14.11.2007
DVB's nine-month results 2007 already outperform full-year figures for 2006
At EUR110.2 million, DVB Bank's result from ordinary activities before tax for the first nine months of 2007 increased by 43.9% compared to the previous year (9m 2006: EUR76.6 million). Accordingly, return on equity before tax rose to 24.9% (9m 2006: 19.8%). DVB's results for the first nine months of 2007 have already outperformed the full-year figures recorded in 2006.
Wolfgang F. Driese, Chairman of the Board of Managing Directors of DVB Bank AG, said: "Looking at the nine-month results and developments during the fourth quarter to date, we envisage being able to deliver yet another outstanding full-year result to our shareholders. This has been achieved in a market environment that was anything but easy to handle: we could rely on the solid funding base available to us within the DZ BANK Group, but the crisis in the financial markets triggered by the problems in the US mortgage market has recently driven up our refinancing costs. Having said that, the crisis also has some positive aspects, as it appears to be forcing market participants to price risks on a more realistic basis – even in global transport finance. We believe that such a correction is overdue. In fact, there are already signs that some providers – who had been buying market share through aggressive pricing – have changed their policy. Whether this improvement in the competitive environment is in fact sustainable in 2008, remains to be seen. It is also worth noting that DVB's unique position has been affirmed, in the course of an unprecedented crisis in the financial markets, both by the strength of our results and the performance of the share price."
Individual operating result items developed as follows: net interest income after loan losses totalled EUR140.2 million, up 35.2% on the previous year's figure of EUR103.7 million. Net fee and commission income rose by 15.7% to EUR55.9 million, reflecting the strong growth in DVB's business activities – with the main contributions from loan commissions from new Transport Finance commitments arranged, as well as fund management fees generated by the Bank's Group Investment Management activities. General administrative expenses increased by 17.1%, to EUR98.7 million (9m 2006: EUR84.3 million), reflecting the continued growth in DVB's business activities, associated higher staff numbers as well as additional provisions for variable bonus payments. DVB employed 407 people as at 30 September 2007, up 10.6% compared with staffing numbers a year ago.
DVB Bank AG reported total assets of EUR12.31 billion, up 10.9% (31 Dec 2006: EUR11.10 billion). DVB's nominal customer lending (the aggregate of loans and advances to customers, guarantees and indemnities, and irrevocable loan commitments) rose by 8.3%, from EUR11.97 billion to EUR12.97 billion. DVB's accounting currency is the euro, whereas almost three-quarters of its aggregate customer lending is denominated in US dollars. Given the continued appreciation of the euro versus the US dollar, growth rates for the Transport Finance portfolio were significantly higher in US dollar terms compared with their euro performance. Customer lending in US dollar terms showed a higher increase of 16.7%, to USD18.40 billion, compared to the year-end 2006 (USD15.77 billion). This emphasises the strong business growth and DVB's top position in international transport finance. 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.
Return on equity before tax is one of the two key strategic indicators employed by DVB Group: measured according to IFRS, it was 24.9% – up strongly by 5.1 percentage points (9m 2006: 19.8%). The cost/income ratio according to IFRS improved significantly by 3.9 percentage points, to 48.7% (52.6%). Based on German GAAP (HGB), return on equity for the first nine months of 2007 was 25.4% (9m 2006: 23.6%), whilst the cost/income ratio improved to 47.1% (47.9%).
The core capital ratio according to the German Banking Act stood at 6.2% (31 Dec 2006: 6.8%), whilst the total capital ratio remained stable, at 9.5% (9.7%).
DVB Bank AG - Group Consolidated Income Statement (as at 30/09/2007)
DVB Bank AG - Consolidated Balance Sheet (as at 30/09/2007)
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, Hamburg, London, New York, Rotterdam, Hong Kong, Singapore, Tokyo, Bergen/Oslo, Piraeus, and Curaçao. DVB Bank AG is listed on 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
Wolfgang F. Driese, Chairman of the Board of Managing Directors of DVB Bank AG, said: "Looking at the nine-month results and developments during the fourth quarter to date, we envisage being able to deliver yet another outstanding full-year result to our shareholders. This has been achieved in a market environment that was anything but easy to handle: we could rely on the solid funding base available to us within the DZ BANK Group, but the crisis in the financial markets triggered by the problems in the US mortgage market has recently driven up our refinancing costs. Having said that, the crisis also has some positive aspects, as it appears to be forcing market participants to price risks on a more realistic basis – even in global transport finance. We believe that such a correction is overdue. In fact, there are already signs that some providers – who had been buying market share through aggressive pricing – have changed their policy. Whether this improvement in the competitive environment is in fact sustainable in 2008, remains to be seen. It is also worth noting that DVB's unique position has been affirmed, in the course of an unprecedented crisis in the financial markets, both by the strength of our results and the performance of the share price."
Individual operating result items developed as follows: net interest income after loan losses totalled EUR140.2 million, up 35.2% on the previous year's figure of EUR103.7 million. Net fee and commission income rose by 15.7% to EUR55.9 million, reflecting the strong growth in DVB's business activities – with the main contributions from loan commissions from new Transport Finance commitments arranged, as well as fund management fees generated by the Bank's Group Investment Management activities. General administrative expenses increased by 17.1%, to EUR98.7 million (9m 2006: EUR84.3 million), reflecting the continued growth in DVB's business activities, associated higher staff numbers as well as additional provisions for variable bonus payments. DVB employed 407 people as at 30 September 2007, up 10.6% compared with staffing numbers a year ago.
DVB Bank AG reported total assets of EUR12.31 billion, up 10.9% (31 Dec 2006: EUR11.10 billion). DVB's nominal customer lending (the aggregate of loans and advances to customers, guarantees and indemnities, and irrevocable loan commitments) rose by 8.3%, from EUR11.97 billion to EUR12.97 billion. DVB's accounting currency is the euro, whereas almost three-quarters of its aggregate customer lending is denominated in US dollars. Given the continued appreciation of the euro versus the US dollar, growth rates for the Transport Finance portfolio were significantly higher in US dollar terms compared with their euro performance. Customer lending in US dollar terms showed a higher increase of 16.7%, to USD18.40 billion, compared to the year-end 2006 (USD15.77 billion). This emphasises the strong business growth and DVB's top position in international transport finance. 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.
Return on equity before tax is one of the two key strategic indicators employed by DVB Group: measured according to IFRS, it was 24.9% – up strongly by 5.1 percentage points (9m 2006: 19.8%). The cost/income ratio according to IFRS improved significantly by 3.9 percentage points, to 48.7% (52.6%). Based on German GAAP (HGB), return on equity for the first nine months of 2007 was 25.4% (9m 2006: 23.6%), whilst the cost/income ratio improved to 47.1% (47.9%).
The core capital ratio according to the German Banking Act stood at 6.2% (31 Dec 2006: 6.8%), whilst the total capital ratio remained stable, at 9.5% (9.7%).
DVB Bank AG - Group Consolidated Income Statement (as at 30/09/2007)
DVB Bank AG - Consolidated Balance Sheet (as at 30/09/2007)
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, Hamburg, London, New York, Rotterdam, Hong Kong, Singapore, Tokyo, Bergen/Oslo, Piraeus, and Curaçao. DVB Bank AG is listed on 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