EANS-News: DVB Bank SE
Results for the first half of 2010: momentum picking up
for DVB
Frankfurt am Main (euro adhoc) -
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Financial Figures/Balance Sheet
04 August 2010
Based on preliminary figures, consolidated net profit before taxes amounted to EUR 59.0 million for the first half of 2010, down 3.8% year-on-year.
Wolfgang F. Driese, CEO and Chairman of the Board of Managing Directors, commented on DVB's results: "Following the slow start seen during the first quarter, we are pleased with our results for the first six months. The development in net interest income after allowance for credit losses is particularly positive: in fact, it was the best half-year figure for the last five years. Net fee and commission income was the second highest during that period. This demonstrates that we are able to deliver sustainable returns to our shareholders, even during difficult market phases.
Even though new business is increasing again, reflecting notable growth in global transport volumes, we still maintain a particularly selective stance, as volatility on transport markets remains high. Driven by the large number of new deliveries of ships and aircraft - amongst other factors - these markets are set to stay volatile. Hence, it is too early to sound the 'all clear' as far as risks are concerned. Nevertheless, we are optimistic that we will be able to post good results for the year as a whole."
At EUR 139.9 million, total income for the first half of 2010 was up 1.2 % year-on-year.
Net interest income rose by 26.3 % in the first half of 2010, to EUR 109.5 million (H1 2009: EUR 86.7 million). Two factors contributed to this positive result: firstly, DVB was successful in virtually eliminating the costs incurred due to money market distortions (which had burdened the previous year's results); secondly, the Bank's margins generated on new business remained high. Net allowance for credit losses amounted to EUR 0.5 million in the first half of 2010 (H1 2009: EUR 10.7 million). Accordingly, net interest income after allowance for credit losses rose by 43.4%, from EUR 76.0 million to EUR 109.0 million.
DVB's fee and commission-based business generates loan commissions from new Transport Finance exposures, as well as advisory fees. New credit commitments, which had been at a low level during the first quarter, clearly rose during the second quarter. The net fee and commission income figure of EUR 41.3 million for the first half of 2010 was 18.9% below the record figure posted one year ago (H1 2009: EUR 50.9 million).
The net result 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) was negative, at EUR -14.4 million (H1 2009: 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.
General administrative expenses rose by 5.1% to EUR 80.9 million. Staff expenses were up 7.8%, to EUR 48.1 million, due to higher provisions for increased expenditure. Non-staff expenses were up marginally, to EUR 32.8 million (+1.2%).
DVB reported total assets of EUR 20.3 billion as at 30 June 2010, up 17.3% from 31 December 2009 (EUR 17.3 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 rose by 12.1%, from EUR 17.3 billion to EUR 19.4 billion. In US dollar terms, however, customer lending declined by 4.8%, to USD 23.7 billion. The divergence in portfolio developments was due to fluctuations in the euro/US dollar exchange rate: since the end of 2009, the euro has weakened against the US dollar, from USD 1.44 to USD 1.23 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 slightly, by 0.4 percentage points, to 12.8% (H1 2009: 13.2%). The CIR (excluding allowance for credit losses) rose by 5.9 percentage points to 57.6% (H1 2009: 51.7%).
DVB's tier 1 ratio stood at 13.7% (31 December 2009: 14.2%), and the total capital ratio was 16.8% (31 December 2009: 18.0%).
The half-yearly financial report 2010 reviewed by auditors will be published on 13 August 2010.
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, Aviation, and Land Transport. 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).
Contact for this press release: Elisabeth Winter, Manager, Investor
Relations Phone +49699750-4329
{Elisabeth.winter@dvbbank.com}[HYPERLINK:
mailto:Elisabeth.Winter@dvbbank.com]end of announcement euro adhoc
Further inquiry note:
Elisabeth Winter
Investor Relations
Tel: +49 (0)69-97504-329
E-Mail: elisabeth.winter@dvbbank.com
Branche: Banking
ISIN: DE0008045501
WKN: 804550
Börsen: Stuttgart / free trade
Düsseldorf / free trade
Frankfurt / regulated dealing/general standard