DVB achieved first-quarter results 2013 clearly exceeding the previous year's figure – despite a persistently challenging environment

Frankfurt/Main, 14 May 2013 – DVB posted consolidated net income before IAS 39 and taxes of €44.7 million for the first quarter of 2013, up 20.5% year-on-year (Q1 2012: €37.1 million).

Wolfgang F. Driese, CEO and Chairman of the Board of Managing Directors, comments on DVB’s first-quarter results:

“We assess the operating performance in the first quarter of 2013 as a very good start into the new business year. But it would be premature to raise expectations beyond what we have targeted to deliver for the whole of 2013, i.e. a result comparable to the previous year.

There are various reasons for a somewhat cautious outlook into 2013:

A relatively soft performance during the previous year’s first quarter, less new business volume than expected – in particular in Aviation Finance, reflecting the high liquidity of the capital markets and their appetite for aviation assets – and finally the still challenging risk situation in some shipping segments."

Total income (comprising net interest income after allowance for credit losses, net fee and commission income, results from investments in companies accounted for using the equity method, and net other operating income/expenses), rose by 4.9%, to €86.0 million during the first quarter of 2013 (Q1 2012: €82.0 million).

Net interest income after allowance for credit losses was up by 27.7%, to €64.1 million. New business in Shipping Finance, Aviation Finance, Offshore Finance and Land Transport Finance comprised 29 transactions with an aggregate volume of €0.9 billion and an average interest margin of 315 basis points (Q1 2012: 28 transactions with an aggregate volume of €1.0 billion and an average interest margin on new business of 361 basis points). Allowance for credit losses of €4.2 million was recognised during the first quarter of 2013, mainly as a portfolio-based provision for Shipping Finance.

Net fee and commission income, which includes fees and commissions from new Transport Finance business, and asset management and advisory fees, declined slightly, by 2.4%, to €23.9 million (Q1 2012: €24.5 million).

General administrative expenses fell by 8.0%, to €41.3 million. Staff expenses increased by 4.4%, to €26.1 million, whilst non-staff expenses declined by €4.7 million, to €15.2 million, reflecting lower expenses for advisory services and contributions.

Net result from financial instruments in accordance with IAS 39 showed a marked swing to €1.3 million (Q1 2012: €–15.1 million), reflecting the volatility levels prevailing on foreign exchange and interest rate markets.

DVB more than doubled consolidated net income before taxes for the first quarter of 2013, to €46.0 million (Q1 2012: €22.0 million).

DVB reported total assets of €24.8 billion as at 31 March 2013, up 4.2% from the 2012 year-end (31 December 2012: €23.8 billion). The nominal volume of customer lending (the aggregate of loans and advances to customers, guarantees and indemnities, irrevocable loan commitments, and derivatives) increased slightly by 1.4%, to €22.5 billion. In US dollar terms, it was down 1.4%, to US$28.8 billion.

Key financial indicators changed as follows:

Return on equity before taxes rose to 15.2% (Q1 2012: 7.9%). DVB lowered its cost/income ratio considerably to 45.1% (Q1 2012: 63.9%).

Calculated in accordance with Basel II, DVB’s tier 1 ratio amounted to
17.7% (31 December 2012: 20.3%), and the total capital ratio to 20.5%
(31 December 2012: 23.6%).