10.08.2006
DVB's half-year figures confirm outlook for record results in 2006
DVB Bank maintained the strong momentum of its business performance seen during the first quarter of 2006 throughout the second quarter as well, posting impressive half-year figures. At EUR 60.7 million, the result from operating activities before tax doubled compared to the same quarter of the previous year (H1 2005: EUR 29.3 million).
Mr. Wolfgang F. Driese, CEO and Chairman of the Board of Managing Directors of DVB Bank AG, summarised the Bank's six-month results: "Yet another extraordinarily successful quarter was driven by broad-based earnings growth across all Transport Finance divisions, against a favourable background of continued strength of the international transport industry. In this context, DVB benefited in particular from strong demand for tailor-made financing solutions. DVB thus reaffirmed its skills and expertise in structuring highly complex transactions. Looking at the six-month results, in conjunction with new transactions already in the pipeline, our shareholders can look forward to record results for the 2006 business year."
Individual operating result items developed as follows: net interest income after loan losses totalled EUR 62.9 million, up 27.8% on the previous year's figure of EUR 49.2 million. Net fee and commission income rose by 3.3% to EUR 31.3 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 for the first half of 2006 totalled EUR 9.6 million (H1 2005: EUR 9.7 million), whilst the hedge result amounted to EUR 8.6 million (EUR -11.5 million). General administrative expenditure grew by 7.9%, to EUR 56.3 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 388 people as at 30 June 2006, up 9.3% compared with staffing numbers a year ago.
DVB Bank AG's total assets were virtually unchanged as at the reporting date, at EUR 10.87 billion. DVB's nominal customer lending (the aggregate of loans and advances to customers, guarantees and indemnities, and irrevocable loan commitments) totalled EUR 11.07 billion - up 2.7% from the year-end 2005 (31 Dec 2005: EUR 10.78 billion). This figure reflected the recent appreciation of the euro versus the US dollar: DVB maintains its accounts in euros, whereas almost three-quarters of its aggregate lending volume are denominated in US dollars. Accordingly, growth rates for the Transport Finance portfolio were significantly higher in US dollar terms compared with their euro performance. Nominal customer lending in US dollar terms showed a 10.7% increase, to USD14.07 billion, compared to the year-end 2005 (31 Dec 2005: USD 12.71 billion). As in previous years, to curtail intra-year exchange rate fluctuations as a source of uncertain business results, the projected US dollar net income from interest and commissions has been hedged.
The core capital ratio remained virtually unchanged, at 6.7% (31 Dec 2005: 6.8%), whilst the total capital ratio rose to 10.8% (10.2%).
The key financial indicators used in the strategic management of the DVB Group developed in a particularly favourable manner: according to IFRS, return on equity (before taxes) was 23.5% - up 7.6 percentage points (H1 2005: 15.9%). The cost/income ratio according to IFRS fell by 10.8 percentage points, to 47.9 % (H1 2005: 58.7%). Based on German GAAP, return on equity for the first half of 2006 increased to 24.1% (H1 2005: 18.9%), whilst the cost/income ratio improved to 47.6 % (56.3%).
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 six-month results: "Yet another extraordinarily successful quarter was driven by broad-based earnings growth across all Transport Finance divisions, against a favourable background of continued strength of the international transport industry. In this context, DVB benefited in particular from strong demand for tailor-made financing solutions. DVB thus reaffirmed its skills and expertise in structuring highly complex transactions. Looking at the six-month results, in conjunction with new transactions already in the pipeline, our shareholders can look forward to record results for the 2006 business year."
Individual operating result items developed as follows: net interest income after loan losses totalled EUR 62.9 million, up 27.8% on the previous year's figure of EUR 49.2 million. Net fee and commission income rose by 3.3% to EUR 31.3 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 for the first half of 2006 totalled EUR 9.6 million (H1 2005: EUR 9.7 million), whilst the hedge result amounted to EUR 8.6 million (EUR -11.5 million). General administrative expenditure grew by 7.9%, to EUR 56.3 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 388 people as at 30 June 2006, up 9.3% compared with staffing numbers a year ago.
DVB Bank AG's total assets were virtually unchanged as at the reporting date, at EUR 10.87 billion. DVB's nominal customer lending (the aggregate of loans and advances to customers, guarantees and indemnities, and irrevocable loan commitments) totalled EUR 11.07 billion - up 2.7% from the year-end 2005 (31 Dec 2005: EUR 10.78 billion). This figure reflected the recent appreciation of the euro versus the US dollar: DVB maintains its accounts in euros, whereas almost three-quarters of its aggregate lending volume are denominated in US dollars. Accordingly, growth rates for the Transport Finance portfolio were significantly higher in US dollar terms compared with their euro performance. Nominal customer lending in US dollar terms showed a 10.7% increase, to USD14.07 billion, compared to the year-end 2005 (31 Dec 2005: USD 12.71 billion). As in previous years, to curtail intra-year exchange rate fluctuations as a source of uncertain business results, the projected US dollar net income from interest and commissions has been hedged.
The core capital ratio remained virtually unchanged, at 6.7% (31 Dec 2005: 6.8%), whilst the total capital ratio rose to 10.8% (10.2%).
The key financial indicators used in the strategic management of the DVB Group developed in a particularly favourable manner: according to IFRS, return on equity (before taxes) was 23.5% - up 7.6 percentage points (H1 2005: 15.9%). The cost/income ratio according to IFRS fell by 10.8 percentage points, to 47.9 % (H1 2005: 58.7%). Based on German GAAP, return on equity for the first half of 2006 increased to 24.1% (H1 2005: 18.9%), whilst the cost/income ratio improved to 47.6 % (56.3%).
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