DVB Bank posts slightly lower consolidated net income in 2013

Banking, Finance, Shipfinance — By on March 25, 2014 at 10:21 AM
Wolfang F. Driese

Wolfang F. Driese

Frankfurt/Main, 25 March 2014 – DVB Bank (ISIN DE0008045501), which is focused on international transport finance, posted consolidated net income after taxes of  €110.2 million, down 11.8% year-on-year (2012: €124.9 million).

This decline was mainly due to a special effect which impacted on the previous year’s figure: net other operating income/ expenses for 2012 included a significant non-recurring effect
from the sale of a stake in aero engine specialist TES Holdings Ltd, Bridgend, Wales. This net item declined from €42.7 million to €–4.1 million.

Moreover, due the prevailing crisis in some maritime shipping segments, allowance for credit losses reached a high of €87.1 million (2012: €70.7 million). DVB incurred €23.7
million in additional expenses for vessels held by the Bank; these expenses are included in net interest income.

Wolfgang F. Driese, CEO and Chairman of the Board of Managing Directors of
DVB Bank SE, assessed DVB’s consolidated results:

“Against the background of the special effect described and higher risk costs, we consider the results achieved in 2013 as satisfactory. We are cautiously optimistic for the 2014 business year. In fact, we are possible somewhat more optimistic than last year – indicating a slightly better outlook for returns, both for net
interest income and net fee and commission income. We have maintained our projections for risk costs at the level of 2012 and 2013, reflecting our expectation that the shipping segments under stress – container carriers, bulk carriers and crude oil tankers – will not recover from the trough reached before 2015, with a slow recovery afterwards.”

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DVB originated 173 new Transport Finance transactions, with an aggregate volume of
€4.7 billion (2012: 158 new financings with a total volume of €4.6 billion). This attractive new
business also contributed to a 5.1% increase in net interest income, to €241.8 million (2012:
€230.0 million). Net interest income after allowance for credit losses declined slightly, by
2.9%, to €154.7 million (2012: €159.3 million); the decline was attributable to the higher risk
costs referred to above.

Net fee and commission income, which primarily includes fees and commissions from the
lending business, as well as asset management and advisory fees, amounted to
€128.7 million and thus only slightly missed the previous year’s record of €130.7 million.

General administrative expenses decreased by 2.8%, to €178.8 million. Staff expenses of
E 105.7 million were up 4.1% year-on-year (2012: €101.5 million), whilst at €68.3 million, non-
staff expenses were down 12.3% (2012: E77.9 million)

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Net result from financial instruments in accordance with IAS 39 – which is usually
volatile – swung from €–15.8 million to €18.2 million. Consolidated net income before
taxes decreased by 12.4%, to €123.8 million (2012: €141.4 million).

The key strategic indicators that DVB Group uses to manage its business reflected the
stable business performance: the return on equity before taxes was 10.3% (2012: 12.9%),
and the cost/income ratio was reduced further, to 45.9% (2012: 46.5%).

At €24.6 billion, the volume of business in 2013 was 2.0% below the previous year (2012:
€25.1 billion), reflecting the lower US dollar exchange rate at the end of the year. Besides
total assets of €23.4 billion (2010: €23.8 billion), the figure also includes irrevocable loan
commitments of €1.2 billion (2012: €1.3 billion). DVB’s nominal customer lending (the
aggregate of loans and advances to customers, guarantees and indemnities, irrevocable loan
commitments, and derivatives) decreased by 6.3%, to €20.8 billion (2012: €22.2 billion).

DVB’s capital ratios, determined in accordance with Basel II (following the confirmation of
profits in the financial statements) developed as follows: the tier 1 ratio was 19.6%
(2012: 20.3%) and the total capital ratio 22.2% (2012: 23.6%).

The Board of Managing Directors and the Supervisory Board will propose to DVB Bank SE’s
Annual General Meeting, which will be held on 12 June 2014, to pay an unchanged dividend
of €0.60 per notional no-par value share. In this way, DVB will provide its shareholders with
an adequate dividend yield of 2.44%, whilst further strengthening the Bank’s liable capital.

You can find a video commentary on the results for 2013 by Wolfgang F. Driese, CEO and
Chairman of the Board of Managing Directors of DVB Bank SE, on our website:
www.dvbbank.com. As an additional service, we will upload a gallery with photographs from
the press conference, which will be available for download on www.eventbildservice.de at
1:00 p.m.

About DVB Bank SE:
DVB Bank SE, headquartered in Frankfurt/Main, Germany, is the leading specialist in the international
transport finance business. The Bank offers integrated financing solutions and advisory services in
respect of Shipping Finance, Aviation Finance, Offshore Finance and Land Transport Finance. DVB is
present at all key international financial centres and transport hubs: at its Frankfurt/Main head office,
as well as various European locations (Amsterdam, Athens, Bergen, Hamburg, London, Oslo and
Zurich), plus offices in the Americas (New York City and Curaçao) and in Asia (Singapore and Tokyo).
DVB Bank SE is listed at the Frankf

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