DVB Bank AG ("DVB"), the Frankfurt-based bank which specialises in transport finance, reports a significant 43.5% increase in operating profit excluding loan loss provisions to €33.3 million for the six months to 30 June 2005: a mid-year result that reflects a continuation of the positive business trend experienced during the first quarter. Ordinary income, which includes net interest income, net commission income and net profit on financial operations, amounted to €81.8 million (+ 20.8%) in the first half of 2005. Net interest income registered a 6.3% increase from €51.0 million to €54.2 million. Net commission income achieved a notable 32.4% improvement from €18.8 million to €24.9 million.  Administrative expenses at €48.4 million showed a 5.0% increase compared with €46.1 million for the corresponding period of 2004. This increase reflects the accrual of variable bonuses in relation to the surpassing of business targets under the present bonus scheme and the appointments of additional specialists in various areas of transport finance in order to facilitate the ongoing growth of DVB´s business. Other administrative expenses remained unchanged. There were no net loan loss provisions in respect of the first half of 2005 and, in the event, DVB was able to release loan loss provisions of €1.7 million. Profit from ordinary activities in respect of the six months to 30 June 2005 rose 42.6% to €33.8 million. Commenting on the interim results, Wolfgang F. Driese, Chairman of the Board of Managing Directors of DVB Bank AG, said: "I am delighted to report an excellent advance in profitability for the first half of 2005 during which we continued to reap the benefits of high margin new business and considerably enhanced demand for our corporate finance services. This is an exceedingly satisfying performance and although the second half of 2005 may not emulate the spectacular growth rate achieved during the first six months, we are confident that shareholders can look forward to a strong profit outcome for the full year. Such confidence is based on the assumption that the healthy development of passenger and freight volumes will continue throughout all major transport markets. Current indications augur well but crude oil prices continue to give cause for concern bearing in mind the fact that ultra high oil prices will serve to slow down global GDP growth and hence transport growth. During the months ahead we will continue to grow our core business with specific focus on the expansion of our corporate finance services and on the introduction of new financial products. Such expansion will, of course, be conducted within the framework of the Banks customary approach to risk management." Total assets rose 11.0% to €10.27 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 18.9% from €8.16billion to €9.70billion. The increase in customer lending by €1.54 billion is equally resulting from new business and a stronger US dollar. Shipping Finance represented 53.0% of the overall lending portfolio compared with 52.6% at year-end 2004. Aviation Finances share of the overall lending portfolio grew from 27.0% at year-end 2004 to 29.2%. Land Transport Finances portfolio share decreased from 11.0% to 9.5%, while Transport Infrastructures share declined from 6.4% to 5.9%. Return on equity amounted to 18.9% for the first half of 2005 (2004: 13.1%). The cost/income ratio registered a further decrease, down from 63.0% for the corresponding period of 2004 to 56.3% for the first half of 2005. The total capital ratio was 8.8% compared to 10.7% at year-end 2004, while the core capital ratio was 5.6% compared with 6.7% at year-end 2004. The lower capital ratios partially reflect currency exchange rate movements. Much of DVBs business is US dollar denominated and the relative strength of the US dollar during the first half of 2005 has translated into higher figures in terms of the euro, the currency in which the Banks financial statements are published.