DVB Bank reported a 7.8% increase in net income to €125.6 million ($ million) for the first nine months of the year due to a solid performance in its transport finance business.
Total income was up 6.2%, to €262.7 million.
"DVB has been able to report very good operating results for the first nine months of 2012. A key reason in this respect is the fact that the vast majority of exposures in our transport finance business are performing in line with contractual agreements.The high level of diversification in our portfolio is paying off," says Wolfgang Driese, chief executive officer and chairman of the board of managing directors.
New transport finance business totalled 93 transactions in the year to 30 September, with an aggregate volume of €2.8 billion. This compares with 109 transactions with a volume of €3.3 billion in last year's corresponding period.
When originating new business, DVB says it continued to target "only those exposures which offer a sustainable risk/return ratio". Accordingly, the average interest margin on new transport finance business rose to 357 basis points (bps) from 297 bps.
Net allowance for credit losses increased to €53.3 million compared with €19.2 million in the first nine months of 2011. New allowance recognised for credit losses, as at 30 September, totalled €110 million; a net €57.1 million was released, and charge-offs amounted to €29.9 million.
Net fee and commission income reached €90.8 million and exceeded the previous year's high level by 19.3%.
Net other operating income/expenses rose from €11.8 million to €42.3 million. Net other operating income of €53.1 million also includes the proceeds from the sale of shareholdings. On 14 June, the bank sold a 60% stake in TES Holdings, the British aero engine group headquartered in Bridgend, Wales, to two Japanese investors. The two new partners - Mitsubishi Corporation, and Development Bank of Japan. - acquired 35% and 25%, respectively. DVB remains the largest shareholder, with a share of 40%.
DVB's total assets rose by 10% to €24.2 billion. DVB's nominal volume of customer lending was unchanged year-on-year in euro terms, at €21.7 billion, and also in US dollar terms, at $28.1 billion.