DHL 2005 Annual Report Download - page 59

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e corporate division’s prot from operating activities (EBIT) for scal year 2005 in-
creased signicantly by 73.1% from €182 million previously to €315 million. e prior-
year gure included goodwill amortization of €99 million. e return on sales thus in-
creased from 2.7% in the previous year to the current level of 4.0%.
Postbank results improved again
e results of the FINANCIAL SERVICES Corporate Division and of Postbank for 2004
have been adjusted for the eects of a change in accounting policy adopted in 2005.
e corporate division generated income of €7,272 million in 2005 (previous year:
€7,349 million). Income from banking transactions comprises income from interest,
fees and commissions, and trading transactions; it is equivalent to an industrial com-
pany’s revenue.
e corporate division increased its earnings again: thanks to Postbank’s continued healthy
operating performance, the prot from operating activities (EBIT) in the corporate divi-
sion rose by 10.6% from €714 million to €790 million.
In the period under review, Postbank was able to increase its total income – balance sheet-
related revenues and net fee and commission income – by a substantial 5.9% to €2,831
million (previous year: €2,674 million). Balance sheet-related revenues – net interest in-
come, net trading income and net income from investment securities – increased by 3.4%
in the year under review to €2,132 million (previous year: €2,062 million). Despite the
historically low level of interest rates during the course of the year, net interest income
improved by 6.9% year-on-year to €1,675 million. At €252 million, net income from in-
vestment securities was 15.2% below the prior year. Net trading income increased by 3.5%
to €205 million.
Net fee and commission income developed particularly well, rising by 14.2% year-on-
year to €699 million. is was partly due to the fact that the new Transaction Banking
Business Division was included for only part of the previous year. However, increased
sales of products with a high advisory and consulting content and the new charging struc-
ture for checking accounts also made a positive contribution to this performance. e
proportion of total income accounted for by net fee and commission income rose from
22.9% to 24.7%.
e allowance for losses on loans and advances for the credit business rose by 10.8%,
and thus by less than the rate of growth in customer credits. Encouragingly, administra-
tive expenses remained virtually unchanged at €1,886 million, despite the takeover of the
payment transaction divisions of Dresdner Bank and Deutsche Bank, during the course of
2004 – these were included for only part of that year – and despite our acquisition of the
London branch of BHF on January 1, 2005.
Net other operating income and expenses in the year under review amounted to €–21 mil-
lion (previous year: €28 million). is item included the reversal of provisions for the
Postal Civil Service Health Insurance Fund and the recognition of provisions for forth-
coming integration measures.
Item 5 in the “Notes” section
Deutsche Post World Net
55
Revenue and Earnings Development
Group Management ReportConsolidated Financial StatementsAdditional Information