EANS-News: DVB Bank SE
DVB Group posts a solid start to 2009 - Interest margin
hits all-time high
Frankfurt am Main (euro adhoc) -
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Wolfgang F. Driese, CEO and Chairman of the Board of Managing Directors, commented on DVB Group's results for the first quarter of 2009: "DVB has held its course, despite the challenging situation on financial markets and the impact of recession on the international transport sector. DVB's integration in the German Cooperative Financial Services Network, led by DZ BANK, provides us with access to so-called 'retail liquidity' generated by German cooperative banks. DVB can continue to rely on this solid funding base. The Bank sustained the momentum in its new business; we thus managed to follow up on our successful track record of recent years with a profitable start to 2009. Whilst we are very satisfied with this result, the difficult environment makes it impossible to issue any forecast regarding the performance for the remainder of the 2009 business year."
Total income remained stable during the first quarter of 2009, at EUR63.3 million (down 0.6%).
New Transport Finance business totalled EUR1.12 billion during the first quarter (Q1 2008: EUR1.17 billion), with 39 new transactions. The average interest margin on new business reached an all-time high of 344 basispoints (Q1 2008: 161 basispoints). Even though this was a very positive development, it could not fully compensate for higher funding costs and, in particular, the significant impact of distortions on the money market, as a result of which DVB incurred additional expenses of EUR17.3 million. Due to these factors, net interest income declined by a marked 28.7%, to EUR30.1 million (Q1 2008: EUR42.2 million). Allowance for credit losses showed a net EUR0.4 million release (Q1 2008: net release of EUR7.4 million). Accordingly, net interest income after allowance for credit losses fell to EUR30.5 million, down 38.5%.
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 nearly tripled, from EUR13.5 million in the first quarter of 2008, to EUR32.9 million. This underlines the strong position held by DVB in structuring complex financing projects for its international clients, and in advising them.
Net income from financial instruments in accordance with IAS 39 (comprising net trading income, the hedge result, the result from the application of the fair value option, the result from derivatives entered into without intention to trade, and net income from investment securities) showed a deficit that widened to EUR5.3 million (Q1 2008 saw a EUR0.9 million deficit). Against the background of the financial markets crisis, the figure especially reflects increased volatility on foreign exchange and interest rate markets.
General administrative expenses rose by 12.4% to EUR36.2 million. Staff expenses were up 16.7%, to EUR21.7 million, particularly due to the hiring of 45 additional Transport Finance/Investment Management professionals for the Bank's worldwide offices. In this way, DVB expanded its resources in good time to provide even closer support to its clients during this challenging market phase. At EUR14.5 million, non-staff expenses remained virtually unchanged (EUR+0.8 million).
The result from operating activities before tax declined by 14.0% during the first quarter, to EUR27.1 million.
DVB reported total assets of EUR17.86 billion, up 2.8% as at 31 March 2009 (31 Dec 2008: EUR17.38 billion). The Bank's nominal customer lending (the aggregate of loans and advances to customers, guarantees and indemnities, and irrevocable loan commitments) totalled EUR19.56 billion - up 5.8% from the year-end 2008. In US dollar terms, customer lending volume only increased by 1.1%, to US$26.03 billion. Once again, the different portfolio growth rates were due to fluctuations in the euro/US dollar exchange rate: since the end of 2008, the euro has weakened against the US dollar, from US$1.39 to US$1.33 as at the reporting date. Hence, the growth in customer lending was more pronounced in euro terms.
DVB's two strategic indicators, return on equity (RoE) before tax and the cost/income ratio (CIR) developed as follows: RoE before tax declined by 6.8 percentage points, to 11.9% (Q1 2008: 18.7%). The CIR rose by 0.3 percentage points to 57.6%, (Q1 2008: 57.3%).
Calculated in accordance with Basel II, DVB's tier 1 ratio rose to 15.3% (31 December 2008: 13.9%), and the total capital ratio increased to 20.3% (31 December 2008: 18.2%).
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).
end of announcement euro adhoc
Further inquiry note:
Contact for this press release:
Elisabeth Winter, Manager Investor Relations
Phone +49 69 97 50-43 29
Email: elisabeth.winter@dvbbank.com
Branche: Banking
ISIN: DE0008045501
WKN: 804550
Börsen: Stuttgart / free trade
Düsseldorf / free trade
Frankfurt / regulated dealing/general standard