DVB Bank AG, the Frankfurt-based bank which specialises in international transport finance, today announced a 35.3% increase in operating profit before loan loss provisions to €16.0 million for the three months to 31 March 2005. Wolfgang F. Driese, Chairman of DVB, commented: "We are pleased to report a significant advance in profitability for the first quarter of 2005. We currently focus on fully capitalising on the Bank´s unique business model and a rise of more than one third in operating profit before loan loss provisions serves to illustrate the Bank´s potential and represents a highly satisfactory start to 2005." Operating income, which includes net interest income, net commission income and net income from financial transactions, amounted to €37.5 million, an increase of 11.1% compared with the first quarter of 2004. Net interest income registered a 15.2% decline from €24.9 million to €21.1 million. The reduction in interest income largely reflected the lower USD exchange rate, a trend which saw DVB cover income in the forward market. A continuation of the strong demand for DVB´s Corporate Finance products resulted in an exceedingly positive performance in respect of commission income. In the event, commission income almost doubled from €7.0 million to €13.6 million, an advance of 95.5%. General administrative expenses fell by a further 0.9% to €21.9 million compared with €22.1 million for the first quarter of 2004. Profit from ordinary activities rose 28.6% to €16.0 million. The balance sheet total of DVB Bank increased by 3.6% to €9.58 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) amounted to €8.88 billion in the first quarter of 2005, an increase of 8.8% compared with the €8.16 billion achieved during the final quarter of 2004. The total capital ratio was marginally lower at 10.0% compared with 10.7% at year-end 2004, while the core capital ratio was 6.1% (year-end 2004: 6.7%). Return on equity reached 17.8% in the first quarter of 2005 (first quarter of 2004: 13.8%), while the cost/income ratio (CIR) registered a further decrease during the same period to 54.7% compared with 61.6% in the first quarter of 2004.