DVB increased total income before allowance for credit losses by 5.1%, to €411.9m (previous year: €391.9m). Total income after allowance for credit losses amounted to €341.2m, which corresponds to a rise of 2.6%. Net interest income after allowance for credit losses declined by 20.0%, to €159.3m (2011: €199.1m) in spite of successful new business origination; the decline was attributable to higher risk costs. Allowance for credit losses amounted to €-70.7m (2011: €-59.2m). Net fee and commission income, which largely consists of commissions from lending business, asset management and advisory services, grew by 12.5%, from €116.2m to a record high of €130.7m.
Net other operating income/expenses increased from €17.3m to €42.7m. In June 2012, DVB sold a 60% stake in TES Holdings Ltd, the British aero engine specialist, to two renowned Japanese investors. The two new partners – Mitsubishi Corporation, and Development Bank of Japan, Inc. – acquired 35% and 25%, respectively. DVB remains the largest shareholder, with a share of 40%. General administrative expenses were down 2.9%, to EUR184.0 million, mainly due to the deconsolidation of TES. Staff expenses of €101.5m were down 6.9% year-on-year (2011: €109.0m), whilst at €77.9m, non-staff expenses were up 3.0% (2011: €75.6m). Consolidated net income before IAS 39 and taxes rose by 9.7%, from €143.3m to €157.2m.
Burdened by still volatile net result from financial instruments in accordance with IAS 39 (down from €4.4m to €–15.8m), consolidated net income before taxes decreased by 4.3% to €141.4m (2011: €147.7m). Consolidated net income after taxes totalled €124.9m, an increase of 13.1% (2011: €110.4m).
