DVB Bank highlights strong new business in aircraft financings in the first quarter, after posting a consolidated pre-tax profit of €25.9 million ($29.5 million) across its wider business for the three months ending 31 March 2016.
Amid challenging conditions for the shipping and offshore sectors, the international transport finance specialist terms its profit performance as "reasonable". While the figure is down on the €84.3 million pre-tax profit it generated at the same stage last year, that was boosted by the one-off gains from the partial sale of its stake in Wizz Air.
"In a challenging environment – in geopolitical, macroeconomic and industry-specific terms – the bank's business model once again proved resilient. DVB's clear focus on financing transportation assets has paid off, especially during these testing times," says DVB Bank chief executive Ralf Bedranowsky.
The group originated 27 new transactions in its core Transport Finance business, with an aggregate volume of €1.2 billion. That compares with 51 new transactions with a total volume of €1.7 billion in the equivalent period last year.
"Whilst the bank adopted a cautious lending policy in the persistently difficult segments of the shipping industry, it very successfully originated new business in Aviation Finance with aircraft financings, and in Land Transport Finance, where it finances rail rolling stock and rail-related vehicles," adds Bedranowsky.
"We continue to assess the financial year 2016 with cautious optimism, and are endeavouring to achieve consolidated net income that should approach the previous year's level," he adds.
Source: Cirium Dashboard
