory requirements. Return on Equity was 3.5 percent. The Cost-Income Ratio reached 70.8 percent. Other income decreased by 26.6 percent to EUR 64 million. Consolidated profit after tax fell to EUR 148 million. The consolidated balance sheet total increased slightly to EUR 205.0 billion as of 30 June 2026.
Within the business segments, the Real Estate segment recorded a pre-tax result of -EUR 26 million, following a positive figure in the previous year. Additions to risk provisions in this segment increased significantly to -EUR 113 million. Medium- and long-term new business developed positively with EUR 3.9 billion. The Corporates & Markets segment achieved a pre-tax result of EUR 58 million, burdened by lower trading results and increased risk provisions and administrative expenses. In the Retail & Asset Management segment, pre-tax profit rose to EUR 209 million, while the Promotion Business segment generated a result of EUR 21 million, primarily shaped by WIBank. The Other segment (including consolidation) closed at -EUR 69 million, driven by a decline in net interest income and the fair value result, as well as burdens from the realignment of OFB's real estate project business.
For the full year 2026, Helaba expects a pre-tax profit of approximately EUR 500 million. Chairman of the Executive Board Mr Groß reaffirmed the medium-term goal of increasing profit to EUR 1 billion before tax within the next five years, emphasising the continuous refinement of investment focus, acceleration of growth initiatives, and the introduction of consistent cost-saving measures.
