Münchener Hypothekenbank concluded the first half of 2026 with a positive balance sheet. In an environment marked by geopolitical tensions, increased energy prices and economic uncertainties, the bank was able to maintain its profitability and increase new business. Dr. Holger Horn, CEO of Münchener Hypothekenbank, emphasised that the bank is maintaining its course and stands on a robust foundation with strong earning power.
The volume of new lending increased by 15 per cent during the reporting period, reaching EUR 1.75 billion, compared to EUR 1.5 billion in the same period last year (30.06.2025). In private residential property finance, the commitment volume amounted to EUR 0.9 billion. This stability was achieved despite weak new construction activity in the market. New business in commercial property finance rose to EUR 0.85 billion, compared to EUR 0.6 billion in the first half of 2025. A large portion of this volume resulted from follow-up and refinancing deals, as investors continued to adopt a cautious stance.
Refinancing and Earnings Key Figures
Refinancing volume in the money and capital markets reached approximately EUR 2.5 billion. This was contributed to by two benchmark issues of mortgage covered bonds, each amounting to EUR 500 million. These issues met with very high investor demand and were placed at historically low issuance spreads. The bank's earnings situation proved stable. Net interest income amounted to EUR 247.9 million (30.06.2025: EUR 260.4 million). Commission expenses for the first half of the year were EUR 26.0 million (30.06.2025: EUR 29.1 million). This resulted in net interest and commission income of EUR 221.8 million (30.06.2025: EUR 231.3 million).
Administrative expenses increased to EUR 91.7 million (30.06.2025: EUR 86.7 million). Total risk provisions in lending business were lower at EUR 37.6 million than in the previous year (30.06.2025: EUR 50.6 million). For the full financial year, the bank plans risk provisions at the previous year's level. Operating profit after risk provisions improved to EUR 93.5 million, up from EUR 92.0 million in the comparable period of 2025. After deducting tax expenses of EUR 35.8 million, the pro-rata net profit for the year amounted to EUR 57.8 million (30.06.2025: EUR 56.6 million).
Capitalisation and Outlook
The capitalisation of Münchener Hypothekenbank continues to show a solid base. As at 30 June 2026, the Common Equity Tier 1 ratio was 20.7 per cent (31.12.2025: 21.0 per cent). The total capital ratio was 27.8 per cent (31.12.2025: 28.0 per cent). The bank expresses optimism regarding the achievement of its earnings and new business targets for the full year. Nevertheless, it is emphasised that future prospects are difficult to assess due to ongoing economic and geopolitical uncertainties and their potential impact on the property and property finance markets.
