Berlin Hyp concluded the 2024 financial year with a significant improvement in profitability and a rise in new lending volume. The bank reported profit before income tax of €527 million, more than four times higher than the previous year. This increase was partly driven by the reversal of provision reserves in connection with the bank’s ongoing integration into Landesbank Baden-Württemberg (LBBW). Despite a challenging economic and political environment, Berlin Hyp expanded its operating business and continued to implement strategic initiatives. New lending rose to €6.9 billion, compared to €6.5 billion in 2023. This included €2.6 billion in new financing and €4.3 billion in extensions. Germany remained the primary market for new business, accounting for 66% of lending, while international markets—particularly the Netherlands, Poland, and France—gained importance. Berlin Hyp also strengthened its collaboration with Germany’s savings banks. In 2024, it maintained active relationships with 179 institutions, over half of which used the ImmoDigital platform to access the bank’s investment products. €1.2 billion in new lending was generated through these partnerships. Progress was made in the bank’s ongoing transformation into a centre of expertise for commercial real estate financing within the LBBW Group. Integration of corporate functions and core systems proceeded according to plan. Berlin Hyp also continued to advance the digitalisation of key processes and system upgrades. Net interest income increased significantly to €559.3 million, up from €498.3 million in 2023, primarily due to growth in mortgage lending and income from interest rate risk management. Net commission income declined slightly to €16.3 million, in line with the volume of contracted lending. Operating expenses rose to €215.1 million from €207 million in the previous year. Higher personnel costs and increased depreciation, driven by integration-related activities, were partially offset by lower general operating expenses, including the elimination of the €16.4 million bank levy previously paid in 2023. Risk provisioning saw a net reversal of €165.3 million, compared to a net allocation of €152.1 million the year before. This was mainly due to the reversal of provision reserves associated with the integration into LBBW. Valuation allowances on individual real estate positions were made, but remained lower than the previous year. In contrast, the securities portfolio recorded a valuation loss of €2.4 million, compared to a gain of €16.8 million in 2023. The bank’s capital position remained stable, with no further allocations made to the general banking risk fund, which remains at €800 million. After taxes of €82.3 million, the profit transferred to LBBW amounted to €444.7 million, up from €75 million in net income the previous year. Berlin Hyp’s balance sheet total increased to €36.4 billion, up €0.9 billion from the end of 2023. The common equity tier 1 ratio stood at 14.2%, and the total capital ratio was 15.1%. The cost-income ratio improved to 37.1%, down from 40.0% in 2023. Looking ahead, Berlin Hyp expects modest economic growth globally, with stagnation anticipated in Germany due to structural challenges and geopolitical uncertainties. Despite this, the bank forecasts an increase in lending activity in 2025 and anticipates renewed interest in the real estate investment market, especially from institutional capital. The integration of Berlin Hyp with LBBW’s commercial real estate operations is scheduled for completion in August 2025. Following the merger, all real estate financing under LBBW will be consolidated under the Berlin Hyp brand. The bank aims to become a central hub for commercial real estate expertise in Europe, offering clients access to a broader product range and services through the combined strengths of both institutions. “We are entering a new phase for Berlin Hyp,” said Sascha Klaus, Chair of the Board of Management. “With greater market presence and flexibility, supported by LBBW’s full range of offerings, we are well positioned to deliver value for our clients and partners in the savings bank sector.”