EANS-News: DVB Bank SE
Results for the first half of 2009: DVB posts good
consolidated net profit before taxes, in a challenging environment and despite
negative special effects
Frankfurt am Main (euro adhoc) -
Corporate news transmitted by euro adhoc. The issuer/originator is solely responsible for the content of this announcement.
Financial Figures/Balance Sheet
Consolidated net profit before tax declined to EUR 61.3 million for the first half of 2009, down 28.0% year-on-year. Excluding additional expenses of EUR 19.6 million resulting from money market distortions, the year-on-year decline would only have amounted to a single-figure percentage.
Wolfgang F. Driese, CEO and Chairman of the Board of Managing Directors, commented on DVB´s consolidated results for the first half of 2009:
"Even though our results are down compared to the same period of the previous year, we are satisfied with these figures, considering the current economic environment. The consequences of the ongoing severe crisis affecting financial markets and the global recession only became evident during the second half of 2008. Accordingly, the financial statements for the first half of 2008 were still unburdened by the evolving global economic crisis - in contrast, the global transport sector has been in the firm grip of recession since the first half of 2009.
Through extensive efforts, DVB managed to steadily - albeit not completely - mitigate the impact on its results of the serious money market distortions. Since the outbreak of the financial markets crisis in the autumn of 2008, market distortions have created increasing burdens on existing loan agreements - primarily caused by the divergence of the LIBOR reference rate from current interbank interest rates, and also due to increased demand amongst clients for loans revolving on a one-month basis. To a considerable extent, DVB was able to adjust the interest conditions of client agreements, amending the calculation base from distorted LIBOR reference rates to current interbank rates. In addition, we were able to reset most exposures with a one-month rollover to a quarterly frequency, in line with usual market practice.
Our new business is strong - and given the withdrawal of some competitors, I am optimistic that we will be able to further expand our market position."
At EUR 138.3 million, total income for the first half of 2009 was down 11.9% year-on-year.
Net interest income of EUR 86.7 million for the first half of 2009 only fell short of the previous year's level of EUR 90.8 million by 4.5%, a marked slowdown of the decline which had stood at -28.7% for the first quarter of 2009. Continued global economic troubles, which have increasingly burdened the transport sector in 2009, required a net EUR 10.7 million increase in allowance for credit losses (H1 2008: net release of EUR 11.7 million). Net interest income after allowance for credit losses declined by 25.9%, from EUR 102.5 million to EUR 76.0 million.
DVB´s fee and commission-based business generates loan commissions from new Transport Finance exposures, as well as advisory fees. The net fee and commission income generated continued to show strong momentum, increasing by 44.2%, to EUR 50.9 million (H1 2008: EUR 35.3 million) - once again demonstrating DVB's strong position in structuring complex Transport Finance projects.
Net income from financial instruments in accordance with IAS 39 (comprising net trading income, the hedge result, the result from the application of the fair value option, the result from derivatives entered into without intention to trade, and net income from investment securities) rose from EUR 3.2 million to EUR 4.4 million. Against the background of the financial markets crisis, the figure particularly reflects increased volatility on foreign exchange and interest rate markets. Net income from investment securities includes a further partial write-down of EUR 7.4 million on a bond issued by an Icelandic bank, which DVB originally held as a liquidity reserve for payments.
General administrative expenses rose by 7.2% to EUR 77.0 million. Staff expenses increased by 7.2%, to EUR 44.6 million, while non-staff expenses were up by 10.5%, to EUR 30.5 million.
DVB reported total assets of EUR 17.89 billion as at 30 June 2009, showing a slight increase of 3.0% (31 Dec 2008: EUR 17.38 billion). DVB´s nominal customer lending comprises the aggregate of loans and advances to customers, guarantees and indemnities, and irrevocable loan commitments. In euro terms, nominal customer lending declined by 1.0%, from EUR 18.49 billion to EUR 18.31 billion. In US dollar terms, customer lending volume in fact increased by 0.6%, to USD 25.89 billion. The diverging portfolio growth rates were due to slight fluctuations in the euro/US dollar exchange rate: since the end of 2008, the euro has strengthened against the US dollar, from USD 1.39 to USD 1.41 as at the reporting date.
DVB's two strategic indicators, return on equity (RoE) before taxes and the cost/income ratio (CIR) developed as follows: RoE before taxes was down 12.1 percentage points, to 13.2% (H1 2008: 25.3%), due to the impact of money market distortions. The CIR rose by 2.2 percentage points to 51.7%, (H1 2008: 49.5%).
Calculated in accordance with Basel II, DVB's tier 1 ratio rose to 14.4% (31 December 2008: 13.9%), and the total capital ratio increased to 19.0% (31 December 2008: 18.2%).
You will find more detailed information in our Group Half-Yearly Financial Report as of 30 June 2009 on our homepage www.dvbbank.com in the Investor Relations section.
Note to Editors: DVB Bank SE, headquartered in Frankfurt/Main, Germany, is the leading specialist in the international Transport Finance business. The Bank offers integrated financing solutions and advisory services in respect of Shipping Finance, Aviation Finance, and Land Transport Finance. The Bank operates out of offices in Frankfurt/Main, Hamburg, London, Cardiff, Rotterdam, Bergen/Oslo, Piraeus, Zurich, Singapore, Tokyo, New York and Curaçao. DVB Bank SE is listed at the Frankfurt Stock Exchange (ISIN: DE0008045501).
end of announcement euro adhoc
Further inquiry note:
Elisabeth Winter, Manager Investor Relations
Phone +49 69 9750-4329
Elisabeth.winter@dvbbank.com
Branche: Banking
ISIN: DE0008045501
WKN: 804550
Börsen: Stuttgart / free trade
Düsseldorf / free trade
Frankfurt / regulated dealing/general standard