DVB Bank says transport finance outlook favorable

DVB Bank says transport finance outlook favorable Germany’s DVB Bank AG, specialists in global transport finance, today reported net profit for the six months ended June 30 of 71.3 million euros ($114 million), an increase of 6.6 percent against the same period in 2007.
   DVB’s total assets inched up 0.4 percent to 13.2 billion euros ($21 billion) while nominal customer lending rose by 2.3 percent to 14.71 billion euros. The Frankfurt-based bank said the continued appreciation of the euro versus the U.S. dollar absorbed some of the underlying growth. DVB’s accounting currency is the euro, whereas 79 percent of its aggregate customer lending is denominated in U.S. dollars. DVB’s customer lending in U.S. dollar terms was up 9.7 percent at $23.2 billion. As it has done in previous years, DVB said it hedged projected U.S. dollar net income from interest and commissions to minimize the impact of exchange rate fluctuations.
   DVB’s return on equity before tax (measured in IFRS) was 25.3 percent for the first half of this year, which compares to 26 percent in the first six months of 2007. The cost/income ratio according to IFRS increased by 1.8 percentage points to 49.5 percent.
   “DVB capitalized on its unique, clearly-defined business model in a challenging financial markets environment, to achieve another strong result,” said Wolfgang F. Driese, DVB’s chief executive officer and chairman of the board of managing directors.
   “The outlook for transport finance business remains favorable. Notwithstanding the economic downturn in a number of regions throughout the world, entailing a decline in demand for transportation, persistently high prices for crude oil exert pressure on transport providers all over the world to significantly improve the fuel efficiency of their fleets — this is only achievable through new vehicles.
   “The crisis affecting the financial markets has led to increased refinancing costs: at present, these are easier to pass on, as some competitors have discontinued or reduced their transport finance activities, to focus elsewhere. DVB remains exclusively focused on transport finance.”