DVB Bank, focused on international transport finance, has reported a total income[ds_preview] of 106mill. € in the first half of 2016. That was 8,7% below the result in the corresponding period the year before. The net income before taxes was 14.1mill. € (previous year: 75.7mill. €).
According to the company the ongoing shipping crisis, the low interest rate policy of the European Central Bank (ECB) and the high cost of banking regulation have significantly impacted the earnings development of DVB. Thus, the provision for credit losses had be more than doubled from 39.7mill. € to 83.4mill. €. The increase was largely required for legacy exposures in the Shipping Finance portfolio, and for financings in the Offshore Finance portfolio, which is burdened by the slump in oil prices.
In a continuously challenging environment the Bank originated 63 new transactions in its core Transport Finance business, with an aggregate volume of 2.8 bn € during the first half of 2016 (previous year: 100 new transactions with a total volume of 3.6 bn €). The Bank was successful in the fee and advisory businesses: net fee and commission income rose by 8.0%, from 52.3mill. € to 56.5 mill. €
