DGAP-Adhoc: DVB Bank SE: DVB Bank increases consolidated net income (before taxes and IAS 39)

DVB Bank SE  / Key word(s): Final Results

02.03.2015 11:03

Dissemination of an Ad hoc announcement according to § 15 WpHG, transmitted
by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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Frankfurt/Main, 2 March 2015 - DVB Bank SE (ISIN DE0008045501), the
international transport finance specialist, posted consolidated net income
before taxes and IAS 39 of EUR116.8 million - up 10.2%. Results before IAS
39 were up 6.9%, to EUR304.5 million (2013: EUR284.8 million). These
increases were driven by two factors in particular: a marked increase in
net other operating income and expenses, to EUR30.1 million (largely
comprising contributions from Investment Management), and much lower
allowance for credit losses (EUR-25.5 million).

DVB closed 187 new transactions during 2014, representing a distinctly
increased volume of EUR6.3 billion, in Shipping Finance, Aviation Finance,
Offshore Finance and Land Transport Finance (2013: 173 new deals
representing a volume of EUR4.7 billion). The Bank achieved a gross average
margin of 260 basis points on new Transport Finance business (2013: 300
basis points). Net interest income decreased by 11.2%, to EUR215.9 million.
Allowance for credit losses declined by EUR25.5 million, 29.0%, to EUR62.4
million (2013: EUR87.9 million).

Net interest income after allowance for credit losses declined by 1.0%, to
EUR153.5 million (2013: EUR155.1 million), in spite of lower allowance for
credit losses, for three reasons: Firstly, the high liquidity inventory,
caused by unexpected and high early loan repayments, burdened net interest
income. Secondly, additional risk costs were recognised; and thirdly,
average lending volume also declined, placing an additional burden on net
interest income.

Net fee and commission income, which primarily includes fees and
commissions from the lending business, from asset management, and from
Corporate Finance advisory services, declined to EUR108.5 million, down
15.7% year-on-year (2013: EUR128.7 million).

Net other operating income/expenses rose to EUR30.1 million (2013: EUR-4.1
million). The Bank very successfully sold an investment related to its
Shipping Investment Management activities.

The (non-operating, always volatile) results from financial instruments in
accordance with IAS 39 swung to EUR-12.8 million, down EUR31.0 million
(2013: EUR18.2 million).

General administrative expenses rose by 5.0% to EUR187.7 million. Staff
expenses of EUR108.9 million increased 3.0% year-on-year (2013: EUR 105.7
million), whilst at EUR74.3 million, non-staff expenses were up by 8.8%
2013: EUR68.3 million).

Reflecting the IAS 39 result, consolidated net income before taxes showed a
16.3% decline, to EUR104.0 million (2013: EUR124.2 million).

Group strategic indicators reflected the business performance: return on
equity before taxes stood at 8.1% (2013: 10.3%), whilst the cost/income
ratio was 53.0% (2013: 45.7%) and risk-adjusted Economic Value Added
totalled EUR28.5 million (2013: EUR22.8 million)

At EUR26.2 billion, the volume of business in 2014 was up 6.5% on the
previous year (2013: EUR24.6 billion). Besides total assets of EUR24.5
billion (2013: EUR23.4 billion), the figure also includes irrevocable loan
commitments of EUR1.7 billion (2013: EUR1.2 billion). DVB's nominal
customer lending (the aggregate of loans and advances to customers,
guarantees and indemnities, irrevocable loan commitments, and derivatives)
increased by 12.0%, to EUR23.3 billion (2013: EUR20.8 billion), reflecting
the stronger US dollar.

DVB discloses capital ratios determined in accordance with the Basel III
regime (Advanced Approach) and after appropriation of profits. On this
basis, the common equity tier 1 ratio and the additional tier 1 ratio each
amounted to 18.7%, whilst the total capital ratio was 21.6%.

The Board of Managing Directors and the Supervisory Board will propose to
DVB Bank SE's Annual General Meeting, which will be held on 25 June 2015,
to pay an unchanged dividend of EUR0.60 per notional no-par value share. In
this way, DVB will provide its shareholders with an adequate dividend yield
of 2.43%, whilst further strengthening the Bank's liable capital.


Contact for this ad-hoc disclosure:
Ms Elisabeth Winter
Head of Group Corporate Communications
Managing Director 
Phone: +49 69 9750 4329
E-mail: elisabeth.winter@dvbbank.com


02.03.2015 The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

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Language:     English
Company:      DVB Bank SE
              Platz der Republik 6
              60325 Frankfurt am Main
              Germany
Phone:        069-97504-329
Fax:          069-97504-850
E-mail:       info@dvbbank.com
Internet:     www.dvbbank.com
ISIN:         DE0008045501
WKN:          804550
Listed:       Regulated Market in Frankfurt (General Standard); Regulated
              Unofficial Market in Dusseldorf, Stuttgart
 
End of Announcement                             DGAP News-Service
 
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