14.08.2008
Six-month results 2008: DVB weathers financial markets crisis, increases pre-tax profits by 9.7%
At EUR85.1 million, DVB Bank's profit from ordinary activities before tax for the first half of 2008 increased by 9.7% compared to the previous year (H1 2007: EUR77.6 million), equivalent to return on equity before tax of 25.3% (26.0%).
Mr. Wolfgang F. Driese, CEO and Chairman of the Board of Managing Directors of DVB Bank AG, summarised DVB Group's six-month results: "DVB capitalised on its unique, clearly-defined business model in a challenging financial markets environment, to achieve another strong result. The outlook for Transport Finance business remains favourable. Notwithstanding the economic downturn in a number of regions throughout the world, entailing a decline in demand for transportation, persistently high prices for crude oil exert pressure on transport providers all over the world to significantly improve the fuel efficiency of their fleets – this is only achievable through new vehicles. The crisis affecting the financial markets has led to increased refinancing costs: at present, these are easier to pass on, as some competitors have discontinued or reduced their transport finance activities, to focus elsewhere. DVB remains exclusively focused on Transport Finance, accompanying its clients as a reliable partner providing tailor-made financial transactions as well as innovative equity-based solutions, via funds advised by DVB. We have retained the necessary flexibility through the capital increase which we successfully concluded in July."
Individual operating result items developed as follows: net interest income after allowance for credit losses totalled EUR102.5 million, up 8.2 % on the previous year's figure of EUR94.7 million. The excellent quality of DVB's credit portfolio was evident in the reversal of EUR11.7 million in allowance for credit losses. Net fee and commission income rose by 12.1% in the first half of 2008, to EUR35.3 million. The figure includes loan commissions from new Transport Finance commitments arranged, as well as advisory fees generated by the Bank's Investment Management activities. General administrative expenses increased by 12.4%, to EUR71.8 million, reflecting the continued growth in DVB's business activities and associated new hiring: at 30 June 2008, DVB Group (including TES Aviation) employed 536 staff (30 June 2007: 419).
DVB Bank AG reported total assets of EUR13.2 billion, up slightly by 0.4% (31 Dec 2007: EUR13.1 billion). DVB's nominal customer lending (the aggregate of loans and advances to customers, guarantees and indemnities, and irrevocable loan commitments) rose by 2.3%, from EUR14.37 billion to EUR14.71 billion. The continued appreciation of the euro versus the US dollar absorbed some of the underlying growth: DVB's accounting currency is the euro, whereas 79% of its aggregate customer lending is denominated in US dollars. At 9.6%, customer lending in US dollar terms once again showed a higher growth rate than in euro terms, rising to USD23.19 billion (31 Dec 2007: USD21.16 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.
Return on equity before tax is one of the two key strategic indicators employed by DVB Group: measured according to IFRS, it was 25.3% (H1 2007: 26.0%). The cost/income ratio according to IFRS increased by 1.8% percentage points, to 49.5% (H1 2007: 47.7%). Based on German GAAP (HGB), return on equity before tax for the first half of 2008 was 22.2% (H1 2007: 24.6%), whilst the cost/income ratio rose to 49.4% (H1 2007: 48.4%).
DVB has applied the Advanced Approach under Basel II to calculate capital ratios since the beginning of 2008. This has provided significant relief in terms of risk-weighted assets to be included, increasing the tier 1 capital ratio to 12.3% and the total capital ratio to 17.8% Based on the previous regulatory framework (Basel I), the core capital ratio declined slightly to 6.2% (31 Dec 2007: 6.4%), whilst the total capital ratio stood at 9.1% (31 Dec. 2007: 9.4%). The capital ratios shown exclude the funds raised through the capital increase successfully concluded in 2008, as the fresh capital was available to DVB after the period under review, in July 2008.
DVB Bank AG - Group Consolidated Income Statement (as at 30/06/2008)
Mr. Wolfgang F. Driese, CEO and Chairman of the Board of Managing Directors of DVB Bank AG, summarised DVB Group's six-month results: "DVB capitalised on its unique, clearly-defined business model in a challenging financial markets environment, to achieve another strong result. The outlook for Transport Finance business remains favourable. Notwithstanding the economic downturn in a number of regions throughout the world, entailing a decline in demand for transportation, persistently high prices for crude oil exert pressure on transport providers all over the world to significantly improve the fuel efficiency of their fleets – this is only achievable through new vehicles. The crisis affecting the financial markets has led to increased refinancing costs: at present, these are easier to pass on, as some competitors have discontinued or reduced their transport finance activities, to focus elsewhere. DVB remains exclusively focused on Transport Finance, accompanying its clients as a reliable partner providing tailor-made financial transactions as well as innovative equity-based solutions, via funds advised by DVB. We have retained the necessary flexibility through the capital increase which we successfully concluded in July."
Individual operating result items developed as follows: net interest income after allowance for credit losses totalled EUR102.5 million, up 8.2 % on the previous year's figure of EUR94.7 million. The excellent quality of DVB's credit portfolio was evident in the reversal of EUR11.7 million in allowance for credit losses. Net fee and commission income rose by 12.1% in the first half of 2008, to EUR35.3 million. The figure includes loan commissions from new Transport Finance commitments arranged, as well as advisory fees generated by the Bank's Investment Management activities. General administrative expenses increased by 12.4%, to EUR71.8 million, reflecting the continued growth in DVB's business activities and associated new hiring: at 30 June 2008, DVB Group (including TES Aviation) employed 536 staff (30 June 2007: 419).
DVB Bank AG reported total assets of EUR13.2 billion, up slightly by 0.4% (31 Dec 2007: EUR13.1 billion). DVB's nominal customer lending (the aggregate of loans and advances to customers, guarantees and indemnities, and irrevocable loan commitments) rose by 2.3%, from EUR14.37 billion to EUR14.71 billion. The continued appreciation of the euro versus the US dollar absorbed some of the underlying growth: DVB's accounting currency is the euro, whereas 79% of its aggregate customer lending is denominated in US dollars. At 9.6%, customer lending in US dollar terms once again showed a higher growth rate than in euro terms, rising to USD23.19 billion (31 Dec 2007: USD21.16 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.
Return on equity before tax is one of the two key strategic indicators employed by DVB Group: measured according to IFRS, it was 25.3% (H1 2007: 26.0%). The cost/income ratio according to IFRS increased by 1.8% percentage points, to 49.5% (H1 2007: 47.7%). Based on German GAAP (HGB), return on equity before tax for the first half of 2008 was 22.2% (H1 2007: 24.6%), whilst the cost/income ratio rose to 49.4% (H1 2007: 48.4%).
DVB has applied the Advanced Approach under Basel II to calculate capital ratios since the beginning of 2008. This has provided significant relief in terms of risk-weighted assets to be included, increasing the tier 1 capital ratio to 12.3% and the total capital ratio to 17.8% Based on the previous regulatory framework (Basel I), the core capital ratio declined slightly to 6.2% (31 Dec 2007: 6.4%), whilst the total capital ratio stood at 9.1% (31 Dec. 2007: 9.4%). The capital ratios shown exclude the funds raised through the capital increase successfully concluded in 2008, as the fresh capital was available to DVB after the period under review, in July 2008.
DVB Bank AG - Group Consolidated Income Statement (as at 30/06/2008)
DVB Bank AG - Consolidated Balance Sheet (as at 30/06/2008)
Contact person for this press release:
Elisabeth Winter, Investor Relations, Phone +49 69 9750 4329, elisabeth.winter@dvbbank.com
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, Cardiff, Rotterdam, Bergen/Oslo, Piraeus, Zurich, Singapore, Tokyo, Hong Kong, New York and Curaçao. DVB Bank AG is listed at the Frankfurt Stock Exchange (ISIN: DE0008045501).