Interim Statements Three-Month Results

Transcription

1 Interim Statements Three-Month Results 2015

2 Substantial events and deals 2 DVB Bank posts strong results for the first quarter of 2015 DVB more than doubled consolidated net income, from 33.9 million to 74.9 million. This excellent result was largely due to three factors: besides higher net interest income driven by attractive new business volumes and a similarly positive development of net fee and commission income, the Investment Management division generated a significant non-recurring income from investment securities due to the partial sale of a shareholding in Wizz Air Holdings Plc, an Eastern Europe-based airline. The individual items developed as follows: At million, total income for the first three months of 2015 (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, net other operating income/expenses, and the net result from financial instruments in accordance with IAS 39), was up 68.0% year-onyear (3m 2014: 83.7 million). Net interest income rose by 13.9%, from 56.9 million to 64.8 million. Interest income was up 21.1%, to million (3m 2014: million); interest expenses amounted to million (3m 2014: million). DVB s new business in Shipping Finance, Aviation Finance, Offshore Finance and Land Transport Finance comprised 51 transactions with an aggregate volume of 1.7 billion (3m 2014: 40 transactions with an aggregate volume of 1.1 billion). Net allowance for credit losses amounted to 13.4 million (3m 2014: 2.2 million). Specifically, new allowance recognised for credit losses totalled 26.1 million, of which 19.6 million was accounted for by Shipping Finance, due to the persistently difficult environment in some segments of the shipping market. Conversely, allowance for credit losses of 15.5 million was reversed (Shipping Finance: 10.8 million). Net interest income after allowance for credit losses of 51.4 million was lower than the previous year s figure (3m 2014: 59.1 million). Total allowance for credit losses (comprising specific allowance for credit losses, portfolio-based allowances for credit losses, and provisions) rose to million, up 7.3% from year-end 2014 ( million). Net fee and commission income, which primarily includes fees and commissions from new Transport Finance business, and asset management and advisory fees, amounted to 26.2 million a further 13.4% improvement over the very good figure posted the year before (3m 2014: 23.1 million). Fee and commission income was up 17.4%, to 28.3 million (3m 2014: 24.1 million); fee and commission expenses rose to 2.1 million (3m 2014: 1.0 million). Results from investments in companies accounting for using the equity method increased from 0.4 million to 3.1 million. Net other operating income/expenses amounted to 0.9 million (3m 2014: 0.1 million). General administrative expenses were up 7.7%, to 46.0 million (3m 2014: 42.7 million). Staff expenses rose by 1.2%, to 25.8 million (3m 2014: 25.5 million), whilst non-staff expenses (including depreciation, amortisation, impairment and write-ups) amounted to 20.2 million (3m 2014: 17.2 million). Accordingly, consolidated net income before IAS 39, bank levy and taxes rose to 33.8 million (3m 2014: 39.8 million). Net result from financial instruments in accordance with IAS 39 (comprising the trading result, the hedge result, the result from the application of the fair value option, the result from derivatives entered into without intention to trade, and the result from Consolidated net income, as at 31 March mn

3 Substantial events and deals 3 investment securities) which is generally volatile swung to 60.8 million (3m 2014: 1.2 million). The net figure included a significant non-recurring income from the sale of financial assets, generated within DVB s ordinary activities, including the partial sale of a shareholding in Wizz Air Holdings Plc. Accordingly, the result from investment securities rose by 44.1 million, to 46.7 million (3m 2014: 2.6 million). Consolidated net income before bank levy and taxes also showed a marked improvement, to 94.6 million (3m 2014: 41.0 million). Consolidated net income before taxes amounted to 84.3 million (3m 2014: 40.1 million). The expected bank levy for the fiscal year 2015, in the amount of 10.3 million, already needed to be deducted from this figure at the beginning of this year. During 2014, the Bank paid an aggregate bank levy of 3.6 million. Consolidated net income after taxes rose to 74.9 million (3m 2014: 33.9 million). DVB s total assets increased to 27.1 billion as at 31 March 2015, up 10.6% from the 2014 year-end (31 December 2014: 24.5 billion) mainly due to currency effects. DVB s nominal volume of customer lending (the aggregate of loans and advances to customers, guarantees and indemnities, irrevocable loan commitments, and derivatives) also rose significantly, by 12.0%, to 26.1 billion. In US dollar terms, it was down slightly, by 0.4%, to US$28.2 billion. The following chart illustrates the distribution of customer lending (in euro terms) amongst the Bank s business divisions. Key financial indicators developed as follows: Driven by a strong consolidated net income, the return on equity (before taxes) stood at 25.2% up by 12.7 percentage points (3m 2014: 12.5%). Whereas, the cost/income ratio declined by 16.9 percentage points, to 36.6% (3m 2014: 53.5%). The riskadjusted Economic Value Added which now also includes operating net income from investment securities amounted to 45.4 million (3m 2014: 15.8 million). Since the year 2014, DVB has disclosed capital ratios determined in accordance with Basel III framework (Advanced Approach) and after appropriation of profits. On this basis, the common equity tier 1 ratio as at 31 March 2015 was 15.9% (31 December 2014: 18.7%), whilst the total capital ratio amounted to 22.5% (31 December 2014: 21.6%). Frankfurt/Main, May 2015 THE BOARD OF MANAGING DIRECTORS Development of the customer lending volume bn US$ bn 31 Mar Dec 2014 % 31 Mar Dec 2014 % Shipping Finance Aviation Finance Offshore Finance Land Transport Finance ITF Suisse Investment Management Business no longer in line with DVB s strategy Total Distribution of customer lending by business division, as at 31 March 2015 Shipping Finance 43.3% (0.0 pp) Aviation Finance 32.2% (+1.7 pp) Offshore Finance 9.9% (0.0 pp) Land Transport Finance 6.9% ( 1.7 pp) ITF Suisse 4.2% ( 0.1 pp) Investment Management 2.7% (+0.1 pp) Business no longer in line with the Bank s strategy 0.8% (0.0 pp)

4 Condensed income statement (IFRS) 4 mn 1 Jan Mar Jan Mar 2014 % Net interest income Allowance for credit losses Net interest income after allowance for credit losses Net fee and commission income Results from investments in companies accounted for using the equity method General administrative expenses Net other operating income/expenses Consolidated net income before IAS 39, bank levy and taxes Net result from financial instruments in accordance with IAS Consolidated net income before bank levy and taxes Bank levy Consolidated net income before taxes Income taxes Consolidated net income thereof: consolidated net income attributable to non-controlling interests thereof: consolidated net income attributable to shareholders of DVB Bank SE Earnings per share ( ) 1 Jan Mar Jan Mar 2014 % Basic earnings per share Diluted earnings per share Key financial indicators (%) 1 Jan Mar Jan Mar 2014 pp Cost/income ratio Return on equity before taxes Return on equity after taxes Economic Value Added ( mn)

5 Statement of financial position (IFRS) 5 Assets ( mn) 31 Mar Dec 2014 % Cash and balances with the central bank Loans and advances to banks 1, , Loans and advances to customers 23, , Allowance for credit losses Positive fair values of derivative hedging instruments Trading assets Investment securities Investments in companies accounted for using the equity method Intangible assets Property and equipment 1, , Income tax assets Other assets Total 27, , Liabilities and equity ( mn) 31 Mar Dec 2014 % Deposits from other banks 3, , Deposits from customers 7, , Securitised liabilities 12, , Negative fair values of derivative hedging instruments Trading liabilities 1, Provisions Income tax liabilities Other liabilities Subordinated liabilities Equity 1, , Issued share capital Capital reserve Retained earnings 1, thereof: fund for general banking risks Revaluation reserve Reserve from cash flow hedges Reserve from net investment hedges Currency translation reserve Distributable profit Non-controlling interests Total 27, , Customer lending volume ( bn) 31 Mar Dec 2014 % Nominal customer lending volume Capital ratios Basel III (%) 31 Mar Dec 2014 pp Common equity tier 1 ratio Additional tier 1 ratio Total capital ratio

6 Imprint DVB Bank SE Platz der Republik Frankfurt/Main, Germany info@dvbbank.com Elisabeth Winter Head of Group Corporate Communications Managing Director Phone: elisabeth.winter@dvbbank.com Lisa Boose-Kirwel Group Corporate Communications Manager Investor Relations Phone: lisa.boose-kirwel@dvbbank.com Design and realisation Studio Oberländer GmbH, Frankfurt/Main, Germany Cover page photos Shipping Finance Odfjell SE, Bergen, Norway Aviation Finance Bert van Leeuwen, DVB Bank SE, Amsterdam, The Netherlands Offshore Finance Harald M. Valderhaug, Skjongholmen, Norway Land Transport Finance Wouter Radstake, DVB Bank SE, Frankfurt/Main, Germany The Interim Management Statement during the first half of 2015 is published in English and German. It is available as PDF file, on our webpage: > Investors > Publications > Financial reports After scanning this QR code with your smartphone, you will have direct access to our website.