EANS-News: DVB picks up speed during the third quarter of 2010, in a controlled manner - posting record nine-month results
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9-month report
Frankfurt am Main (euro adhoc) - Consolidated net income before taxes was up 52.9%, to EUR 119.1 million.
Wolfgang F. Driese, CEO and Chairman of the Board of Managing Directors, assessed DVB´s consolidated results, outlining the prospects:
"We have picked up speed over recent months, and in a controlled manner. Looking at the position of strength DVB has maintained throughout the crisis, it is fair to expect that we will be able to resume the positive earnings trend we were on before the crisis. The results we achieved for the first nine months of 2010 have affirmed our view.
From our point of view, market volatility is here to stay, and it will continue to command our full attention. We are optimistic, but in a cautious way: this is because the recovery in the global economy is taking place with marked regional differences; also, fluctuating demand in the transport markets is still being met by significant newbuild capacity becoming available."
Total income rose by 24.7%, from EUR 193.8 million to EUR 241.6 million.
Net interest income rose by 16.0%, to EUR 146.6 million, and net interest income after allowance for credit losses was up 22.5%, from EUR 109.2 million to EUR 133.8 million. DVB succeeded in closing several attractive new transactions with an appropriate risk/return ratio. Specifically, new Transport Finance business during the period under review comprised 93 transactions with an aggregate volume of EUR 3.0 billion (9m 2009: 82 transactions/EUR 2.0 billion). Net allowance for credit losses amounted to EUR 12.8 million during the period under review (9m 2009: EUR 17.2 million).
Net fee and commission income showed a welcome 14.1% increase (from EUR 68.9 million to EUR 78.6 million), mainly attributable to lending fees generated from structured financings in Transport Finance, and advisory fees.
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) moved from EUR 6.3 million to EUR 2.8 million. The net figure reflects the level of volatility on foreign exchange and interest rate markets.
General administrative expenses were up 5.7%, to EUR 122.5 million. Staff expenses rose by EUR 2.5 million (+3.7%) to EUR 69.7 million. The number of active DVB employees increased to 579, from 571 as at 30 September 2009. New hires included new Transport Finance experts as well as staff in service units. The 8.4% increase in non-staff expenses, from EUR 48.7 million to EUR 52.8 million, primarily reflected higher expenses in banking operations (IT costs, rents, etc.), as well as an increased need for consultancy services.
DVB reported total assets of EUR 19.1 billion, up 10.4% as at 30 September 2010 (31 December 2009: EUR 17.3 billion).
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 EUR 18.4 billion, up 6.4% from the year-end 2009. In US dollar terms, however, customer lending only grew by 0.8%, to USD 25.1 billion, reflecting exchange rate developments.
DVB's successful business performance is also reflected in its key financial indicators. These developed very positively: return on equity (before taxes) was 16.9% - up 5.5 percentage points (9m 2009: 11.4%). Accordingly, the cost/income ratio improved by 6.7 percentage points, to 48.2% (9m 2009: 54.9%).
DVB's tier 1 ratio rose to 15.5% (31 December 2009: 14.2%), and the total capital ratio increased to 18.8% (31 December 2009: 18.0%).
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 --------------------------------------------------------------------------------
Further inquiry note:
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 of: DVB Bank SE, transmitted by news aktuell