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Shipping Finance – Portfolio

Thanks to our specialist and in-depth expertise, our Shipping Finance division continuously provides our clients with customised financing – not only in a good but also in a challenging market environment. 2016 was yet another year of demanding conditions, in which the financial results achieved by Shipping Finance were heavily impacted by the ongoing challenging market conditions in some shipping sectors.

Extract from Shipping Finance’s segment report as at 31 December 2016

€ mn 31 Dec 2016 31 Dec 2015 %
Net interest income 95.4 87.4
Allowance for credit losses –223.9 –76.6
Net interest income after allowance for credit losses –128.5
Net fee and commission income 35.4
Total income (excluding the IAS 39 result) –106.3
General administrative expenses1) –20.6 –32.2 –36.0
Net segment income before taxes –128.0 11.5

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 31 December 2016, our Shipping Finance division had a loan portfolio of €11.9 billion (31 December 2015: €11.8 billion). Diversification and granularity in the portfolio are key pillars of our risk management philosophy: the Shipping Finance portfolio is thus well diversified across the shipping spectrum, in terms of sector/subsector, asset, geographic exposure, client concentration and types of financing. Additionally, based on Shipping Research’s input, the portfolio is managed away from perceived higher risk areas.

Shipping Finance portfolio by vessel type as at 31 December 2016

Chart “DVB Bank's Shipping Finance portfolio by vessel types as at 31 December 2016”
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