DVB Bank SE

EANS-News: Nine-month results 2009: DVB posts solid consolidated net income before taxes

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quarterly report

Frankfurt am Main (euro adhoc) - DVB posted good results, with consolidated net income before taxes of EUR77.9 million (-22.3%), in an international Transport Finance environment that remains challenging.

Wolfgang F. Driese, CEO and Chairman of the Board of Managing Directors, assessed DVB´s consolidated results:

"Considering the prevailing difficulties on financial markets and the continuing recession burdening international transport markets, we are satisfied with the consolidated net income before taxes posted. Our focus on international Transport Finance has proven to be sustainable during times of crisis.

A market environment characterised by less pronounced competition allowed us to enter into numerous new exposures where returns once again adequately reflect the risk involved. Moreover, we managed to continuously reduce the burden of the significant money market distortions on our results considerably during the course of the year.

Due to the continued global economic troubles, we needed to recognise EUR17.2 million in allowance for credit losses during the period under review. Looking towards the year 2009 as a whole, we anticipate allowance for credit losses to be at a higher, yet clearly manageable level."

The individual components of the nine-month results developed as follows:

Total 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 equity interests accounted for using the equity method, and net other operating income/expenses) declined by 7.1%, from EUR208.5 million to EUR193.8 million.

Net interest income (which is generated predominantly in DVB Group´s Transport Finance business) decreased to EUR126.4 million (down 9.5%), and net interest income after allowance for credit losses fell by 29.1%, from EUR154.1 million to EUR109.2 million. With new business volumes at EUR2.02 billion (Q3 2008: EUR5.12 billion), the average interest margin on new Transport Finance business showed a marked increase from 178 bp to 335 bp. DVB succeeded in further mitigating the impact of money market distortions, reducing the additional cost burden resulting from turbulence on global financial markets to a mere EUR1.0 million in the third quarter of 2009, following EUR17.3 million in the first quarter and EUR2.3 million in the second. The aggregate impact for the first nine months was EUR20.6 million. The reduction was achieved by transferring loan agreements to quarterly interest rate fixings, and basing them on current interbank rates instead of the LIBOR reference rate, which has been distorted.

Against the background of continued global economic troubles, DVB recognised EUR17.2 million in allowance for credit losses (Q3 2008: release of EUR14.4 million).

Net fee and commission income showed a welcome 3.6% increase, from EUR66.5 million to EUR68.9 million, mainly attributable to higher lending fees generated from structured financings, and advisory fees.

General administrative expenses were up 7.0%, to EUR115.9 million. Staff expenses increased by 6.7%, to EUR67.2 million, while non-staff expenses were up by 7.5%, to EUR48.7 million.

DVB reported total assets of EUR17.44 billion, slightly up by 0.3% year-on-year. DVB´s nominal customer lending comprises the aggregate of loans and advances to customers, guarantees and indemnities, and irrevocable loan commitments; it is determined through consolidation in line with applicable regulatory provisions. In euro terms, nominal customer lending amounted to EUR17.50 billion, down 5.4% compared to the year-end 2008 that was mainly attributable to a decline in credit commitments. In US dollar terms, customer lending volume decreased only slightly, by 0.5%, to USD25.62 billion. The diverging portfolio growth rates were due to fluctuations in the euro/US dollar exchange rate: since the end of 2008, the euro has strengthened against the US dollar, from USD1.39 to USD1.46 as at the reporting date. Hence, the decline in customer lending was more pronounced in euro terms.

DVB's key financial indicators developed as follows (in accordance with IFRS): the return on equity before tax was down 6.7 percentage points, to 11.4% (Q3 2008: 18.1%), mainly due to the impact of money market distortions. The cost/income ratio fell by one percentage point, to 54.9% (Q3 2008: 55.9%).

DVB's tier 1 ratio rose to 15.4% (31 December 2008: 13.9%), and the total capital ratio increased to 19.8% (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
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Further inquiry note:

Contact for this press release: 
Elisabeth Winter, Manager Investor Relations
Phone +49 69 9750-4329
Elisabeth.Winter@dvbbank.com

Branche: Banking
ISIN: DE0008045501
WKN: 804550
Börsen: Stuttgart / free trade
Düsseldorf / free trade
Frankfurt / regulated dealing/general standard
Original-Content von: DVB Bank SE, übermittelt durch news aktuell

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