DVB Bank AG / Quarter Results
14.05.2008
Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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DVB Groups net interest income and net fee and commission income for the
first quarter of 2008 outperformed the levels achieved in the same quarter
of the previous year. Profit from ordinary activities before tax amounted
to EUR 31.5 million for the first quarter of the current business year,
down 7.6% (Q1 2007: EUR 34.1 million). The figure for the first quarter of
the previous year was influenced by the sale of a fund investment.
Mr. Wolfgang F. Driese, Chairman of the Board of Managing Directors of DVB
Bank AG, summarised the Banks first-quarter results: 'We experienced a
strong development in our Transport Finance business during the first three
months. Typically, the focus during the first quarter is on preparing
rather than closing transactions: this relationship tends to be reversed
in the fourth quarter. These are good signs for DVBs performance during
the remainder of the current year, for which I do remain optimistic. Thanks
to our business model, we are not directly affected by the financial
markets crisis. The indirect impact in the form of higher refinancing
costs is passed on in full when originating new business.'
Individual operating result items developed as follows: net interest income
after loan losses totalled EUR 49.6 million, up 25.3% on the previous
years figure of EUR 39.6 million. Net fee and commission income increasedby 20.5%, to EUR 13.5 million. Both operating result items reflect the
strong growth of the Transport Finance business. Net income from financial
instruments in accordance with IAS 39 decreased to EUR -0.9 million (Q1
2007: EUR 12.6 million). It should be noted that the figure for the first
quarter of the previous year was influenced by the sale of a fund
investment.
General administrative expenses only rose slightly, by 3.2% to EUR 32.2
million. Staff expenses increased by 5.7 %, to EUR 18.6 million. The Bank
hired additional Transport Finance and Investment Management experts to
boost its worldwide business activities. The number of active employees in
the DVB Group increased to 502 (up 28.7%, compared to 390 as at 31 March
2007). Non-staff expenses remained virtually unchanged, at EUR 13.7 million
(+EUR 0.1 million).
DVB Bank AG reported total assets of EUR 12.8 billion (31 Dec 2007: EUR
13.1 billion). The 2.7% decrease was due to flows around the reporting
date. DVBs nominal customer lending (the aggregate of loans and advances
to customers, guarantees and indemnities, and irrevocable loan commitments)
totalled EUR 13.85 billion down 3.6% from the year-end 2007 (31 Dec 2007:
EUR 14.37 billion). The further appreciation of the euro versus the US
dollar more than absorbed the underlying growth in US dollar customer
lending. In fact, customer lending in US dollar terms showed an increase of
3.5% to USD 21.91 billion, compared to the year-end 2007 (USD 21.16
billion).
DVB has applied the Advanced Approach under Basel II to calculate capital
ratios since the beginning of 2008. This has provided significant relief in
terms of risk-weighted assets to be included, increasing the core capital
ratio to 11.9%, and the total capital ratio to 17.3%.
Based on the previous regulatory framework (Basel I), the core capital
ratio remained stable, at 6.4% (31 Dec 2007: 6.4%), whilst the total
capital ratio stood at 9.6% (9.4%).
Return on equity before tax (RoE) and the cost/income ratio (CIR), the two
key strategic indicators employed by DVB Group, showed a significant effect
(measured according to IFRS) resulting from the change in net income from
financial instruments in accordance with IAS 39, as discussed above: return
on equity for the first quarter of 2008 was 18.7% (Q1 2007: 23.3%), whilst
the cost/income ratio rose by 9.6 percentage points, to 57.3% (47.7%).
Based on German GAAP (HGB), the two indicators were clearly less sensitive
to the basis effect in net income from financial instruments, and were
largely stable, with RoE of 20.6% (down by 1.5 percentage points) and CIR
up slightly (by 1.9 percentage points) to 49.9%. Both indicators (based on
German GAAP) were thus in line with DVB Groups long-term targets.
Note to Editors:
DVB Bank AG, 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 AG is
listed on the Frankfurt Stock Exchange (ISIN: DE0008045501).
Prof. Dr. Borislav Bjelicic
Telefon +49 69 9750 4390
Fax +49 69 9750 4333
DVB Bank Aktiengesellschaft
Corporate Communications
Friedrich-Ebert-Anlage 2 14
60325 Frankfurt am Main
Germany
borislav.bjelicic@dvbbank.com
www.dvbbank.com
DGAP 14.05.2008
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Language: English
Issuer: DVB Bank AG
Friedrich-Ebert-Anlage
60325 Frankfurt am Main
Deutschland
Phone: 069-97504-329
Fax: 069-97504-333
E-mail: elisabeth.winter@dvbbank.com
Internet: www.dvbbank.com
ISIN: DE0008045501
WKN: 804550
Listed: Regulierter Markt in Frankfurt (General Standard);
Freiverkehr in Stuttgart, Düsseldorf
End of News DGAP News-Service
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DGAP-News: DVB Group posts profitable start into 2008: Continued strong new Transport Finance business
| Source: EQS Group AG