07.11.2006
Financial results for the nine months to 30 September 2006: DVB on track for another record year
DVB Bank AG is pleased to report strong performance for the first nine months of 2006: at €76.6 million, the result from operating activities before tax was up by a remarkable 74.5% compared to the same period of the previous year (9m 2005: €43.9 million).
Mr. Wolfgang F. Driese, CEO and Chairman of the Board of Managing Directors of DVB Bank AG, summarised the Bank's nine-month results: "Last year's nine-month results had already exceeded the Bank's total profitability in 2004. We have managed to repeat this success story: at €62.7 million, net profit for the first nine months of 2006 has once again outperformed the results for 2005 as a whole (€54.3 million). Looking at various projects and transactions in the pipeline for the fourth quarter, we are confident that we will achieve a record result for the business year 2006."
Individual operating result items developed as follows: net interest income after loan losses totalled €103.7 million, up 40.5% on the previous year's figure of €73.8 million. Net fee and commission income rose by 6.4 % to €48.3 million. This includes loan commissions from new Transport Finance commitments arranged, as well as advisory fees generated by the Bank's Corporate Finance activities. Given the emphasis on the fair-value measurement of derivatives and other financial instruments under IFRS, current interest rate and currency developments impact net trading income as well as the hedge result. Net trading income broke even for the first nine months of 2006 (9m 2005: €14.5 million), whilst the hedge result amounted to €1.9 million (€-17.3 million). General administrative expenditure grew by 7.8%, to €84.3 million, due to higher staff numbers as well as additional provisions for variable bonus payments, given the compensation structure for exceeding earnings targets. DVB employed 368 people as at 30 September 2006, up 7.3% compared with staffing numbers a year ago.
DVB Bank AG's total assets increased by 4.0% to €11.29 billion at the reporting date. DVB´s nominal customer lending (the aggregate of loans and advances to customers, guarantees and indemnities, and irrevocable loan commitments) totalled €11.55 billion - up 7.1% from the year-end 2005 (31 Dec 2005: €10.78 billion). DVB's accounting currency is the euro, yet nearly three-quarters of its entire portfolio is denominated in US dollars. Due to the appreciation of the euro versus the US dollar since the beginning of the year, growth rates for the Transport Finance portfolio were significantly higher in US dollar terms compared with their euro performance. DVB´s nominal customer lending totalled US$14.62 billion at 30 September 2006. Accordingly, nominal customer lending in US dollar terms showed a 10.7% increase compared to the year-end 2005 (US$12.71 billion). As in previous years, to manage the impact of exchange rate fluctuations during the year as a source of uncertain business results, we have already hedged projected US dollar net income.
The core capital ratio was 6.3 % (31 Dec 2005: 6.8%), whilst the total capital ratio decreased by almost one percentage point, to 9.3% (10.2%).
The key financial indicators used in the strategic management of the DVB Group developed within the target corridors set: according to IFRS, return on equity (before taxes) was 19.8% - up 3.9 percentage points (9m 2005: 15.9%). The cost/income ratio according to IFRS fell by 6.1 percentage points, to 52.6% (9m 2005: 58.7%). Based on German GAAP, return on equity for the first nine months of 2006 was 23.6% (9m 2005: 26.7%), whilst the cost/income ratio improved to 47.9% (9m 2005: 49,9 %). Earnings per share were €16.05 for the first nine months of 2006.
Note to Editors:
DVB Bank AG, based in Frankfurt/Main, is an international advisory bank and finance house that specialises in the global transport market. DVB offers integrated financing solutions and advisory services in respect of Shipping, Aviation, Land Transport, and Transport Infrastructure. The Bank operates out of offices in Frankfurt/Main, Hamburg, London, New York, Rotterdam, Hong Kong, Singapore, Tokyo, Bergen, Piraeus, and Curaçao. DVB Bank AG is listed on the Frankfurt Stock Exchange (ISIN: DE 0008045501).
Contact:
Prof. Dr. Borislav Bjelicic, Phone +49 69 9750-4390, Fax +49 69 9750-4333, DVB Bank Aktiengesellschaft, Corporate Communications, Friedrich-Ebert-Anlage 2-14, 60325 Frankfurt/Main, Germany, borislav.bjelicic@dvbbank.com, www.dvbbank.com
Mr. Wolfgang F. Driese, CEO and Chairman of the Board of Managing Directors of DVB Bank AG, summarised the Bank's nine-month results: "Last year's nine-month results had already exceeded the Bank's total profitability in 2004. We have managed to repeat this success story: at €62.7 million, net profit for the first nine months of 2006 has once again outperformed the results for 2005 as a whole (€54.3 million). Looking at various projects and transactions in the pipeline for the fourth quarter, we are confident that we will achieve a record result for the business year 2006."
Individual operating result items developed as follows: net interest income after loan losses totalled €103.7 million, up 40.5% on the previous year's figure of €73.8 million. Net fee and commission income rose by 6.4 % to €48.3 million. This includes loan commissions from new Transport Finance commitments arranged, as well as advisory fees generated by the Bank's Corporate Finance activities. Given the emphasis on the fair-value measurement of derivatives and other financial instruments under IFRS, current interest rate and currency developments impact net trading income as well as the hedge result. Net trading income broke even for the first nine months of 2006 (9m 2005: €14.5 million), whilst the hedge result amounted to €1.9 million (€-17.3 million). General administrative expenditure grew by 7.8%, to €84.3 million, due to higher staff numbers as well as additional provisions for variable bonus payments, given the compensation structure for exceeding earnings targets. DVB employed 368 people as at 30 September 2006, up 7.3% compared with staffing numbers a year ago.
DVB Bank AG's total assets increased by 4.0% to €11.29 billion at the reporting date. DVB´s nominal customer lending (the aggregate of loans and advances to customers, guarantees and indemnities, and irrevocable loan commitments) totalled €11.55 billion - up 7.1% from the year-end 2005 (31 Dec 2005: €10.78 billion). DVB's accounting currency is the euro, yet nearly three-quarters of its entire portfolio is denominated in US dollars. Due to the appreciation of the euro versus the US dollar since the beginning of the year, growth rates for the Transport Finance portfolio were significantly higher in US dollar terms compared with their euro performance. DVB´s nominal customer lending totalled US$14.62 billion at 30 September 2006. Accordingly, nominal customer lending in US dollar terms showed a 10.7% increase compared to the year-end 2005 (US$12.71 billion). As in previous years, to manage the impact of exchange rate fluctuations during the year as a source of uncertain business results, we have already hedged projected US dollar net income.
The core capital ratio was 6.3 % (31 Dec 2005: 6.8%), whilst the total capital ratio decreased by almost one percentage point, to 9.3% (10.2%).
The key financial indicators used in the strategic management of the DVB Group developed within the target corridors set: according to IFRS, return on equity (before taxes) was 19.8% - up 3.9 percentage points (9m 2005: 15.9%). The cost/income ratio according to IFRS fell by 6.1 percentage points, to 52.6% (9m 2005: 58.7%). Based on German GAAP, return on equity for the first nine months of 2006 was 23.6% (9m 2005: 26.7%), whilst the cost/income ratio improved to 47.9% (9m 2005: 49,9 %). Earnings per share were €16.05 for the first nine months of 2006.
Note to Editors:
DVB Bank AG, based in Frankfurt/Main, is an international advisory bank and finance house that specialises in the global transport market. DVB offers integrated financing solutions and advisory services in respect of Shipping, Aviation, Land Transport, and Transport Infrastructure. The Bank operates out of offices in Frankfurt/Main, Hamburg, London, New York, Rotterdam, Hong Kong, Singapore, Tokyo, Bergen, Piraeus, and Curaçao. DVB Bank AG is listed on the Frankfurt Stock Exchange (ISIN: DE 0008045501).
Contact:
Prof. Dr. Borislav Bjelicic, Phone +49 69 9750-4390, Fax +49 69 9750-4333, DVB Bank Aktiengesellschaft, Corporate Communications, Friedrich-Ebert-Anlage 2-14, 60325 Frankfurt/Main, Germany, borislav.bjelicic@dvbbank.com, www.dvbbank.com