DVB Bank has recorded an income boost and
increased lending during the first half of 2011.
The Frankfurt-based bank which specialises in
transport finance posted a 26.9% rise in consolidated net income
before taxes to €74.9m compared with the first half of 2010.
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The group’s transport finance division, which
consists of shipping, aviation and land transport divisions, posted
consolidated net income before taxes of €118.5m before deduction of
costs.
The nominal volume of customer lending,
including through subsidiary ITF Suisse, investment management
division and non-core business, decreased by 4.2%, to €18.4bn.
However, as 85.5% of DVB’s customer lending is
denominated in US dollars, a year-on-year comparison in US dollar
terms (up 3.9% to $26.6bn) reflects business developments more
accurately according to the bank’s result statement.
In US dollar terms, all lending divisions
posted increases in their respective business areas.
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By GlobalDataAn increase of 3.6% in shipping lending saw
$14.2bn lent over the period 1 January to 30 Jun 2011. Aviation was
up 6.7% to $8bn and land transport up 5% to $2.1bn.
Wolfgang F. Driese, chief executive and
chairman of the board of managing directors, said: “New business
has developed very favourably indeed, in terms of volumes, margins,
and particularly regarding commission income.
“We anticipate a similar trend for the second
half of the year, even though we are faced with manifold political
and economic uncertainties around the world.
Driese added shipping finance, which makes up
53.3% of the company’s lending, was the business’ most difficult
industry despite an 8.75% increase in income from the first half of
last year.
In an address following publication of the
company’s results he said the shipping market was the worst hit
part of DVB’s business and added last year’s economic recovery was
not strong enough to rebuild liquidity buffers to pre-crisis
levels.
He said: “There will be foreclosures and
renegotiations of charters so we must be very cautious.”
In a statement he added: “As we expected,
charter rates have come under pressure due to excess capacity
pushing into the markets – particularly for tankers, bulk
freighters and container carriers.
Driese said, while he is confident DVB will deliver another good
year, the coming months will require the bank’s full attention.
grant.collinson@vrlfinancialnews.com
