DVB Group publishes nine-months results for 2015

DVB Bank generated consolidated net income before taxes of €59.8m (previous year: €72.6m) during the first nine months of 2015, providing financing solutions and advisory services to its clients in the international transport sector. Net interest income decreased by 6.7%, from €62.5m to €151.6m. Thanks to the high volume of new Transport Finance business, interest income rose by 17.6%, from €654.4m to €769.6m. Interest expenses rose by 25.6%, from €491.9m to €618.0m. Allowance for credit losses amounted to €62.7m (previous year: €8.5m). Specifically, new allowance recognised for credit losses totalled €106.3m, of which €75.7m was accounted for by Shipping Finance, due to the persistently difficult environment in individual subsegments of international shipping. Conversely, allowance for credit losses of €48.5m was reversed (of which €31.0m in Shipping Finance). Total allowance for credit losses (comprising specific allowance for credit losses, portfolio-based allowances for credit losses, and provisions) rose to €244.8m, up 11.8% from year-end 2014 (€219.0m). Net interest income after allowance for credit losses of €88.9m was lower than the previous year’s figure of €134.0m. Consolidated net income before taxes declined by 17.6% year-on-year, from €72.6m to €59.8m, and consolidated net income after taxes of €51.3m fell short of the previous year’s figure of €58.1m.