14.05.2010
DVB Group posts satisfactory start into 2010 - Significant year-on-year increase in net interest income
DVB made a satisfactory start into 2010, in spite of the prevailing difficult environment on international financial and transport markets. Consolidated net income before taxes for the first quarter of 2010 amounted to €16.7 million (down 38.4% year-on-year).
Wolfgang F. Driese, CEO and Chairman of the Board of Managing Directors, commented on DVB’s consolidated results for the first three months of 2010: "Looking at the current market environment, we are satisfied with our results. We continue to tread with care, but will generally support our clients with finance for new projects. Risk management and the close monitoring of existing exposures remain the centre of our attention. On a positive note, we succeeded in largely neutralising the high additional costs incurred as a result of money market distortions, which particularly burdened first-quarter results in the previous year, in trusting co-operation with our clients. Uncertainty on the financial markets – which resurfaced recently – makes any projections regarding developments for the remainder of the year difficult."
Total income during the first quarter of 2010 only declined by 9.8% year-on-year, from €63.3 million to €57.1 million.
Notably, net interest income rose by a marked 71.8%, to €51.7 million (Q1 2009: €30.1 million). Interest expenses were down by 16.6% during the first quarter of 2010, to €130.5 million (Q1 2009: €156.5 million). In particular, the Bank significantly reduced the impact from distortions on the international money markets, compared with the same period of the previous year. Thanks to the counter-measures adopted by DVB, in co-operation with its clients, interest expenses attributable to such distortions were down to a mere €0.1 million during the first quarter of 2010 (Q1 2009: €17.3 million). Interest income of €182.2 million was down 2.4% (Q1 2009: €186.6 million). DVB concluded new business during the first quarter of 2010 on a selective basis – however, the aggregate volumes originated did not fully match maturities of existing exposures.
DVB’s fee and commission-based business generates loan commissions from new Transport Finance exposures, as well as advisory fees. The net fee and commission income fell by half, from €32.9 million in the first quarter of 2009 to €15.6 million, which reflected the lower overall volume of new Transport Finance business.
Net income from financial instruments in accordance with IAS 39 decreased from €–5.3 million to €–11.4 million. Against the background of the global financial markets crisis, the figure particularly reflects increased volatility on foreign exchange and interest rate markets.
General administrative expenses rose by 11.6 % to €40.4 million. Staff expenses were up 10.2 %, to €23.9 million, due to higher provisions for potentially increased expenditure. Higher costs for legal advice and IT services meant that non-staff expenses (including depreciation, amortisation and write-downs) increased by €1.9 million, to €16.5 million.
DVB reported total assets of €18.3 billion, up 5.8% from the 2009 year-end (31 December 2009: €17.3 billion). DVB's nominal volume of customer lending increased to €17.8 billion, up 2.9% from 31 December 2009; in US dollar terms, customer lending declined by 3.6%, to US$24.0 billion.
Return on equity (ROE) before taxes stood at 7.4% (Q1 2009: 11.9%), whilst the cost/income ratio (CIR) rose by 13.1 percentage points to 70.7% (Q1 2009: 57.6%). Calculated in accordance with Basel II, DVB's tier 1 ratio rose to 15.3% (31 December 2009: 14.2%), and the total capital ratio increased to 19.8% (31 December 2009: 18.0%).
DVB Group - Consolidated income statement (as at 31 March 2010)
DVB Group - Consolidated statement of financial position (as at 31 March 2010)
Contact for this press release:
Elisabeth Winter, Manager, Investor Relations: phone +49 69 9750-4329
E-mail: elisabeth.winter@dvbbank.com
Note to Editors:
DVB Bank SE, headquartered in Frankfurt/Main, Germany, is the leading specialist in the international Transport Finance business. The Bank offers integrated financing solutions and advisory services in respect of Shipping Finance, Aviation Finance, and Land Transport Finance. The Bank operates out of offices in Frankfurt/Main, Hamburg, London, Cardiff, Rotterdam, Bergen/Oslo, Piraeus, Zurich, Singapore, Tokyo, New York and Curaçao. DVB Bank SE is listed at the Frankfurt Stock Exchange (ISIN: DE0008045501).
Wolfgang F. Driese, CEO and Chairman of the Board of Managing Directors, commented on DVB’s consolidated results for the first three months of 2010: "Looking at the current market environment, we are satisfied with our results. We continue to tread with care, but will generally support our clients with finance for new projects. Risk management and the close monitoring of existing exposures remain the centre of our attention. On a positive note, we succeeded in largely neutralising the high additional costs incurred as a result of money market distortions, which particularly burdened first-quarter results in the previous year, in trusting co-operation with our clients. Uncertainty on the financial markets – which resurfaced recently – makes any projections regarding developments for the remainder of the year difficult."
Total income during the first quarter of 2010 only declined by 9.8% year-on-year, from €63.3 million to €57.1 million.
Notably, net interest income rose by a marked 71.8%, to €51.7 million (Q1 2009: €30.1 million). Interest expenses were down by 16.6% during the first quarter of 2010, to €130.5 million (Q1 2009: €156.5 million). In particular, the Bank significantly reduced the impact from distortions on the international money markets, compared with the same period of the previous year. Thanks to the counter-measures adopted by DVB, in co-operation with its clients, interest expenses attributable to such distortions were down to a mere €0.1 million during the first quarter of 2010 (Q1 2009: €17.3 million). Interest income of €182.2 million was down 2.4% (Q1 2009: €186.6 million). DVB concluded new business during the first quarter of 2010 on a selective basis – however, the aggregate volumes originated did not fully match maturities of existing exposures.
DVB’s fee and commission-based business generates loan commissions from new Transport Finance exposures, as well as advisory fees. The net fee and commission income fell by half, from €32.9 million in the first quarter of 2009 to €15.6 million, which reflected the lower overall volume of new Transport Finance business.
Net income from financial instruments in accordance with IAS 39 decreased from €–5.3 million to €–11.4 million. Against the background of the global financial markets crisis, the figure particularly reflects increased volatility on foreign exchange and interest rate markets.
General administrative expenses rose by 11.6 % to €40.4 million. Staff expenses were up 10.2 %, to €23.9 million, due to higher provisions for potentially increased expenditure. Higher costs for legal advice and IT services meant that non-staff expenses (including depreciation, amortisation and write-downs) increased by €1.9 million, to €16.5 million.
DVB reported total assets of €18.3 billion, up 5.8% from the 2009 year-end (31 December 2009: €17.3 billion). DVB's nominal volume of customer lending increased to €17.8 billion, up 2.9% from 31 December 2009; in US dollar terms, customer lending declined by 3.6%, to US$24.0 billion.
Return on equity (ROE) before taxes stood at 7.4% (Q1 2009: 11.9%), whilst the cost/income ratio (CIR) rose by 13.1 percentage points to 70.7% (Q1 2009: 57.6%). Calculated in accordance with Basel II, DVB's tier 1 ratio rose to 15.3% (31 December 2009: 14.2%), and the total capital ratio increased to 19.8% (31 December 2009: 18.0%).
DVB Group - Consolidated income statement (as at 31 March 2010)
DVB Group - Consolidated statement of financial position (as at 31 March 2010)
Contact for this press release:
Elisabeth Winter, Manager, Investor Relations: phone +49 69 9750-4329
E-mail: elisabeth.winter@dvbbank.com
Note to Editors:
DVB Bank SE, headquartered in Frankfurt/Main, Germany, is the leading specialist in the international Transport Finance business. The Bank offers integrated financing solutions and advisory services in respect of Shipping Finance, Aviation Finance, and Land Transport Finance. The Bank operates out of offices in Frankfurt/Main, Hamburg, London, Cardiff, Rotterdam, Bergen/Oslo, Piraeus, Zurich, Singapore, Tokyo, New York and Curaçao. DVB Bank SE is listed at the Frankfurt Stock Exchange (ISIN: DE0008045501).