DVB Group increased its consolidated net income before taxes (and excluding net result from financial instruments in accordance with IAS 39) by 36.6%, to €91.1 million.
Wolfgang F. Driese, CEO and Chairman of the Board of Managing Directors, said: “We are very satisfied with DVB's achievements. The six-month financial statements show that we are straight on course for reaching our target of generating results that are comparable to the previous year."
But he added that: “The general risk situation remains a challenge, as existing excess capacity and the high number of new deliveries coincide with falling demand in some transport sectors. The absence of any convincing and sustainable political measures to tackle the sovereign debt crisis is a major burden to the economic environment.
During the period DVB originated 63 new transactions, with an aggregate volume of €2.2 billion (H1 2011: 75 new transactions with a total volume of €2.4 billion). The average interest margin on new business originated by the three Transport Finance divisions rose to 356 basis points (H1 2011: 327 basis points). Interest expenses rose by 22.1%, mainly on account of higher funding costs. At €112.5 million, net interest income for the first half of 2012 increased slightly year-on-year (H1 2011: €112.2 million). Allowance for credit losses amounted to €27.3 million in the first half of 2012 (H1 2011: €18.4 million). Net interest income after allowance for credit losses declined by 9.2%, from €93.8 million to €85.2 million.
Net fee and commission income, which primarily includes fees and commissions from new Transport Finance business, and asset management as well as advisory fees, grew to €54.6 million, up 2.1% year-on-year (H1 2011: €53.5 million).
Net other operating income/expenses rose from €6.2 million to €43.9 million. Specifically, this figure also includes the proceeds from the sale of shareholdings. On 14 June 2012, the bank sold a 60% stake in TES Holdings Ltd. The two new partners - Mitsubishi Corporation, and Development Bank of Japan, Inc. - acquired 35% and 25%, respectively. DVB remains the largest shareholder, with 40%.
DVB income up thanks to a strong transport division
