DVB Bank posts strong results for first quarter of 2015

DVB Bank, the international transport finance specialist, more than doubled consolidated net income for the first quarter of 2015, from €33.9m to €74.9m. At €140.6m, total income (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 up 68.0% year-on-year (3m 2014: €83.7m). Net interest income rose by 13.9%, from €56.9m to €64.8m. DVB’s new business in Shipping Finance, Aviation Finance, Offshore Finance and Land Transport Finance comprised 51 transactions with an aggregate volume of €1.7bn (3m 2014: 40 transactions with an aggregate volume of €1.1bn). Net allowance for credit losses amounted to €13.4m (3m 2014: €-2.2m). Specifically, new allowance recognised for credit losses totalled €26.1m, of which €19.6m was accounted for by Shipping Finance, due to the persistently difficult environment in some segments of the shipping market. Conversely, allowance for credit losses of €15.5m was reversed (Shipping Finance: €10.8m). Net interest income after allowance for credit losses of €51.4m was lower than the previous year’s figure (3m 2014: €59.1m). Consolidated net income before taxes amounted to €84.3m (3m 2014: €40.1m). The expected bank levy for the fiscal year 2015, in the amount of €10.3m, already needed to be deducted from this figure at the beginning of this year. During 2014, the Bank paid an aggregate bank levy of €3.6m. Consolidated net income after taxes rose to €74.9m (3m 2014: €33.9m).