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Aviation Finance – Portfolio

As a lead arranger, underwriter and provider of asset-based finance to the aviation industry, we support our aviation clients around the globe in all market conditions with intelligent and customised solutions provided through our innovative Aviation platform. Thanks to our integrated approach, we serve a highly diversified client base, with an attractive financing mix for new and used aircraft. DVB’s Aviation Finance team has thus been able to generate strong financial results.

Extract from Aviation Finance’s segment report as at 30 Jun 2016

€ mn 30 Jun 2016 30 Jun 2015 %
Net interest income 38.4
39.5
–2.8
Allowance for credit losses –1.2
2.9

Net interest income after allowance for credit losses 37.2
42.4
–12.3
Net fee and commission income 24.3
20.1
20.9
Total income (excluding the IAS 39 result) 61.6 61.9 0.5
General administrative expenses1) –11.7 –10.4 12.5
Net segment income before IAS 39, bank levy, BVR Deposit Guarantee Scheme and taxes  49.9 51.5 3.1 
Net segment income before bank levy, BVR Deposit Guarantee Scheme and taxes 49.9 51.6 3.3

1)Only those costs are allocated to DVB’s operating business divisions for which they are directly responsible. General costs of operations, overheads or, for example, IT costs, are not allocated to the operating business divisions.

As at 30 June 2016, our Aviation Finance division had a loan portfolio of €7.8 billion (31 December 2015: €7.7 billion). Focusing on the manufacturers, our portfolio shows a slight bias towards the financing of Boeing-manufactured equipment. Narrowbody aircraft remain the dominant aircraft class, continuing our strategy of favouring narrowbody aircraft as they represent the most liquid aircraft type from a security perspective (i.e. ease of remarketing to other operators).

Aviation Finance portfolio by aircraft type as at 30 Jun 2016

DVB Bank's Aviation Finance: portfolio by aircraft type as at 30 June 2016

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