DVB Bank Results Satisfactory, Says CEO

DVB, a Germany-based advisory bank and finance house that specializes in the global transport market, posted consolidated net income after taxes of €110.2 million, down 11.8% year – on – year (2012: €124.9 million).

This decline was mainly due to a special effect which impacted on the previous year’s figure: net other operating income/expenses for 2012 included a significant non-recurring effect from the sale of a stake in aero engine specialist TES Holdings Ltd, Bridgend, Wales. This net item declined from €42.7 million to €4.1 million.

Moreover, due the prevailing crisis in some maritime shipping segments, allowance for credit losses reached a high of €87.1 million (2012: €70.7 million).

DVB incurred €23.7 million in additional expenses for vessels held by the Bank; these expenses are included in net interest income.

Wolfgang F. Driese, CEO and Chairman of the Board of Managing Directors of DVB Bank SE, assessed DVB’s consolidated results: “Against the background of the special effect described and higher risk costs, we consider the results achieved in 2013 as satisfactory. We are cautiously optimistic for the 2014 business year. In fact, we are possibly somewhat more optimistic than last year – indicating a slightly better outlook for returns, both for net interest income and net fee and commission income. We have maintained our projections for risk costs at the level of 2012 and 2013, reflecting our expectation that the shipping segments under stress – container carriers, bulk carriers and crude oil tankers – will not recover from the trough reached before 2015, with a slow recovery afterwards. ”

Video: CEO Wolfgang F. Driese presents DVB’s 2013 financial results

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dvbbank, March 25, 2014