13.11.2008
DVB Group publishes nine-month results for 2008: DVB maintains successful performance in its Transport Finance business, with profit before taxes of EUR100.2 million
With net interest income after allowance for credit losses up 9.9%, and net fee and commission income up 19.0% year-on-year, DVB maintained the strong performance of its financing and advisory businesses in Transport Finance. At EUR100.2 million, however, the profit from ordinary activities before tax for the first nine months of 2008 declined by 9.1% compared to the same period of the previous year. Net income from financial instruments in accordance with IAS 39 declined significantly, due to an impairment of securities. Accordingly, return on equity before tax (IFRS) was 18.1% (9m 2007: 24.9%).
Wolfgang F. Driese, Chairman of the Board of Managing Directors of DVB Bank SE, summarised the Bank's nine-month results: "We are very satisfied with the results we have achieved in the current market environment. The fact that we increased the aggregate of net interest income after allowance for credit losses and net fee and commission income by 12.5% year-on-year, to a total of EUR220.6 million, clearly demonstrates that a specialist bank with a clearly-defined business model can perform well during times of trouble. Nevertheless, our net financial result was burdened by an impairment charge which we had to recognise on securities held as a liquidity reserve for payments. This is the one aspect where we were affected by the financial markets crisis."
"We expect good results for the full 2008 financial year to be in line with the previous year. Going forwards, there are three important points to note. Firstly, although we perceive indications for a clear economic slowdown in all parts of the world, competition in our line of business has diminished significantly: we thus envisage sufficient opportunities to generate new business. Secondly, at present, we are able to pass on higher refinancing costs. It is our hope that competitors seeking state support will not use this to once again compete on price. Recognising the need to adequately price risks is one of the lessons learned during this crisis. Finally, as we conduct a large part of our business in US dollars, our scope for growth will also depend upon the future development of the euro/US dollar exchange rate."
Individual operating result items developed as follows: net interest income after allowance for credit losses totalled EUR154.1 million, up 9.9% on the previous year’s figure of EUR140.2 million. Net fee and commission income rose by 19.0% to EUR66.5 million, reflecting the strong growth in DVB's business activities – with the main contributions from commissions for arranging structured financings, as well as fund management fees generated by the Bank's Investment Management division.
As in previous years, to minimise the impact of exchange rate fluctuations as a source of uncertain business results, the Bank hedged projected US dollar net income from interest and commissions.
Net income from financial instruments in accordance with IAS 39 swung to a deficit of EUR31.4 million (9m 2007: EUR12.5 million). The decline was attributable to two factors: firstly, net income from financial instruments in accordance with IAS 39 for the first nine months of 2007 included gains realised upon disposal of an investment by a fund managed by DVB, a non-recurring effect that was inapplicable in the 2008 financial year. Secondly, this year the net figure includes an impairment charge recognised on securities DVB holds as a liquidity reserve for payments. An impairment test carried out as at the reporting date (30 September 2008) necessitated a re-measurement of the EUR85.0 million position, as a result of which a EUR25.0 million impairment charge was recognised.
General administrative expenses were up by 9.7%, from EUR98.7 million (9m 2007) to EUR108.3 million, reflecting the continued growth in DVB's business activities. DVB employed 532 people as at 30 September 2008 (including staff at TES Aviation), up 30.7% compared with staffing numbers a year ago.
DVB reported total assets of EUR15.31 billion, up 16.4% as at 30 September 2008 (31 Dec 2007: EUR13.15 billion).
DVB's nominal customer lending (the aggregate of loans and advances to customers, guarantees and indemnities, and irrevocable loan commitments) rose by 21.6%, from EUR14.37 billion to EUR17.48 billion. The business expansion highlights DVB´s top position in international transport finance.
Return on equity before tax is one of the two key strategic indicators employed by DVB Group: measured according to IFRS, it was 18.1% – down 6.8 percentage points (Q3 2007: 24.9%). The decline was due to the effects of this year's share capital increase, and the impairment of securities. The cost/income ratio according to IFRS increased by 7.2% percentage points, to 55.9% (Q3 2007: 48.7%).
Based on German GAAP (HGB), return on equity for the third quarter of 2008 was 17.9% (Q3 2007: 25.4%), whilst the cost/income ratio improved slightly to 46.1% (47.1%).
DVB has applied the Advanced Approach under Basel II to calculate capital ratios since the beginning of 2008. Accordingly, the tier 1 ratio was 14.2%, and the total capital ratio 18.4%. The capital ratios shown include the funds raised through the capital increase successfully concluded in July 2008.
DVB Group - Consolidated income statement (as at 30 September 2008)
DVB Group - Consolidated balance sheet (as at 30 September 2008)
Contact for this press release:
Elisabeth Winter, Senior Vice President, Manager Investor Relations, phone +49 69 97 50 43 29, elisabeth.winter@dvbbank.com
Note to Editors:
DVB Bank SE, based in Frankfurt/Main, is an international advisory bank and finance house that specialises in the global transport market. DVB offers integrated financing solutions and advisory services in respect of Shipping, Aviation, and Land Transport. The Bank operates out of offices in Frankfurt/Main, Hamburg, London, Cardiff, Rotterdam, Bergen/Oslo, Piraeus, Zurich, Singapore, Tokyo, Hong Kong, New York and Curaçao. DVB Bank SE is listed at the Frankfurt Stock Exchange (ISIN: DE0008045501).
Wolfgang F. Driese, Chairman of the Board of Managing Directors of DVB Bank SE, summarised the Bank's nine-month results: "We are very satisfied with the results we have achieved in the current market environment. The fact that we increased the aggregate of net interest income after allowance for credit losses and net fee and commission income by 12.5% year-on-year, to a total of EUR220.6 million, clearly demonstrates that a specialist bank with a clearly-defined business model can perform well during times of trouble. Nevertheless, our net financial result was burdened by an impairment charge which we had to recognise on securities held as a liquidity reserve for payments. This is the one aspect where we were affected by the financial markets crisis."
"We expect good results for the full 2008 financial year to be in line with the previous year. Going forwards, there are three important points to note. Firstly, although we perceive indications for a clear economic slowdown in all parts of the world, competition in our line of business has diminished significantly: we thus envisage sufficient opportunities to generate new business. Secondly, at present, we are able to pass on higher refinancing costs. It is our hope that competitors seeking state support will not use this to once again compete on price. Recognising the need to adequately price risks is one of the lessons learned during this crisis. Finally, as we conduct a large part of our business in US dollars, our scope for growth will also depend upon the future development of the euro/US dollar exchange rate."
Individual operating result items developed as follows: net interest income after allowance for credit losses totalled EUR154.1 million, up 9.9% on the previous year’s figure of EUR140.2 million. Net fee and commission income rose by 19.0% to EUR66.5 million, reflecting the strong growth in DVB's business activities – with the main contributions from commissions for arranging structured financings, as well as fund management fees generated by the Bank's Investment Management division.
As in previous years, to minimise the impact of exchange rate fluctuations as a source of uncertain business results, the Bank hedged projected US dollar net income from interest and commissions.
Net income from financial instruments in accordance with IAS 39 swung to a deficit of EUR31.4 million (9m 2007: EUR12.5 million). The decline was attributable to two factors: firstly, net income from financial instruments in accordance with IAS 39 for the first nine months of 2007 included gains realised upon disposal of an investment by a fund managed by DVB, a non-recurring effect that was inapplicable in the 2008 financial year. Secondly, this year the net figure includes an impairment charge recognised on securities DVB holds as a liquidity reserve for payments. An impairment test carried out as at the reporting date (30 September 2008) necessitated a re-measurement of the EUR85.0 million position, as a result of which a EUR25.0 million impairment charge was recognised.
General administrative expenses were up by 9.7%, from EUR98.7 million (9m 2007) to EUR108.3 million, reflecting the continued growth in DVB's business activities. DVB employed 532 people as at 30 September 2008 (including staff at TES Aviation), up 30.7% compared with staffing numbers a year ago.
DVB reported total assets of EUR15.31 billion, up 16.4% as at 30 September 2008 (31 Dec 2007: EUR13.15 billion).
DVB's nominal customer lending (the aggregate of loans and advances to customers, guarantees and indemnities, and irrevocable loan commitments) rose by 21.6%, from EUR14.37 billion to EUR17.48 billion. The business expansion highlights DVB´s top position in international transport finance.
Return on equity before tax is one of the two key strategic indicators employed by DVB Group: measured according to IFRS, it was 18.1% – down 6.8 percentage points (Q3 2007: 24.9%). The decline was due to the effects of this year's share capital increase, and the impairment of securities. The cost/income ratio according to IFRS increased by 7.2% percentage points, to 55.9% (Q3 2007: 48.7%).
Based on German GAAP (HGB), return on equity for the third quarter of 2008 was 17.9% (Q3 2007: 25.4%), whilst the cost/income ratio improved slightly to 46.1% (47.1%).
DVB has applied the Advanced Approach under Basel II to calculate capital ratios since the beginning of 2008. Accordingly, the tier 1 ratio was 14.2%, and the total capital ratio 18.4%. The capital ratios shown include the funds raised through the capital increase successfully concluded in July 2008.
DVB Group - Consolidated income statement (as at 30 September 2008)
DVB Group - Consolidated balance sheet (as at 30 September 2008)
Contact for this press release:
Elisabeth Winter, Senior Vice President, Manager Investor Relations, phone +49 69 97 50 43 29, elisabeth.winter@dvbbank.com
Note to Editors:
DVB Bank SE, based in Frankfurt/Main, is an international advisory bank and finance house that specialises in the global transport market. DVB offers integrated financing solutions and advisory services in respect of Shipping, Aviation, and Land Transport. The Bank operates out of offices in Frankfurt/Main, Hamburg, London, Cardiff, Rotterdam, Bergen/Oslo, Piraeus, Zurich, Singapore, Tokyo, Hong Kong, New York and Curaçao. DVB Bank SE is listed at the Frankfurt Stock Exchange (ISIN: DE0008045501).