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Land Transport Finance – Portfolio

Thanks to its globally-unique product platform, our Land Transport Finance division is constantly active in Europe, North America, and Australia. We fully appreciate the increasing maturity of our markets – whilst recognising the growing cyclicality of the sector segments. Due to our research, we are able to better assess these developments. Thanks to this special sector expertise, we can reliably bridge the gap between financing providers and the market, even during times of economic uncertainty. Our clearly defined asset finance set-up, and our cycle-neutral strategy, have yielded good results over the past years.

Extract from Land Transport Finance's segment report as at 30 Jun 2016

€ mn 30 Jun 2016 30 Jun 2015 %
Net interest income 11.2
14.0 –20.0
Allowance for credit losses –0.2
–0.2
Net interest income after allowance for credit losses 11.0 13.8 –20.3
Net fee and commission income 5.2 2.9 79.3
Total income (excluding the IAS 39 result) 16.4 16.8 2.4
General administrative expenses1) –1.8 –1.8
Net segment income before IAS 39, bank levy, BVR Deposit Guarantee Scheme and taxes  14.6 15.0 2.7
Net segment income before bank levy, BVR Deposit Guarantee Scheme and taxes 14.6 15.0 2.7

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.

Customer lending in the Land Transport Finance division totalled €1.7 billion as at 30 June 2016 (31 December 2015: €1.7 billion). The portfolio is broadly diversified by the type of transport asset, region, borrower, and manufacturer. In line with our strategy, financings of new and used freight cars account for the largest share of or portfolio. Thanks to their granularity, freight cars are an asset class with an excellent risk profile and a high degree of intrinsic diversification.

Land Transport Finance portfolio by vehicle type as at 30 Jun 2016

DVB Bank's Land Transport Finance portfolio by vehicle type as at 30 June 2016

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