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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Corporate news transmitted by euro adhoc. The issuer/originator is solely
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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