EANS-News: DVB Bank SE /
-------------------------------------------------------------------------------- Corporate news transmitted by euro adhoc. The issuer/originator is solely responsible for the content of this announcement. -------------------------------------------------------------------------------- 6-month report/Half-Yearly Financial Report 2011 Frankfurt am Main (euro adhoc) - DVB Group posts a marked increase to consolidated net income before taxes for the first half of 2011 DVB Bank remained on course during the first half of 2011, boosting its consolidated net income before taxes to EUR74.9 million, up 26.9% (H1 2010: EUR59.0 million). Wolfgang F. Driese, CEO and Chairman of the Board of Managing Directors, commented on DVB´s consolidated results for the first half of 2011: "We maintained the momentum seen during the record year 2010 during the first six months of 2011. New business has developed very favourably indeed, in terms of volumes, margins, and particularly regarding commission income. We anticipate a similar trend for the second half of the year, even though we are faced with manifold political and economic uncertainties around the world. As we expected, charter rates have come under pressure due to excess capacity pushing into the markets - particularly for tankers, bulk freighters and container carriers. Furthermore, the coming months will require our full attention and expertise. We are certainly prepared." DVB's income (comprising net interest income after allowance for credit losses, net fee and commission income, net income from financial instruments in accordance with IAS 39, results from investments accounted for using the equity method, and net other operating income/expenses) totalled EUR162.0 million, an increase of 15.8% over the results for the first half of 2010 (EUR139.9 million). At EUR112.2 million, net interest income increased by 2.5% year-on-year (H1 2010: EUR109.5 million). Even though new international Transport Finance business continued to increase, reflecting growth in global transport volumes, DVB maintained its business policy - one that is both risk-aware and committed. DVB originated 75 new transactions, with an aggregate volume of EUR2.4 billion (H1 2010: 54 new transactions with a total volume of EUR1.6 billion). The average interest margin on new business of 327 basis points remained at attractive levels (H1 2010: 349 basis points). Due to higher interest expenses (up 7.1% year-on-year) and allowance for credit losses of EUR18.4 million (H1 2010: EUR0.5 million), net interest income after allowance for credit losses declined by 13.9%, from EUR109.0 million to EUR93.8 million. Net fee and commission income, which primarily includes fees and commissions from new Transport Finance business, and - to an increasing extent - asset management and advisory fees, once again rose strongly to EUR53.5 million, up 29.5% year-on-year (H1 2010: EUR41.3 million). 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) particularly reflects increased volatility on foreign exchange and interest rate markets: during the first half of 2011 the net figure was positive, at EUR8.2 million, after a negative result of EUR14.4 million during the same period of 2010. General administrative expenses rose by 7.7% to EUR87.1 million. Whilst staff expenses declined by 1.2%, to EUR47.5 million, non-staff expenses (including depreciation, amortisation, impairment and write-ups) were up 20.7%, to EUR39.6 million. This increase was due to higher contributions and fees (specifically involving the bank levy and the contributions to BVR), higher costs for consultancy services as well as removal costs incurred at a branch office. DVB reported a slight decrease in total assets by 1.6% to EUR19.0 billion on the reporting date of 30 June 2011 (31 Dec 2010: EUR19.3 billion). The nominal volume of customer lending (the aggregate of loans and advances to customers, guarantees and indemnities, irrevocable loan commitments, and derivatives) decreased by 4.2%, to EUR18.4 billion. Due to the fact that 85.5% of customer lending is denominated in US dollars, a year-on-year comparison in US dollar terms (up 3.9% to US$26.6 billion) reflects business developments more accurately. In US dollar terms, all lending divisions posted increases in their respective business areas. Calculated in accordance with Basel II, DVB's tier 1 ratio rose to 20.1% (31 December 2010: 18.9%), and the total capital ratio increased to 23.3% (31 December 2010: 22.4%). DVB's successful business performance is also reflected in its key financial indicators. These developed as follows: return on equity (before taxes) was 14.4% - up 1.6 percentage points (H1 2010: 12.8%) and the cost/income ratio fell by 9.3 percentage points, to 48.3% (H1 2010: 57.6%). You can find an extensive video commentary on DVB´s half-yearly financial results 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). Further inquiry note: Elisabeth Winter Investor Relations Tel: +49 (0)69-97504-329 E-Mail: elisabeth.winter@dvbbank.com end of announcement euro adhoc -------------------------------------------------------------------------------- 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: Stuttgart, Düsseldorf, regulated dealing/general standard: Frankfurt language: English
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