14.08.2007
Results for the first half of 2007: DVB goes from strength to strength. Profit before taxes up 27.8% - net profit up 45.1%
At EUR77.6 million, DVB Bank's profit from ordinary activities before tax for the first half of 2007 increased by 27.8% compared to the previous year (H1 2006: EUR60.7 million). Accordingly, return on equity before tax rose to 26.5% (H1 2006: 23.5%), even with a higher capital base.
Mr. Wolfgang F. Driese, CEO and Chairman of the Board of Managing Directors of DVB Bank AG, summarised DVB Group's six-month results: "The continued strong momentum in new business generated across the Transport Finance divisions was a key driver of the marked profit increase, together with the growing contribution provided by DVB's investment management activities. Although DVB was not fully immune to increasing margin pressures in the Transport Finance business, we more than offset this, by boosting volumes as well as through highly complex, customised financing transactions which we managed to close. Looking at new transactions already in the pipeline for the second half of the year, we envisage a similarly successful development for the remainder of 2007. Moreover, we have built the foundation for further income growth in Transport Finance, outside the margin-driven lending business with two acquisitions closed in July: TES Aviation, a specialist aircraft engine services provider, and a 0.5 million TEU container fleet from Capital Lease, a major container leasing company. We hope to see market developments in various transport finance segments over the coming months that will allow a return to a more risk-adequate pricing of credit risks. Given our perspective on the markets we cover, and the way we conduct our business, we believe a correction to be overdue."
Individual operating result items developed as follows: net interest income after loan losses totalled EUR94.7 million, up 50.6% on the previous year's figure of EUR62.9 million. The excellent quality of DVB's credit portfolio was evident in the reversal of EUR6.5 million in impairment losses on loans and advances (H1 2006: EUR0.5 million recognised). Reflecting the volatile nature of the structured finance business, net fee and commission income of EUR11.2 million for the first quarter of 2007 had fallen somewhat short of the growth trend. Thanks to a marked increase during the second quarter, to EUR31.5 million, net fee and commission income for the first six months of 2007 was up 0.6% on the first half of the previous year. The figure includes loan commissions from new Transport Finance commitments arranged, as well as advisory fees generated by the Bank's Corporate Finance activities. General administrative expenses grew by 13.5%, to EUR63.9 million, mainly driven by the hiring of additional staff reflecting the growth in DVB's business activities. DVB employed 419 people as at 30 June 2007, up 8.0% compared with staffing numbers a year ago. Moreover, additional provisions were recognised for variable bonus payments.
DVB Bank AG reported total assets of EUR11.4 billion (31 Dec 2006: EUR11.1 billion). The 2.7 % increase was due to flows around the reporting date. DVB's nominal customer lending (the aggregate of loans and advances to customers, guarantees and indemnities, and irrevocable loan commitments) rose by 7.1%, from EUR11.97 billion to EUR12.82 billion. The recent appreciation of the euro versus the US dollar absorbed some of the underlying growth: DVB maintains its accounts in euros, whereas almost three-quarters of its aggregate customer lending volume is denominated in US dollars. Customer lending in US dollar terms showed a higher increase of 9.8%, to USD17.31 billion, compared to the year-end 2006 (USD15.77 billion). As in previous years, to minimise the impact of exchange rate fluctuations as a source of uncertain business results, the Bank hedged projected US dollar net income from interest and commissions.
The core capital ratio declined to 6.3% (31 Dec 2006: 6.8%), whilst the total capital ratio stood at 9.8% (9.7%). Return on equity before tax is one of the two key strategic indicators employed by DVB Group: measured according to IFRS, it was 26.4%, up strongly by 2.9 percentage points (H1 2006: 23.5%). The cost/income ratio according to IFRS improved by 0.6 percentage points, to 47.3% (47.9%). Based on German GAAP (HGB), return on equity for the first half of 2007 was 24.6% (H1 2006: 24.1%), whilst the cost/income ratio rose to 48.4% (47.6%).
DVB Bank AG - Group Consolidated Income Statement (as at 30/06/2007)
DVB Bank AG - Consolidated Balance Sheet (as at 30/06/2007)
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, and Land Transport. The Bank operates out of offices in Frankfurt/Main, London, New York, Rotterdam, Hamburg, Bergen/Oslo, Piraeus, Hong Kong, Singapore, Tokyo and Curaçao. DVB Bank AG is listed at the Frankfurt Stock Exchange (ISIN: DE0008045501).
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 DVB Group's six-month results: "The continued strong momentum in new business generated across the Transport Finance divisions was a key driver of the marked profit increase, together with the growing contribution provided by DVB's investment management activities. Although DVB was not fully immune to increasing margin pressures in the Transport Finance business, we more than offset this, by boosting volumes as well as through highly complex, customised financing transactions which we managed to close. Looking at new transactions already in the pipeline for the second half of the year, we envisage a similarly successful development for the remainder of 2007. Moreover, we have built the foundation for further income growth in Transport Finance, outside the margin-driven lending business with two acquisitions closed in July: TES Aviation, a specialist aircraft engine services provider, and a 0.5 million TEU container fleet from Capital Lease, a major container leasing company. We hope to see market developments in various transport finance segments over the coming months that will allow a return to a more risk-adequate pricing of credit risks. Given our perspective on the markets we cover, and the way we conduct our business, we believe a correction to be overdue."
Individual operating result items developed as follows: net interest income after loan losses totalled EUR94.7 million, up 50.6% on the previous year's figure of EUR62.9 million. The excellent quality of DVB's credit portfolio was evident in the reversal of EUR6.5 million in impairment losses on loans and advances (H1 2006: EUR0.5 million recognised). Reflecting the volatile nature of the structured finance business, net fee and commission income of EUR11.2 million for the first quarter of 2007 had fallen somewhat short of the growth trend. Thanks to a marked increase during the second quarter, to EUR31.5 million, net fee and commission income for the first six months of 2007 was up 0.6% on the first half of the previous year. The figure includes loan commissions from new Transport Finance commitments arranged, as well as advisory fees generated by the Bank's Corporate Finance activities. General administrative expenses grew by 13.5%, to EUR63.9 million, mainly driven by the hiring of additional staff reflecting the growth in DVB's business activities. DVB employed 419 people as at 30 June 2007, up 8.0% compared with staffing numbers a year ago. Moreover, additional provisions were recognised for variable bonus payments.
DVB Bank AG reported total assets of EUR11.4 billion (31 Dec 2006: EUR11.1 billion). The 2.7 % increase was due to flows around the reporting date. DVB's nominal customer lending (the aggregate of loans and advances to customers, guarantees and indemnities, and irrevocable loan commitments) rose by 7.1%, from EUR11.97 billion to EUR12.82 billion. The recent appreciation of the euro versus the US dollar absorbed some of the underlying growth: DVB maintains its accounts in euros, whereas almost three-quarters of its aggregate customer lending volume is denominated in US dollars. Customer lending in US dollar terms showed a higher increase of 9.8%, to USD17.31 billion, compared to the year-end 2006 (USD15.77 billion). As in previous years, to minimise the impact of exchange rate fluctuations as a source of uncertain business results, the Bank hedged projected US dollar net income from interest and commissions.
The core capital ratio declined to 6.3% (31 Dec 2006: 6.8%), whilst the total capital ratio stood at 9.8% (9.7%). Return on equity before tax is one of the two key strategic indicators employed by DVB Group: measured according to IFRS, it was 26.4%, up strongly by 2.9 percentage points (H1 2006: 23.5%). The cost/income ratio according to IFRS improved by 0.6 percentage points, to 47.3% (47.9%). Based on German GAAP (HGB), return on equity for the first half of 2007 was 24.6% (H1 2006: 24.1%), whilst the cost/income ratio rose to 48.4% (47.6%).
DVB Bank AG - Group Consolidated Income Statement (as at 30/06/2007)
DVB Bank AG - Consolidated Balance Sheet (as at 30/06/2007)
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, and Land Transport. The Bank operates out of offices in Frankfurt/Main, London, New York, Rotterdam, Hamburg, Bergen/Oslo, Piraeus, Hong Kong, Singapore, Tokyo and Curaçao. DVB Bank AG is listed at the Frankfurt Stock Exchange (ISIN: DE0008045501).
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