DVB Bank AG ("DVB"), the Frankfurt-based bank which specialises in transport finance, reports a significant improvement in profitability for the third quarter of 2005: a continuation of the trend established during the first two quarters of the current financial year. Operating profit excluding loan loss provisions registered a 77.8% increase to €66.6 million for the nine months to 30 September 2005 compared to the corresponding period of 2004: an outcome that exceeds the Bank's total profitability in 2004. Wolfgang F. Driese, Chairman of the Board of Managing Directors of DVB Bank AG, commented: "We are pleased to report excellent results for the nine months to 30 September 2005 which clearly indicate that our shareholders can look forward to a strong profit outcome for the full year. Such results, in the wake of the Board´s reconstruction of the Bank, are particularly satisfying because they serve to illustrate the prospective growth potential inherent in our strategic focus on the international Transport Finance market. Following the successful completion of our share capital increase, DVB is well positioned to achieve further profitable growth during the forthcoming year. The success of the Bank's corporate finance activities reflects the ongoing demand from clients for our specialised financial input and, through new products such as Securitisation, we are continuing to increase our range of services." Ordinary income, which includes net interest income, net commission income and net profit on financial operations, amounted to €140.2 million (+ 33.7%) for the first nine months of 2005. Net interest income registered a 17.4% increase from €76.3 million to €89.6 million. This advance in interest income reflects a continuation of new high margin loan business in an exceedingly buoyant market and the returns achieved by our Group Investment Management. Net commission income achieved a notable 53.9% improvement from €31.3 million to €48.2 million. This highly positive result reflects numerous lead mandates in transport finance together with some large consultancy mandates. Administrative expenses rose 7.2% to €73.5 million. This increase reflects the accrual of variable bonuses in relation to the surpassing of business targets under the current bonus scheme. Profit from ordinary activities in respect of the nine months to 30 September 2005 rose 73.6% to €70.8 million. Total assets rose 17.4% to €10.86 billion compared with €9.25 billion as at 31 December 2004. Customer lending (the aggregate of loans and advances to customers, guarantees and indemnities, irrevocable loan commitments and securities held as a result of customer business) increased 27.1% from €8.16 billion to €10.37 billion. This expansion reflects the continued growth of new loan business and the relative strength of the US dollar versus the Euro. The return on equity improved to 26.7% for the nine months to 30 September 2005, while the cost/income ratio registered a further decrease, down to 49.9% compared with 61.3% for the corresponding period of 2004.