DVB Bank AG / Half Year Results
14.08.2008
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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At EUR85.1 million, DVB Banks profit from ordinary activities before tax
for the first half of 2007 increased by 9.7% compared to the previous year
(H1 2007: EUR77.6 million), equivalent to return on equity before tax of
25.3% (26.0%).
Individual operating result items developed as follows: net interest income
after allowance for credit losses totalled EUR102.5 million, up 8.2 % on
the previous years figure of EUR94.7 million. The excellent quality of
DVBs credit portfolio was evident in the reversal of EUR11.7 million in
allowance for credit losses. Net fee and commission income rose by 12.1% in
the first half of 2008, to EUR35.3 million. The figure includes loan
commissions from new Transport Finance commitments arranged, as well as
advisory fees generated by the Banks Investment Management activities.
General administrative expenses increased by 12.4%, to EUR71.8 million,
reflecting the continued growth in DVB´s business activities and associated
new hiring: at 30 June 2008, DVB Group (including TES Aviation) employed
536 staff (30 June 2007: 419).
DVB Bank AG reported total assets of EUR13.2 billion, up slightly by 0.4%
(31 Dec 2007: EUR13.1 billion). DVBs nominal customer lending (the
aggregate of loans and advances to customers, guarantees and indemnities,
and irrevocable loan commitments) rose by 2.3%, from EUR14.37 billion to
EUR14.71 billion. The continued appreciation of the euro versus the US
dollar absorbed some of the underlying growth: DVB's accounting currency is
the euro, whereas 79% of its aggregate customer lending is denominated in
US dollars. At 9.6%, customer lending in US dollar terms once again showed
a higher growth rate than in euro terms, rising to USD23.19 billion (31 Dec
2007: USD21.16 billion). As in previous years, to minimise the impact of
exchange rate fluctuations as a source of uncertain business results, the
Bank hedged projected US dollar net income from interest and commissions.
Return on equity before tax is one of the two key strategic indicators
employed by DVB Group: measured according to IFRS, it was 25.3% (H1 2007:
26.0%). The cost/income ratio according to IFRS increased by 1.8%
percentage points, to 49.5% (H1 2007: 47.7%). Based on German GAAP (HGB),
return on equity before tax for the first half of 2008 was 22.2% (H1 2007:
24.6%), whilst the cost/income ratio rose to 49.4% (H1 2007: 48.4%).
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 tier 1 capital
ratio to 12.3% and the total capital ratio to 17.8% Based on the previous
regulatory framework (Basel I), the core capital ratio declined slightly to
6.2% (31 Dec 2007: 6.4%), whilst the total capital ratio stood at 9.1% (31
Dec. 2007: 9.4%). The capital ratios shown exclude the funds raised through
the capital increase successfully concluded in 2008, as the fresh capital
was available to DVB after the period under review, in July 2008.
Elisabeth Winter, DVB Bank AG, Investor Relations, Phone +49 69 9750 4329,
Email: elisabeth.winter@dvbbank.com
DGAP 14.08.2008
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Language: English
Issuer: DVB Bank AG
Platz der Republik 6
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: Six-month results 2008: DVB weathers financial markets crisis, increases pre-tax profits by 9.7%
| Source: EQS Group AG