three-month results 2014 - interim management statement during the first half of 2014
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DVB starts into 2014 with stable results and higher new businessTRANSCRIPT
2014Interim Statements – Three-Month Results
DVB Group | Interim Management Statement during the first half of 2014
2
Net fee and commission income, which primarily includes fees and commissions from new Transport Finance business, and asset management and advisory fees, amounted to €23.1 million and was thus maintained close to the very good figure posted the year before (Q1 2013: €23.9 million).
Results from investments in companies accounted for using the equity method totalled €0.4 million (Q1 2013: €2.6 million), and net other operating income/expenses improved from €–4.6 million to €–0.1 million.
General administrative expenses rose 5.6%, to €43.6 million. The Bank reduced staff expenses by 2.3%, to €25.5 million, whilst non-staff expenses (including depreciation, amortisation and write-downs) rose by €2.9 million, to €18.1 million.
Accordingly, consolidated net income before IAS 39 and taxes amounted to €38.9 million (Q1 2013: €44.7 million).
For the first time, the 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 investment securities) only changed marginally, from €1.3 million to €1.2 million.
Consolidated net income before taxes decreased by 12.8%, to €40.1 million (Q1 2013: €46.0 million).
DVB starts into 2014 with stable results and higher new business
DVB generated relatively stable results during the first three months of 2014, despite the prevailing difficult environment in individual subsegments of international shipping. Total net income of €83.7 million (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 only slightly lower than the previous year's figure (Q1 2013: €87.3 million).
Net interest income was down 16.7%, to €56.9 million (Q1 2013: €68.3 million). Interest income declined by 11.4%, to €214.3 million (Q1 2013: €242.0 million). New business in Shipping Finance, Aviation Finance, Offshore Finance and Land Transport Finance comprised 40 transactions with an aggregate volume of €1.1 billion (Q1 2013: 29 transactions with an aggregate volume of €0.8 billion). Interest expenses decreased by 9.4%, from €173.7 million to €157.4 million.
Allowance for credit losses of €2.2 million was reversed – largely in Shipping Finance – during the first quarter of 2014 (Q1 2013: allowance recognised of €4.2 million). Accordingly, net interest income after allowance for credit losses declined by 7.8%, to €59.1 million (Q1 2013: €64.1 million).
Substantial events and deals
60
50
40
30
20
10
0
16.7
2010
52.8
2011
22.0
2012
46.0
2013
40.1
2014
Consolidated net income before taxes as at 31 March
€ mn
DVB Group | Interim Management Statement during the first half of 2014
3
Key financial indicators developed as follows:
Return on equity before taxes stood at 12.5% (Q1 2013: 15.2%). The cost/income ratio rose to 53.5% (Q1 2013: 45.1%).
DVB has calculated its capital ratios in accordance with the Basel III framework since the beginning of 2014. As at 31 March 2014, the tier 1 ratio was 17.8% and the total capital ratio 19.6%.
Frankfurt/Main, May 2014
THE BOARD OF MANAGING DIRECTORS
DVB reported virtually unchanged total assets of €23.2 billion as at 31 March 2014 (31 December 2013: €23.4 billion). The nominal volume of customer lending (the aggregate of loans and advances to customers, guarantees and indemnities, irrevocable loan commitments, and derivatives) decreased slightly by 1.9%, to €20.4 billion. In US dollar terms, it was down 1.7%, to US$28.1 billion.
The distribution of customer lending amongst the Bank’s business divisions is as follows:
Substantial events and deals
Development of the customer lending volume
€ bn US$ bn
31 Mar 2014
31 Dec 2013
Change
(%)
31 Mar 2014
31 Dec 2013
Change
(%)
Shipping Finance 8.9 9.2 –3.3 12.3 12.7 –3.1
Aviation Finance 6.3 6.4 –1.6 8.7 8.9 –2.2
Offshore Finance 2.0 2.0 0.0 2.7 2.8 –3.6
Land Transport Finance 1.7 1.6 6.3 2.4 2.2 9.1
Investment Management 0.5 0.5 0.0 0.6 0.6 0.0
ITF Suisse 0.8 0.8 0.0 1.1 1.1 0.0
Business no longer in line with DVB’s strategy 0.2 0.3 –33.3 0.3 0.3 0.0
Total 20.4 20.8 –1.9 28.1 28.6 –1.7
Shipping Finance 43.6% (–0.7 pp)
Aviation Finance 30.9% (+0.1 pp)
Offshore Finance 9.8% (+0.2 pp)
Land Transport Finance 8.3% (+0.6 pp)
ITF Suisse 3.9% (+0.1 pp)
Investment Management 2.5% (+0.1 pp)
Business no longer in line with the Bank’s strategy 1.0% (–0.4 pp)
Customer lending by business division
DVB Group | Interim Management Statement during the first half of 2014
4Condensed income statement (IFRS)
€ mn
1 Jan 2014 – 31 Mar 2014
1 Jan 2013 – 31 Mar 2013
%
Net interest income 56.9 68.3 –16.7
Allowance for credit losses 2.2 –4.2 –
Net interest income after allowance for credit losses 59.1 64.1 –7.8
Net fee and commission income 23.1 23.9 –3.3
Results from investments in companies accounted for using the equity method 0.4 2.6 –84.6
General administrative expenses –43.6 –41.3 5.6
Net other operating income/expenses –0.1 –4.6 –97.8
Consolidated net income before IAS 39 and taxes 38.9 44.7 –13.0
Net result from financial instruments in accordance with IAS 39 1.2 1.3 –7.7
Consolidated net income before taxes 40.1 46.0 –12.8
Income taxes –6.2 –6.6 –6.1
Consolidated net income 33.9 39.4 –14.0
thereof: consolidated net income attributable to non-controlling interests 0.0 0.1 –
thereof: consolidated net income attributable to shareholders of DVB Bank SE 33.9 39.3 –13.7
Earnings per share (€)
1 Jan 2014 – 31 Mar 2014
1 Jan 2013 – 31 Mar 2013
%
Basic earnings per share 0.74 0.85 –12.9
Diluted earnings per share 0.74 0.85 –12.9
Key ratios in accordance with IFRS (%)
1 Jan 2014 – 31 Mar 2014
1 Jan 2013 – 31 Mar 2013
pp
Cost/income ratio 53.5 45.1 8.4
Return on equity before taxes 12.5 15.2 –2.7
Return on equity after taxes 10.6 13.0 –2.4
DVB Group | Interim Management Statement during the first half of 2014
5Statement of financial position (IFRS)
Assets (€ mn) 31 Mar 2014 31 Dec 2013 %
Cash and balances with the central bank 2,009.0 2,040.5 –1.5
Loans and advances to banks 557.9 212.3 –
Loans and advances to customers 18,567.2 18,896.9 –1.7
Allowance for credit losses –187.3 –203.7 –8.1
Positive fair values of derivative hedging instruments 683.9 590.0 15.9
Trading assets 292.8 345.0 –15.1
Investment securities 401.6 496.5 –19.1
Investments in companies accounted for using the equity method 235.2 226.6 3.8
Intangible assets 101.3 101.4 –0.1
Property and equipment 422.9 459.2 –7.9
Income tax assets 50.0 49.3 1.4
Other assets 58.1 149.1 –61.0
Total 23,192.6 23,363.1 –0.7
Liabilities and equity (€ mn) 31 Mar 2014 31 Dec 2013 %
Deposits from other banks 3,126.2 3,783.6 –17.4
Liabilities to customers 6,483.9 6,113.6 6.1
Securitised liabilities 11,272.4 11,134.5 1.2
Negative fair values of derivative hedging instruments 232.9 286.7 –18.8
Trading liabilities 105.7 107.1 –1.3
Provisions 66.9 62.5 7.0
Income tax liabilities 34.3 32.0 7.2
Other liabilities 76.1 80.5 –5.5
Subordinated liabilities 363.7 363.7 0.0
Equity 1,430.5 1,398.9 2.3
Issued share capital 116.6 116.7 –0.1
Capital reserve 320.9 321.3 –0.1
Retained earnings 947.1 918.7 3.1
thereof: Fund for general banking risks 82.4 82.4 0.0
Revaluation reserve 7.8 7.7 1.3
Reserve from cash flow hedges 5.4 6.1 –11.5
Reserve from net investment hedges 1.2 2.4 –50.0
Currency translation reserve –2.6 –2.9 –10.3
Distributable profit 33.9 27.9 21.5
Non-controlling interests 0.2 1.0 –80.0
Total 23,192.6 23,363.1 –0.7
Customer lending volume (€ bn) 31 Mar 2014 31 Dec 2013 %
Nominal customer lending volume 20.4 20.8 –1.9
Capital ratios – Basel III (%) 31 Mar 2014 31 Dec 2013
Tier 1 ratio 17.8 n/a
Total capital ratio 19.6 n/a
Imprint
DVB Bank SEPlatz der Republik 660325 Frankfurt/Main, [email protected] www.dvbbank.com
Elisabeth Winter Head of Group Corporate CommunicationsPhone: +49 69 9750 [email protected]
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