EU relaxes CORSIA baseline to account for COVID 19
11th June 2020
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.”