DVB Bank reports H1 results

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By TESTCustomwebLP TESTCustomwebLP August 14, 2014 20:08

DVB Bank reports H1 results

DVB Bank SE reported its H1 2014 results as lower than the same period the previous year. Consolidated net income before taxes was down 37.7%, to EUR41.4 million.

At EUR105.0 million, net interest income decreased by 9.6% year-on-year (H1 2013: EUR116.2 million).

Income from the lending business was down 1.6%, to EUR381.1 million (H1 2013: EUR387.3 million). DVB originated 78 new Transport Finance transactions in the period, with an aggregate volume of EUR2.2 billion (H1 2013: 71 new transactions with a total volume of EUR1.8 billion). Interest income from finance leases totalled EUR8.2 million (H1 2013: EUR12.7 million), whilst current income from operating leases decreased 40.1%, to EUR41.1 million (H1 2013: EUR68.6 million). Given the reasons set out above, total interest income thus declined by 7.9%, from EUR471.9 million to EUR434.7 million.

Wolfgang F. Driese, CEO and Chairman of the Board of Managing Directors of DVB Bank SE, said: “The flooding of international capital markets with liquidity by central banks – which DVB considers an unhealthy development – significantly burdened the Bank’s results, in two ways: firstly, there was a marked increase in competition between banks and other providers of capital in transport finance. Secondly, the liquidity glut led clients to repay loans early, to a significant and unexpected extent. It was not possible to fully replace these repayments by additional new business, or only with a time lag. Furthermore, the repayments further increased the Bank’s already high liquidity reserves, thus additionally burdening net interest income.”

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By TESTCustomwebLP TESTCustomwebLP August 14, 2014 20:08