DVB Bank SE

EANS-News: DVB Bank SE
consolidated net income before IAS 39 and taxes as at 31 March 2012 only down slightly year-on-year


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3-month report


Frankfurt am Main (euro adhoc) - Consolidated net income before IAS 39 and taxes
declined slightly to EUR37.1 million for the first quarter of 2012, down 6.3%
year-on-year (Q1 2011: EUR39.6 million). 

Wolfgang F. Driese, CEO and Chairman of the Board of Managing Directors,
commented on DVB's quarterly results:

"As expected, the business environment we operate in is a very challenging one.
Besides the general global economic weakness and the uncertainty caused by the
sovereign debt crisis, our clients and the markets we cover are burdened
especially by distortions as a result of significant excess capacity in some
shipping subsegments - specifically, tankers, bulkers and container vessels.
Managing risks therefore remains at the heart of what we do. Despite the
challenging environment and the subdued start to 2012 that we have experienced
in this first quarter, we nevertheless affirm our target for the year as a
whole: to generate results that will be comparable to the previous year."

Total income (comprising net interest income after allowance for credit losses,
net fee and commission income, results from investments in companies accounted
for using the equity method, and net other operating income/expenses) of E82.0
million for the first quarter of 2012 almost matched the previous year's level
(down 1.0% - Q1 2011: EUR82.8 million). 

Net interest income of EUR53.5 million was up 10.5% year-on-year (Q1 2011:
EUR48.4 million). This - once again - positive development was attributable to
new Transport Finance business originated at higher margins. New business in
Shipping Finance, Aviation Finance and Land Transport Finance comprised 28
transactions with an aggregate volume of EUR1.0 billion and an average interest
margin of 361 basis points (Q1 2011: 32transactions with an aggregate volume of
EUR1.0 billion and an average interest margin on new business of 323 basis
points). Portfolio-based allowance for credit losses of EUR3.3million was
recognised during the first quarter of 2012 (Q1 2011: release of EUR3.4million).
Accordingly, net interest income after allowance for credit losses declined
slightly to EUR50.2 million, down 3.1%. 

Net fee and commission income, which primarily includes fees and commissions
from new Transport Finance business, and asset management and advisory fees, was
down 9.9%, to EUR24.5 million (Q1 2011: EUR27.2 million). 

General administrative expenses rose 3.9%, to EUR44.9 million. Staff expenses
increased by 6.4%, to EUR25.0 million, reflecting the fact that the DVB Group
employed 55 more staff members at the end of the first quarter of 2012, compared
to the same period of the previous year (31 March 2012: 687 employees; 31 March
2011: 632 employees). Higher bank levy charges and contributions to BVR, the
Association of German Cooperative Banks, meant that non-staff expenses
(including depreciation, amortisation and write-downs) increased marginally by
EUR0.2 million, to EUR19.9 million. 

Even though DVB hedges its risk exposure to interest rate and currency
fluctuations to the greatest extent possible, the Bank is subject to significant
earnings volatility due to the application of IAS 39; from DVB's point of view,
it is impossible to manage these swings whilst adhering to its economic hedge
targets. Specifically, 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
marked swing to -EUR15.1 million (Q1 2011: EUR13.2 million), reflecting higher
volatility levels prevailing on foreign exchange and interest rate markets.
Consolidated net income before taxes therefore declined to EUR22.0 million for
the first quarter of 2012, down by 58.3% year-on-year. 

DVB reported total assets of EUR22.5 billion as at 31 March 2012, up 2.3% from
the 2011 year-end (31 December 2011: EUR22.0 billion). The nominal volume of
customer lending (the aggregate of loans and advances to customers, guarantees
and indemnities, irrevocable loan commitments, and derivatives) decreased
slightly by 2.3%, to EUR21.2 billion. Due to the fact that 87.0% of customer
lending is denominated in US dollars, a year-on-year comparison in US dollar
terms (up +1.1% to US$28.4 billion) reflects business developments more
accurately. 

Calculated in accordance with Basel II, DVB's tier 1 ratio rose to 20.7% (31
December 2011: 19.7%), and the total capital ratio increased to 23.7% (31
December 2011: 21.8%). 

Return on equity before taxes stood at 7.9% (Q1 2011: 22.3%). The cost/income
ratio rose by 17.3 percentage points to 63.9% (Q1 2011: 46.6%). 

You can find a video commentary by Wolfgang F. Driese, CEO and Chairman of the
Board of Managing Directors of DVB Bank SE, on our website: www.dvbbank.com. 

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). {www.dvbbank.com}[HYPERLINK:
http://www.dvbbank.com]


Further inquiry note:
Elisabeth Winter
Investor Relations
Tel: +49 (0)69-97504-329
E-Mail: elisabeth.winter@dvbbank.com

end of announcement                               euro adhoc 
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company:     DVB Bank SE
             Platz der Republik 6
             D-60325 Frankfurt am Main
phone:       +49 (0)69 9750-40
FAX:         +49 (0)69 9750-4444
mail:     info@dvbbank.com
WWW:      http://www.dvbbank.com
sector:      Banking
ISIN:        DE0008045501
indexes:     
stockmarkets: free trade: Düsseldorf, Stuttgart, regulated dealing/general
             standard: Frankfurt 
language:   English
 

 

 



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