DVB posts an all-time high for 2011
Consolidated net income before taxes of €147.7 million - up 12.7%
DVB Bank SE's clearly-defined business model, with a unique focus on global Transport Finance, once again proved its worth throughout 2011. Against the background of the sovereign debt crisis in Europe and the prevailing difficult conditions in some international maritime shipping market segments, the Bank posted a very good consolidated net income before taxes of €147.7 million, which exceeded the previous year's record figure of €131.1 million by 12.7%.
Wolfgang F. Driese, CEO and Chairman of the Board of Managing Directors, assessed DVB’s consolidated results:
"We held our steady course during a year that was shaped by manifold turbulence and uncertainty. This is why we are extremely satisfied with our results, which mark an all-time high.
2012 will not be any easier to navigate, since the cash flows of international transport operators are under pressure – from continued excess supply in some maritime shipping segments, sluggish demand in some aviation sectors, and – particularly – from persistently high fuel costs. As before, we will adhere to a conservative lending policy, and will continue to be selective about new business, whilst closely monitoring existing exposures. Above all, we will further expand our advisory business, which has met with strong demand during the crisis. Our strategy has paid off."
DVB concluded 184 new transactions with an aggregate volume of €5.6 billion and a risk-adequate average interest margin of 313 basis points (2010: 140 new transactions, €4.4 billion, 327 basis points). Thanks to the higher new business originated and due to the sale of container boxes by a shipping investment fund managed by DVB, net interest income rose by 33.8%, to €258.3 million (2010: €193.0 million); at €199.1 million, net interest income after allowance for credit losses was up 41.2% year-on-year (2010: €141.0 million).
Whilst continuing tensions on international transport markets – particularly in maritime shipping – burdened DVB's portfolios, the Bank's risk management was effective, thanks to numerous pro-active and targeted measures. Allowance for credit losses totalled €–59.2 million (2010: €–52.0 million).
Net fee and commission income, which primarily includes fees and commissions from lending business, and asset management and advisory fees, remained at a high level of €116.2 million (2010: €124.4 million).
Net income from financial instruments in accordance with IAS 39 showed a marked decline of 85.4%, from €30.2 million to €4.4 million, reflecting market volatility in interest rates and currencies during the course of 2011.
DVB's total income (after allowance for credit losses) increased to €337.1 million in 2011, up 9.7% year-on-year (2010: €307.3 million).
General administrative expenses rose by 7.5%, to €189.4 million (2010: €176.2 million). Staff expenses of €109.0 million were up 7.4% year-on-year (2010: €101.5 million): due to the Bank's very good business performance, provisions for payments to employees under the “DVB Long-Term Incentive Plan” were recognised again. At €75.6 million, non-staff expenses were up 9.6% on the previous year (2010: €69.0 million).
Total assets increased by 14.0% from €19.3 billion to €22.0 billion. DVB’s nominal customer lending (the aggregate of loans and advances to customers, guarantees and indemnities, irrevocable loan commitments, and derivatives) rose by 13.0%, to €21.7 billion (2010: €19.2 billion).
DVB's capital ratios, determined in accordance with Basel II (following the confirmation of profits) developed as follows: the tier 1 ratio was 19.7% (2010: 18.9%), and the total capital ratio 21.8% (2010: 22.4%).
The key strategic indicators which the DVB Group uses to manage its business reflected the successful business performance: return on equity before taxes was 14.0% (2010: 13.9%), and the cost/income ratio declined to 47.8% (2010: 49.0%).
The Board of Managing Directors and the Supervisory Board will propose to DVB Bank SE’s Annual General Meeting, which will be held on 13 June 2012, to pay an unchanged dividend of €0.60 per notional no-par value share. In this way, DVB will provide its shareholders with an adequate dividend yield of 2.51%, whilst further strengthening the Bank's liable capital.
DVB Group Consolidated income statement (IFRS) as at 31 December 2011
DVB Group Statement of financial position (IFRS) as at 31 December 2011
Contact for this press release:
Elisabeth Winter, Manager, Investor Relations: +49 69 9750-4329, firstname.lastname@example.org