Half-Yearly
Financial Report
as at 30 June
2014
Contents
03
Key figures at a glance
Interim management report
04 – 09
Further information 30
DVB worldwide
32
Financial calendar
30 – 32
32Imprint
05
Report on assets, liabilities, financial position, and profit or loss
08
Report on forecasts and other statements on expected developments
09Report on opportunities and risks
09Report on major related party transactions
Interim financial statements
10 – 28
11Condensed income statement
11Earnings per share
11Condensed statement of comprehensive income
12Statement of financial position
13Condensed statement of changes in equity
13Condensed cash flow statement
14Segment report
15Notes
Review report
29
Symbols
Legal notice
Further information
DVB Bank SE | Half-Yearly Financial Report 2014
2
Key figures at a glance
€ mn
1 Jan 2014–
30 Jun 2014
1 Jan 2013–
30 Jun 2013
%
Earnings data
Net interest income
105.0
116.2
–9.6
Allowance for credit losses
–27.9
–28.4
–1.8
Net interest income after allowance for credit losses
77.1
87.8
–12.2
Net fee and commission income
51.0
55.7
–8.4
Results from investments in companies accounted for using the equity method
0.3
–0.5
–
Net other operating income/expenses
2.3
6.5
–64.6
–12.6
Net income
130.7
149.5
General administrative expenses
–91.7
–86.2
6.4
39.0
63.3
–38.4
2.4
3.1
–22.6
41.4
66.4
–37.7
Consolidated net income before IAS 39 and taxes
Net result from financial instruments in accordance with IAS 39
Consolidated net income before taxes
Key financial indicators (%)
Return on equity before taxes
Cost/income ratio
€ mn
6,5
11.0
–4.5 pp
57.0
47.6
9.4 pp
30 Jun 2014
31 Dec 2013
%
Key items from the statement of financial position
Business volume
24,454.2
24,576.3
–0.5
Customer lending volume
20,341.4
20,757.6
–2.0
Total assets
23,249.4
23,363.1
–0.5
Loans and advances to customers
18,659.3
18,896.9
–1.3
Deposits from customers
Securitised liabilities
Subordinated liabilities
Equity
6,558.0
6,113.6
7.3
11,167.0
11,134.5
0.3
359.1
363.7
–1.3
1,400.7
1,398.9
0.1
1,144.0
–
–
0.0
–
–
–
–
Total capital in accordance with the Capital Requirement Regulation
Common equity tier 1
Additional tier 1
Tier 2 capital
Total
97.0
1,241.0
Capital ratios – Basel III (%)
Tier 1 ratio
19.4
–
–
Total capital ratio
21.1
–
–
1 Jan 2014–
30 Jun 2014
1 Jan 2013–
30 Jun 2013
%
Staff by business division
Transport Finance/Investment Management
308
307
0.3
Service areas
216
200
8.0
LogPay Financial Services
Total active staff
Ratings
51
49
4.1
575
556
3.4
2014
2013
2012
Standard & Poor‘s
Long-term counterparty credit rating
A+
A+
A+
Short-term credit rating
A-1
A-1
A-1
stable
stable
stable
Outlook
Fitch Ratings1)
Long-term issuer default rating
A+
A+
A+
Short-term issuer default rating
F1+
F1+
F1+
1) Within the scope of the German Co-operative Financial Services Network’s rating
DVB Bank SE | Half-Yearly Financial Report 2014
3
IN T ERIM M A N AGEMEN T REPOR T
IN T ERIM FIN A NCIA L STAT EMEN TS
05
Report on assets, liabilities, financial position, and profit or loss
08
Report on forecasts and other statements on expected developments
09
Report on opportunities and risks
09
Report on major related party transactions
RE V IE W REP OR T
F UR T HER INFORM ATION
Interim management report
Development of income (as at 30 June)
€ mn
175
150
125
109.5
112.2
112.5
116.2
105.0
100
74.9
75
70.8
66.4
59.0
50
53.5
54.6
41.3
55.7
51.0
43.9
41.4
25
0
6.2
6.5
2.3
–1.3
–25
2010
Net interest income
Net fee and commission income
2011
Net other operating income/expenses
2012
2013
Consolidated income before taxes
2014
IN T ERIM M A N AGEMEN T REPOR T
IN T ERIM FIN A NCIA L STAT EMEN TS
RE V IE W REP OR T
F UR T HER INFORM ATION
Report on assets, liabilities, financial position, and profit or loss
 Consolidated net income before taxes, as at 30 June
€ mn
90
The present interim management report and condensed
consolidated financial statements of DVB Group as at
30 June 2014 were subject to a review pursuant to section
37w (5) of the German Securities Trading Act (WpHG). The
half-yearly financial report comprises the condensed interim
financial statements and the interim management report of
DVB Group.
75
74.9
70.8
66.4
60
59.0
45
41.4
30
15
During the first half of 2014, DVB’s performance in providing
financing solutions and advisory services to its clients in the
international transport sector was lower than in the same period
of the previous year. Consolidated net income before taxes was
down 37.7%, to €41.4 million (H1 2013: €66.4 million). 
The flooding of international capital markets with liquidity by
central banks – which DVB considers an unhealthy development –
significantly burdened the Bank’s results, in two ways: firstly,
there was a marked increase in competition between banks and
other providers of capital in transport finance. Secondly, the
liquidity glut led clients to repay loans early, to a significant and
unexpected extent – for DVB as well as others in the sector. It
was not possible to fully replace these repayments with additional
new business, and if so, only with a time lag. Furthermore, the
repayments further increased the Bank’s already high liquidity
reserves, thus additionally burdening net interest income.
The risk situation appears to be stabilising further. As a result,
net allowance for credit losses as at 30 June 2014 decreased
slightly. Nonetheless, DVB envisages allowance for credit losses
for the full year 2014 to be in line with the level of the two
previous years, as planned.
0
2010
2011
2012
2013
2014
The individual items of the half-yearly financial statements
developed as follows:
At €130.7 million, total income for the first six months of 2014
(comprising net interest income after allowance for credit losses,
net fee and commission income, results from investments
accounted for using the equity method, and net other operating
income/expenses), was down by 12.6% year-on-year (H1 2013:
€149.5 million).
At €105.0 million, net interest income decreased by 9.6% yearon-year (H1 2013: €116.2 million).
Income from the lending business was down 1.6%, to
€381.1 million (H1 2013: €387.3 million). DVB originated 78 new
Transport Finance transactions in the period, with an aggregate
volume of €2.2 billion (H1 2013: 71 new transactions with a
total volume of €1.8 billion). Interest income from finance leases
totalled €8.2 million (H1 2013: €12.7 million), whilst current income
from operating leases decreased by 40.1%, to €41.1 million
(H1 2013: €68.6 million). Given the reasons set out above, total
interest income thus declined by 7.9%, from €471.9 million to
€434.7 million.
Interest expenses also fell, by 7.3%, to €329.7 million (H1 2013:
€355.7 million), given the massive additional liquidity supply on
the capital markets and the resulting lower funding costs. However, this did not offset the decline in interest income.
DVB Bank SE | Half-Yearly Financial Report 2014
5
IN T ERIM M A N AGEMEN T REPOR T
IN T ERIM FIN A NCIA L STAT EMEN TS
RE V IE W REP OR T
F UR T HER INFORM ATION
Report on assets, liabilities, financial position, and profit or loss
Net allowance for credit losses declined slightly, by €0.5 million
to €–27.9 million in the first half of 2014 (H1 2013: €–28.4 million).
Specifically, new allowances recognised for credit losses
amounted to €49.1 million (of which €32.8 million was accounted
for by Shipping Finance), whilst €25.2 million was reversed
(Shipping Finance: €16.7 million). 
Total allowance for credit losses (comprising specific allowance
for credit losses, portfolio-based allowances for credit losses,
and provisions) rose to €207.5 million, up 1.8% from year-end
2013 (€203.8 million).
General administrative expenses rose by 6.4%, to €91.7 million.
Due to the increasing regulatory requirements, which DVB has
to comply with to the same extent as much larger financial institutions, we hired numerous new staff members to reinforce our
service teams. Hence, together with its LogPay Financial Services
subsidiary, DVB employed a total of 575 staff (in active employment) as at 30 June 2014, an increase of 19 compared to the
end of the first half of 2013 (556 employees). Accordingly, staff
expenses increased by 2.2%, to €54.8 million. Non-staff expenses
(including amortisation, depreciation and impairment) also rose,
by 13.2%, to €36.9 million.
Accordingly, net interest income after allowance for credit losses
declined by 12.2%, from €87.8 million to €77.1 million.
Accordingly, consolidated net income before IAS 39 and taxes
amounted to €39.0 million (H1 2013: €63.3 million).
Net fee and commission income, which primarily includes fees
and commissions from new Transport Finance business, from
Investment Management as well as asset management and
advisory fees, was down 8.4% year-on-year, to €51.0 million
(H1 2013: €55.7 million).
Compared to the same period of the previous year, the net result
from financial instruments in accordance with IAS 39 (comprising
the trading result, the hedge result, the result from the appli­
cation of the fair value option, the result from derivatives entered
into without intention to trade, and the result from investment
securities) was almost stable, at €2.4 million (H1 2013:
€3.1 million).
Net other operating income/expenses declined from €6.5 million
to €2.3 million. The previous year’s item included a non-recurring
effect of €3.8 million in income from the deconsolidation of
equity investments.
Consolidated net income after taxes reduced by 45.3%, to
€31.7 million (H1 2013: €57.9 million).
 Allowance for credit losses by business division, as at 30 June 2014 (€ mn)
Additions
Reversals
Direct
write-offs
Recoveries on
loans and
advances
previously
written off
Total
Shipping Finance
–26.5
10.7
–5.5
0.5
–20.8
Aviation Finance
–4.3
1.7
–
0.1
–2.5
Offshore Finance
–
–
–
–
–
Land Transport Finance
–0.1
1.2
–
–
1.1
Investment Management
–0.4
0.4
–
–
0.0
ITF Suisse
–0.1
0.2
–
0.0
0.1
Business no longer in line with DVB’s strategy
–8.4
–
–
1.0
–7.4
Other
Total specific allowance for credit losses
–
–
–0.1
0.0
–0.1
–39.8
14.2
–5.6
1.6
–29.6
–0.3
Shipping Finance
–6.3
6.0
–
–
Aviation Finance
–1.9
3.6
–
–
1.7
Offshore Finance
–0.6
0.4
–
–
–0.2
Land Transport Finance
–0.1
0.1
–
–
0.0
–
–
–
–
–
–0.4
0.9
–
–
0.5
–
Investment Management
ITF Suisse
Business no longer in line with DVB’s strategy
–
–
–
–
Other
–
–
–
–
–
–9.3
11.0
0.0
0.0
1.7
Total allowance as at 30 June 2014
–49.1
25.2
–5.6
1.6
–27.9
Total allowance as at 30 June 2013
–51.3
29.1
–6.6
0.4
–28.4
Total portfolio-based allowance for credit losses
DVB Bank SE | Half-Yearly Financial Report 2014
6
IN T ERIM M A N AGEMEN T REPOR T
IN T ERIM FIN A NCIA L STAT EMEN TS
RE V IE W REP OR T
F UR T HER INFORM ATION
Report on assets, liabilities, financial position, and profit or loss
DVB reported a marginal change in total assets, by 0.9% to
€23.2 billion as at the reporting date of 30 June 2014
(31 Dec 2013: €23.4 billion). The nominal volume of customer
lending (the aggregate of loans and advances to customers,
guarantees and indemnities, irrevocable loan commitments, and
derivatives) was down 2.4%, to €20.3 billion. In US dollar terms,
customer lending was down 3.1%, to US$27.7 billion. 
 Distribution of customer lending by business division
(30 June 2014)
Customer lending as at 30 June 2014 is broken down amongst
the divisions as shown in the following chart: 
DVB’s key financial indicators developed as follows:
Return on equity before taxes (ROE) was 6.5% – down 4.5 percentage points (H1 2013: 11.0%). The cost/income ratio (CIR)
rose by 9.4 percentage points, to 57.0% (H1 2013: 47.6%).
Shipping Finance 43.8% (–0.5 pp)
The ROE is calculated as follows: consolidated net income
before taxes (excluding consolidated net income attributable to
non-controlling interests) of €41.4 million is divided by the pro-rata
total of the weighted capital of €1,280.0 million (€640.0 million
for the period), which comprises the issued share capital, capital
reserve and retained earnings – before consolidated net income
for the period, and excluding existing actuarial gains and losses,
the fund for general banking risks and non-controlling interests.
Offshore Finance 9.9% (+0.3 pp)
Aviation Finance 30.5% (–0.3 pp)
Land Transport Finance 8.4% (+0.7 pp)
ITF Suisse 3.9% (+0.1 pp)
Investment Management 2.5% (+0.1 pp)
Business no longer in line with DVB’s strategy 1.0% (–0.4 pp)
The CIR is calculated by dividing general administrative expenses
of €91.7 million by €161.0 million (the total of net interest income,
net fee and commission income, results from investments
accounted for using the equity method, net other operating
income/expenses, and the net result from financial instruments
in accordance with IAS 39).
DVB has calculated its capital ratios in accordance with the
Basel III framework since the beginning of 2014. As at 30 June
2014 both the tier 1 ratio (19.4%) and the total capital ratio (21.1%)
were at a high level.
 Development of customer lending
€ bn
Change
(%)
30 Jun 2014
US$ bn
31 Dec 2013
9.2
–3.3
12.1
12.7
–4.7
6.4
–3.1
8.4
8.9
–5.6
30 Jun 2014
31 Dec 2013
Shipping Finance
8.9
Aviation Finance
6.2
Change
(%)
Offshore Finance
2.0
2.0
0.0
2.8
2.8
0.0
Land Transport Finance
1.7
1.6
6.3
2.4
2.2
9.1
Investment Management
0.5
0.5
0.0
0.6
0.6
0.0
ITF Suisse
0.8
0.8
0.0
1.1
1.1
0.0
0.2
0.3
–33.3
0.3
0.3
0.0
20.3
20.8
–2.4
27.7
28.6
–3.1
Business no longer in line with DVB’s strategy
Total
DVB Bank SE | Half-Yearly Financial Report 2014
7
IN T ERIM M A N AGEMEN T REPOR T
IN T ERIM FIN A NCIA L STAT EMEN TS
RE V IE W REP OR T
F UR T HER INFORM ATION
Report on forecasts and other statements on expected developments
This half-yearly financial report contains forward-looking
statements, including statements concerning the future
development of DVB.
There are no new insights that would indicate any material
changes to the forecasts regarding the development of transport
markets, the Transport Finance and Investment Management
portfolios, or to the financial outlook as set out in the group
management report on pages 59–61, 78–81, 93–95, 107–109,
115, 119, 123, 125 and 176–178 of the Annual Report 2013.
As usual, any assessments and forecasts contained herein
will always be subject to the risk of erroneous perception or
judgement errors, and may thus turn out to be incorrect. By
their very nature, any deliberations regarding developments
or events in the future are based on conjecture rather than
precise predictions. Actual future developments may therefore diverge from expectations, not least as a result of
fluctuations in capital market prices, exchange rates or
interest rates, or similar causes of uncertainty; or due to
fundamental changes in the economic environment.
Although we believe the forward-looking statements to be
realistic, DVB cannot accept any responsibility that they will
actually materialise, for the reasons outlined above.
DVB Bank SE | Half-Yearly Financial Report 2014
8
IN T ERIM M A N AGEMEN T REPOR T
IN T ERIM FIN A NCIA L STAT EMEN TS
RE V IE W REP OR T
F UR T HER INFORM ATION
Report on opportunities and risks
No risks which would jeopardise DVB’s continued existence are
expected to materialise during the remainder of the 2014 financial
year. Please refer to the report on opportunities and risks on
pages 152–174 of the Annual Report 2013, which contains detailed
information regarding risk management principles and organisation, DVB’s risk-bearing capacity and risk capital, and on the
different types of risk.
Opportunities available to DVB as well as risks that DVB is
exposed to during the second half of 2014 are outlined below.
DVB considers the economic outlook for 2014 to be generally
more positive than in the previous year: global gross domestic
product growth is expected to accelerate from 3.0% in 2013 to
3.7% in 2014 and 3.9% in 2015. This momentum, however, is not
evenly distributed across the globe.
Whilst the US economy continues to steadily pick up steam, the
euro zone will likely continue to face uneven economic development. The momentum of US economic growth is driven primarily
by domestic demand, partially supported by the less restrictive
‘fiscal brake’ following the US budget agreement. Even though
the euro zone is expected to see a slow acceleration of economic
growth, recovery in the crisis-ridden countries is likely to be
mixed and rather weak. Domestic demand will be burdened by
the high level of public-sector and private debt, and by fragmentation of financial markets. Exports are expected to continue
contributing to growth, however.
China’s economic growth is expected to remain strong, at around
7.5% (2014) and 7.3% (2015). Various political measures designed
to slow down credit growth and to increase the cost of capital
will take effect here – a controlled economic slowdown designed
to prevent the economy from overheating.
2014 is so far proving to be another challenging year for trade
and transport markets. Despite increasing signs of a bottoming
out in the shipping markets, passing the trough may well take
some more time. DVB has demonstrated in recent years that it
is able to deal with different market cycles – this is where the
Bank’s unique expertise lies.
Trend outlook and summary
As in the previous years, DVB envisages profit contributions to
increase during the second half of the year, including Investment
Management income, which is hard to project. The manifold
regulatory requirements will continue to impact DVB’s cost
structure, and will continue to burden the Bank’s employees. As
a result, it cannot be ruled out that DVB’s results will fall short
of the previous year.
Report on major related party transactions
Full reference is made in this respect to the information provided
on page 239, note 63.4 of the Annual Report 2013. As part of
DVB’s funding operations, the Bank’s securitised liabilities visà-vis DZ BANK AG were virtually unchanged as at 30 June 2014,
at €8,159.1 million (31 Dec 2013: €8,333.4 million). At the reporting date, the Bank had nine securities repurchase agreements
in place with a remaining term of less than one year, where
DZ BANK AG is the borrower. These transactions have been
recognised in loans to banks, in an aggregate amount of
€1,407.2 million. Other than this, there were no material changes
to related party transactions during the first half of 2014 which
might have materially affected the financial position or financial
performance of DVB Group.
DVB Bank SE | Half-Yearly Financial Report 2014
9
11
Condensed income statement
11
Earnings per share1)
11
Condensed statement of comprehensive income
12
Statement of financial position
13
Condensed statement of changes in equity
13
Condensed cash flow statement
14
Segment report1)
15 – 28 Notes
1) These tables are part of the Notes.
Interim financial statements
Transport Finance results1) as at 30 June
€ mn
180
160
143.6
141.4
140
132.8
131.7
120
114.4
100
80
60
60.9
59.1
55.7
56.7
57.2
52.1
54.3
46.6
42.9
40
29.7
29.0
20
12.2
10.8
8.3
21.5
18.3
14.0
14.1
10.6
9.9
0
2010
Shipping Finance
Aviation Finance
1) Before IAS 39 and before allocation of general costs
2011
Offshore Finance
Land Transport Finance
2012
Total Transport Finance
2013
2014
IN T ERIM M A N AGEMEN T REP OR T
IN T ERIM F IN A NCI A L S TAT EMEN T S
RE V IE W REP OR T
F UR T HER INFORM ATION
Condensed income statement
€ mn
Note
1 Jan 2014 –
30 Jun 2014
1 Jan 2013 –
30 Jun 2013
%
Condensed income statement
Net interest income
(3)
105.0
116.2
–9.6
Allowance for credit losses
(4)
–27.9
–28.4
–1.8
77.1
87.8
–12.2
(5)
51.0
55.7
–8.4
0.3
–0.5
–
–91.7
–86.2
6.4
Net interest income after allowance for credit losses
Net fee and commission income
Results from investments in companies accounted for using the equity method
General administrative expenses
(6)
Net other operating income/expenses
(7)
Consolidated net income before IAS 39 and taxes
Net result from financial instruments in accordance with IAS 39
(8)
2.3
6.5
–64.6
39.0
63.3
–38.4
2.4
3.1
–22.6
Consolidated net income before taxes
41.4
66.4
–37.7
Income taxes
–9.7
–8.5
14.2
Consolidated net income
31.7
57.9
–45.3
thereof: consolidated net income attributable to non-controlling interests
thereof: consolidated net income attributable to shareholders of DVB Bank SE
0.0
0.1
–
31.7
57.8
–45.2
Earnings per share
45,621,519
46,083,415
–1.0
Basic earnings per share
Average number of ordinary shares issued
0.69
1.25
–44.8
Diluted earnings per share
0.69
1.25
–44.8
Condensed statement of comprehensive income
€ mn
Consolidated net income
1 Jan 2014 –
30 Jun 2014
1 Jan 2013 –
30 Jun 2013
%
31.7
57.9
–45.3
–1.5
–3.4
–55.9
1.6
3.2
–50.0
–2.9
Items of other comprehensive income
that are recognised subsequently in profit or loss
Revaluation of AfS financial instruments
3.3
3.4
thereof: reclassifications to the income statement
thereof: changes in fair value
–1.7
–0.2
–
Cash flow hedges
–4.7
–5.0
–6.0
–84.8
thereof: changes in fair value
–0.5
–3.3
thereof: reclassifications to the income statement
–4.2
–1.7
–
Net investment hedges
–3.7
–2.2
68.2
thereof: changes in fair value
–2.7
–2.5
8.0
thereof: reclassifications to the income statement
–1.0
0.3
–
Currency translation
3.1
–0.4
–
Deferred taxes
2.2
1.0
–
that are not recognised subsequently in profit or loss
–0.2
0.0
–
Revaluation of defined benefit plans
–0.3
–
–
0.1
0.0
–
30.0
54.5
–45.0
0.0
0.1
–
30.0
54.4
–44.9
Items of other comprehensive income
Deferred taxes
Total comprehensive income
thereof: total comprehensive income attributable to non-controlling interests
thereof: total comprehensive income attributable to shareholders of DVB Bank SE
DVB Bank SE | Half-Yearly Financial Report 2014
11
IN T ERIM M A N AGEMEN T REP OR T
IN T ERIM F IN A NCI A L S TAT EMEN T S
RE V IE W REP OR T
F UR T HER INFORM ATION
Statement of financial position
Assets (€ mn)
Note
30 Jun 2014
31 Dec 2013
%
63.0
2,040.5
–96.9
(9)
2,437.1
212.3
–
Loans and advances to customers
(10)
18,659.3
18,896.9
–1.3
Allowance for credit losses
(11)
–207.4
–203.7
1.8
783.8
590.0
32.8
Cash and balances with the central bank
Loans and advances to banks
Positive fair values of derivative hedging instruments
Trading assets
Investment securities
(12)
240.4
345.0
–30.3
401.5
496.5
–19.1
Investments in companies accounted for using the equity method
(13)
238.1
226.6
5.1
Intangible assets
(14)
100.8
101.4
–0.6
Property and equipment
(15)
404.9
459.2
–11.8
50.8
49.3
3.0
77.1
149.1
–48.3
23,249.4
23,363.1
–0.5
30 Jun 2014
31 Dec 2013
%
–14.2
Income tax assets
Other assets
(16)
Total
Liabilities and equity (€ mn)
Note
Deposits from other banks
(17)
3,244.8
3,783.6
Deposits from customers
(18)
6,558.0
6,113.6
7.3
Securitised liabilities
(19)
11,167.0
11,134.5
0.3
–23.5
Negative fair values of derivative hedging instruments
219.4
286.7
Trading liabilities
123.3
107.1
15.1
(20)
47.4
62.5
–24.2
34.7
32.0
8.4
(21)
95.0
80.5
18.0
–1.3
Provisions
Income tax liabilities
Other liabilities
Subordinated liabilities
(22)
359.1
363.7
Equity
(23)
1,400.7
1,398.9
0.1
116.6
116.7
–0.1
–0.1
Issued share capital
Capital reserve
320.9
321.3
Retained earnings
919.4
918.7
0.1
82.4
82.4
0.0
thereof: fund for general banking risks
Revaluation reserve
8.9
7.7
15.6
Reserve from cash flow hedges
2.9
6.1
–52.5
–0.1
2.4
–
0.2
–2.9
–
31.7
27.9
13.6
0.2
1.0
–80.0
23,249.4
23,363.1
–0.5
Reserve from net investment hedges
Currency translation reserve
Distributable profit
Non-controlling interests
Total
DVB Bank SE | Half-Yearly Financial Report 2014
12
IN T ERIM M A N AGEMEN T REP OR T
IN T ERIM F IN A NCI A L S TAT EMEN T S
RE V IE W REP OR T
F UR T HER INFORM ATION
Condensed statement of changes in equity
€ mn
Equity as at 1 Jan
Consolidated net income attributable to shareholders of DVB Bank SE
Other comprehensive income
Dividend payment
Changes in treasury shares
Changes in consolidated group and other changes
Equity as at 30 Jun
1 Jan 2014 –
30 Jun 2014
1 Jan 2013 –
30 Jun 2013
1,398.9
1,328.9
5.3
31.7
57.8
–45.2
–50.0
%
–1.7
–3.4
–27.9
–27.9
0.0
–0.4
–1.8
–77.8
0.1
–0.2
–
1,400.7
1,353.4
3.5
Condensed cash flow statement
1 Jan 2014 –
30 Jun 2014
1 Jan 2013 –
30 Jun 2013
%
Cash flow from operating activities
–2,043.7
1,193.2
–
Cash flow from investing activities
99.7
49.4
–
Cash flow from financing activities
–33.5
–15.9
–
–1,977.5
1,226.7
–
2,040.5
878.0
–
63.0
2,104.7
–97.0
€ mn
Net change in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period
DVB Bank SE | Half-Yearly Financial Report 2014
13
IN T ERIM F IN A NCI A L S TAT EMEN T S
IN T ERIM M A N AGEMEN T REP OR T
RE V IE W REP OR T
F UR T HER INFORM ATION
Segment report1)
€ mn
14
Group
Shipping
Finance
Aviation
Finance
Offshore
Finance
Land
Transport
Finance
Investment
Management
Treasury
Other
Reconciliation/
consolidation
6/2014 6/2013
6/2014 6/2013
6/2014 6/2013
6/2014 6/2013
6/2014 6/2013
6/2014 6/2013
6/2014 6/2013
6/2014 6/2013
6/2014 6/2013
Net interest
income
105.0
116.2
43.4
52.0
42.7
43.4
12.4
14.6
8.9
7.8
–12.1
–1.7
–12.4
5.5
5.9
3.8
16.2
–9.2
–27.9
–28.4
–21.8
–21.3
–0.9
–0.7
–0.2
1.2
1.2
0.0
0.0
–0.5
0.0
0.0
–7.1
–8.0
0.9
0.8
77.1
87.8
21.6
30.7
41.8
42.7
12.2
15.8
10.1
7.8
–12.1
–2.2
–12.4
5.5
–1.2
–4.2
17.1
–8.4
51.0
55.7
17.3
18.3
12.5
14.1
9.3
13.9
4.0
2.8
–0.5
2.4
–0.1
–0.1
6.3
6.6
2.2
–2.3
0.3
–0.5
–
–
–
–
–
–
–
–
0.3
–0.4
–
–
–
–
0.0
–0.1
Allowance for
credit losses
Net interest
income after
allowance for
credit losses
Net fee and
commission
income
Results from
investments
in companies
accounted for
using the
equity method
Net other
operating
2.3
6.5
4.0
–2.4
–0.0
–0.1
–0.0
–0.0
–0.0
0.0
–0.2
7.5
0.0
0.0
2.1
1.2
–3.6
0.2
Net income
income/expenses
130.7
149.5
42.9
46.6
54.3
56.7
21.5
29.7
14.1
10.6
–12.5
7.3
–12.5
5.4
7.2
3.6
15.7
–10.6
Staff expenses
–54.8
–53.6
–14.2
–15.4
–7.3
–7.8
–2.0
–2.0
–1.3
–1.3
–4.8
–5.6
–0.7
–0.6
–20.0
–16.8
–4.5
–4.0
–34.7
–30.6
–4.2
–4.3
–1.9
–2.4
–0.6
–0.7
–0.3
–0.3
–1.8
–2.5
–0.2
–0.3
–16.8
–13.4
–8.9
–6.7
–2.2
–2.0
–0.0
–0.0
–0.0
–0.7
– 0.0
–0.0
0.0
–0.0
0.0
0.0
0.0
–0.0
–2.1
–1.9
–0.0
0.6
–91.7
–86.2
–18.4
–19.7
–9.2
–10.9
–2.6
–2.7
–1.6
–1.6
–6.6
–8.1
–0.9
–0.9
–38.9
–32.1
–13.4
–10.1
39.0
63.3
24.5
26.9
45.0
45.8
18.9
27.0
12.5
9.0
–19.1
–0.8
–13.4
4.5
–31.7
–28.5
2.3
–20.7
2.4
3.1
–0.5
–0.3
0.0
0.0
0.1
0.1
0.0
0.0
2.4
17.4
0.2
–14.8
0.0
–0.0
0.2
0.7
41.4
66.4
24.0
26.6
45.0
45.8
19.0
27.1
12.5
9.0
–16.7
16.6
–13.2
–10.3
–31.7
–28.5
2.5
–20.0
57.0
47.6
28.7
29.1
16.8
18.9
11.8
9.4
12.4
15.4
–65.0
32.1
–
–
–
–
–
–
6.5
11.0
14.8
12.4
57.8
42.4
124.7
312.7
90.6
52.3
–12.9
14.7
–
–
–
–
–
–
1,748.7 1,599.3
466.2
498.3
1,074.5 1,204.2
–
–
Non-staff
expenses
Depreciation,
amortisation,
impairment
and write-ups
General
administrative
expenses
Consolidated
net income
before IAS 39
and taxes
Net result
from financial
instruments
in accordance
with IAS 39
Consolidated
net income
before taxes
Cost/income
ratio2) (%)
Return
on equity3) (%)
Lending
volume4)
23,998.3 25,116.0
8,865.9 9,363.9
6,168.9 6,485.3
2,045.0 2,432.4
3,629.2 3,532.6
1) Before allocation of general costs
2) Excluding allowance for credit losses
3) Before taxes
4) According to internal management
DVB Bank SE | Half-Yearly Financial Report 2014
IN T ERIM M A N AGEMEN T REP OR T
IN T ERIM F IN A NCI A L S TAT EMEN T S
RE V IE W REP OR T
F UR T HER INFORM ATION
Notes
General notes
1
Summary of material accounting policies
applied
The present interim consolidated financial statements for the
period ended on 30 June 2014 have been prepared in accordance
with the International Financial Reporting Standards (IFRS), as
adopted by the European Union. They also comply with the
requirements for interim financial reporting set out in section 37w
of the German Securities Trading Act (WpHG).
The present interim consolidated financial statements are presented in the form of condensed interim financial statements in
accordance with IAS 34. The accounting policies applied therein
are in line with those applied for the consolidated financial statements as at 31 December 2013, with the following exceptions.
The following amendments to accounting standards and new
interpretations have been taken into account for the first time in
the interim financial statements:
•
•
•
•
•
•
•
•
•
•
IFRS 10 – Consolidated Financial Statements
IFRS 11 – Joint Arrangements
IFRS 12 – Disclosure of Interests in Other Entities
IAS 27 – Separate Financial Statements
IAS 28 – Investments in Associates and Joint Ventures
Amendments to IFRS 10, IFRS 11 and IFRS 12 –
Transition Guidance
Amendments to IFRS 10, IFRS 11 and IFRS 12 –
Investment Entities
Amendments to IFRS 32 – Offsetting Financial
Assets and Financial Liabilities
Amendments to IAS 39 – Financial Instruments: Novation of
Derivatives and Continuation of Hedge Accounting
IFRIC 21 – Levies
IFRS 10, IFRS 11 and IFRS 12 replace the previous rules set out
in IAS 27, IAS 31 and SIC-12 related to the determination of the
scope of consolidation in IFRS consolidated financial statements.
In this context, IFRS 10 is the central standard replacing the
corresponding rules included in IAS 27 in connection with SIC-12.
This creates a uniform concept of control which has to be applied
to all companies, including special purpose entities. In future,
IAS 27 will only include guidance on separate financial statements
prepared under IFRS. IFRS 11 applies to the inclusion of joint
ventures into consolidated financial statements and replaces the
rules included in IAS 31 in connection with SIC-13. The previous
option to include joint ventures by way of proportionate consolidation is revoked. In future, joint ventures will be included in the
consolidated financial statements by using the equity method
only. IFRS 12 summarises all disclosures to be made in the notes
with respect to subsidiaries, joint ventures, associates and unconsolidated structured entities. The amended standards will be
applied for the first time in the business year 2014. This has
material consequences primarily for disclosures according to
IFRS 12, which are to be disclosed in the consolidated financial
statements as at 31 December 2014 for the first time. The
change regarding the consolidation of joint ventures will have
no impact as these are already included using the equity method.
Essentially, the retrospective application of IFRS 10 will lead
to a €4.1 million increase in loans and advances to customers,
a €2.9 million decrease in property and equipment, and a
€0.8 million decrease in total allowance for credit losses. Equity
increased by €0.5 million as a result of first-time application.
The amendments to IAS 32 substantiate the existing rules for
offsetting financial instruments and clarify the definition of the
required legally enforceable right. The Group applies the amendments retrospectively from the business year 2014.
The amendments to IAS 39 – Financial Instruments: Recognition
and Measurement regarding the novation of derivatives and
continuation of hedge accounting provide relief with respect to
accounting for hedges. Pursuant to the amendment, a designated
hedging relationship is not required to be discontinued upon
novation of a derivative when the novation meets certain criteria.
Above all, novations have to be made in connection with the
transition to a central counterparty and within the framework
of legal or regulatory requirements. The Group applies the
amendments retrospectively since 1 January 2014.
The application of the amended accounting standards IAS 32
and IAS 39 does not have any material consequences for
DVB Bank SE’s consolidated interim financial statements.
The introduction of IFRIC 21 – Levies has clarified the interpretation of IAS 37 – Provisions, Contingent Liabilities and Contingent
Assets, to the effect that levies imposed by governments are
only recognised when the activities triggering payment of the
levy take place. The application of IFRIC 21 has no material
consequences for the consolidated financial statements.
DVB Bank SE | Half-Yearly Financial Report 2014
15
IN T ERIM M A N AGEMEN T REP OR T
IN T ERIM F IN A NCI A L S TAT EMEN T S
RE V IE W REP OR T
F UR T HER INFORM ATION
Notes
In the period under review, DVB entered into 16 securities repurchase agreements as lender. These agreements are genuine
repurchase agreements, where the securities are carried in the
balance sheet of the borrower and a corresponding receivable is
reported only.
Currency translation differences related to companies with a
different functional currency are recognised directly in equity,
in the currency translation reserve. In total, 21 companies
accounted for using the equity method have a different functional
currency (31 Dec 2013: 23 companies).
The following companies are no longer included in the scope of
consolidation:
•
•
•
•
•
Deucalion Capital V LLC, Majuro, Marshall Islands
Mount Bintang LLC, Majuro, Marshall Islands
Mount Bubu LLC, Majuro, Marshall Islands
Mount Lyderhorn LLC, Majuro, Marshall Islands
NedShip Scheepvaarthuis B.V., Rotterdam, Netherlands
The following companies accounted for using the equity method
are no longer included in the scope of consolidation:
To the extent that estimates are necessary for recognition and
measurement, these were made in accordance with the relevant
standards. The basis for these estimates is continuously reviewed
and adjusted, if necessary, taking into account historical experience as well as changed expectations with regard to future
developments.
• Capital Equipment Management Holding GmbH, Hamburg,
Germany
• Modex Energy Rentals LLC, Majuro, Marshall Islands
• Mount Faber KS, Oslo, Norway
• MS Olivia Schifffahrtsgesellschaft mbH & Co. KG, Hamburg,
Germany
2
The following companies are no longer included in the scope of
consolidation due to the first-time application of IFRS 10:
Group of consolidated companies
The group of consolidated companies changed as a result of the
establishment of the following, fully consolidated companies:
• Best Shipping LLC, Majuro, Marshall Islands
• Mile Shipping LLC, Majuro, Marshall Islands
• Hudson Services LLC, Majuro, Marshall Islands
• LogPay Fuel Italia S.r.l., Bozen, Italy
• LogPay Mobility Services GmbH, Eschborn, Germany
The following newly-established companies were included in
the group of consolidated companies using the equity method:
• Modex Holding Ltd, Tortola, British Virgin Islands
DVB Bank SE | Half-Yearly Financial Report 2014
16
IN T ERIM F IN A NCI A L S TAT EMEN T S
IN T ERIM M A N AGEMEN T REP OR T
RE V IE W REP OR T
F UR T HER INFORM ATION
Notes
3
Net interest income
5
1 Jan 2014 – 1 Jan 2013 –
30 Jun 2014 30 Dec 2013
€ mn
%
1 Jan 2014 – 1 Jan 2013 –
30 Jun 2014 30 Dec 2013
€ mn
from guarantees
from lending and money
381.1
387.3
–1.6
and indemnities
from the lending business
from bonds and other
fixed-income securities
2.4
2.7
–11.1
Other fee and
from finance leases
8.2
12.7
–35.4
commission income
41.1
68.6
–40.1
1.9
0.6
–
434.7
471.9
–7.9
for deposits
–139.1
–151.1
–7.9
for securitised liabilities
–131.7
–141.0
–6.6
–7.4
–8.0
–7.5
–51.5
–55.6
–7.4
–329.7
–355.7
–7.3
105.0
116.2
–9.6
Interest income
from operating leases
Interest expenses
Net interest income
4
commission income
commission expenses
16.7
–4.3
8.6
11.9
–27.7
53.4
58.3
–8.4
–2.4
–2.6
–7.7
51.0
55.7
–8.4
Net fee and
commission income
Interest expenses
for subordinated liabilities
1.8
44.6
Fee and
from equity investments and
other investment securities
2.1
42.7
Fee and
Current income
from operating leases
%
Fee and commission income
Interest income
market transactions
Net fee and commission income
Allowance for credit losses
6
General administrative expenses
1 Jan 2014 – 1 Jan 2013 –
30 Jun 2014 30 Dec 2013
€ mn
%
Staff expenses
–54.8
–53.6
2.2
Non-staff expenses
–34.7
–30.6
13.4
–2.2
–2.0
10.0
–91.7
–86.2
6.4
Depreciation, amortisation,
€ mn
1 Jan 2014 – 1 Jan 2013 –
30 Jun 2014 30 Dec 2013
impairment and write-ups
%
Additions
–49.0
–51.3
–4.5
Reversals
25.1
29.1
–13.7
Direct write-offs
–5.6
–6.6
–15.2
Total
7
Net other operating income/expenses
Recoveries on loans
€ mn
and advances previously
written off
Total
1.6
0.4
–
–27.9
–28.4
–1.8
Other operating income
Other operating expenses
Total
1 Jan 2014 – 1 Jan 2013 –
30 Jun 2014 30 Dec 2013
%
15.6
22.5
–30.7
–13.3
–16.0
–16.9
2.3
6.5
–64.6
DVB Bank SE | Half-Yearly Financial Report 2014
17
IN T ERIM F IN A NCI A L S TAT EMEN T S
IN T ERIM M A N AGEMEN T REP OR T
RE V IE W REP OR T
F UR T HER INFORM ATION
Notes
8
Net result from financial instruments
in accordance with IAS 39
1 Jan 2014 – 1 Jan 2013 –
30 Jun 2014 30 Dec 2013
€ mn
8.2
Hegde result (hedge accounting)
€ mn
1 Jan 2014 – 1 Jan 2013 –
30 Jun 2014 30 Dec 2013
%
%
Result from derivative
Trading result
3.6
4.3
–16.3
Hedge result
–3.6
–3.4
5.9
0.0
–
–
269.4
–84.6
–
–272.9
81.2
–
remeasurement
–3.5
–3.4
2.9
Ineffectiveness
Result from derivatives
entered into without
intention to trade
Result from hedged items
Result from
Result from the application
of the fair value option
hedging instruments
–0.3
1.6
–
investment securities
2.7
0.6
–
Total
2.4
3.1
–22.6
of cash flow hedges
–0.1
0.0
–
Total
–3.6
–3.4
5.9
1 Jan 2014 – 1 Jan 2013 –
30 Jun 2014 30 Dec 2013
%
Result from
8.1
Trading result
€ mn
1 Jan 2014 – 1 Jan 2013 –
30 Jun 2014 30 Dec 2013
8.3Result from the application of the
fair value option
€ mn
%
Loans and advances
designated as at fair value
Trading result
from derivatives
–0.3
–0.7
–57.1
currency transactions
through profit or loss
–
–
–
–
–
–
Securitised liabilities
from foreign
and subordinated loans
3.1
3.8
–18.4
and dividend payments
0.8
1.2
–33.3
through profit or loss
Other
0.0
–
–
Economic derivative
Total
3.6
4.3
–16.3
hedging instruments
–
–
–
Total
–
–
–
designated as at fair value
from interest
DVB Bank SE | Half-Yearly Financial Report 2014
18
IN T ERIM F IN A NCI A L S TAT EMEN T S
IN T ERIM M A N AGEMEN T REP OR T
RE V IE W REP OR T
F UR T HER INFORM ATION
Notes
9
Loans and advances to banks
€ mn
10
30 Jun 2014 31 Dec 2013
Loans and advances
thereof: payable on demand
%
291.5
199.1
46.4
86.4
199.1
–56.6
Loans and advances to customers
€ mn
30 Jun 2014 31 Dec 2013
Loans and advances
18,642.8
18,876.1
–1.2
thereof: payable on demand
206.4
113.3
82.2
18,436.4
18,762.8
–1.7
thereof: with a limited term
205.1
0.0
–
thereof: with a limited term
Money market transactions
2,145.6
13.1
–
Other loans and
thereof: payable on demand
–
–
–
advances to customers
thereof: with a limited term
2,145.6
13.1
–
Total
Other loans and
advances to banks
%
16.5
20.8
–20.7
18,659.3
18,896.9
–1.3
German customers
841.8
869.0
–3.1
0.0
0.1
–
Foreign customers
17,817.5
18,027.9
–1.2
Total
2,437.1
212.3
–
Total
18,659.3
18,896.9
–1.3
German banks
2,093.6
19.0
–
Foreign banks
343.5
193.3
77.7
2,437.1
212.3
–
Total
Loans and advances to banks include receivables in the amount
of €1,407.2 million in connection with securities repurchase
agreements with terms of less than twelve months where DVB
acts as lender and DZ BANK AG as borrower. The market value
of the German government bond under these repurchase agreements amounts to €1,413.0 million.
11
DVB does not hold any claims against any of the highly-indebted
euro zone countries (Greece, Ireland, Portugal, Spain and Italy).
Loans and advances to clients domiciled in these countries are
not exposed to any country-specific risks, especially due to the
fact that the relevant claims are collateralised by the financed
transport assets.
Allowance for credit losses
€ mn
Balance at 1 January
Additions
Specific allowance
30 Jun 2014
31 Dec 2013
Portfolio-based allowance
30 Jun 2014
31 Dec 2013
30 Jun 2014
Total
31 Dec 2013
159.5
103.3
45.0
46.0
204.5
149.3
39.8
110.2
9.3
43.4
49.1
153.6
Utilisation
–21.7
–25.0
–
–
–21.7
–25.0
Reversals
–14.2
–24.9
–11.0
–44.4
–25.2
–69.3
Changes resulting
from exchange rate fluctuations
Balance as at the reporting date
1.1
–4.9
–0.4
0.0
0.7
–4.9
164.5
158.7
42.9
45.0
207.4
203.7
DVB Bank SE | Half-Yearly Financial Report 2014
19
IN T ERIM F IN A NCI A L S TAT EMEN T S
IN T ERIM M A N AGEMEN T REP OR T
RE V IE W REP OR T
F UR T HER INFORM ATION
Notes
12
Investment securities
€ mn
15
30 Jun 2014 31 Dec 2013
%
Bonds and other
Property and equipment
€ mn
30 Jun 2014 31 Dec 2013
Land and buildings
fixed-income securities
369.4
464.2
–20.4
Operating and
thereof: bonds and notes
369.4
464.2
–20.4
office equipment
Equities and other
%
0.0
3.8
–
7.1
4.9
44.9
–20.8
Assets held
non-fixed-income securities
10.7
10.8
–0.9
under operating leases
170.6
215.3
Equity investments
21.4
21.5
–0.5
Other property and equipment
227.2
235.2
–3.4
401.5
496.5
–19.1
Total
404.9
459.2
–11.8
30 Jun 2014 31 Dec 2013
%
Total
DVB does not hold any investment securities issued by any of the
highly-indebted euro zone countries (Greece, Ireland, Portugal,
Spain and Italy).
13
16
Other assets
€ mn
Receivables from
Investments in companies accounted
for using the equity method
taxes not related to income
and prepaid expenses
€ mn
30 Jun 2014 31 Dec 2013
Investments in associates
%
116.4
100.7
15.6
Interests in joint ventures
121.7
125.9
–3.3
Total
238.1
226.6
5.1
30 Jun 2014 31 Dec 2013
%
14
Intangible assets
€ mn
Goodwill
Other intangible assets
Total
1.9
4.8
–60.4
Advance payments
95.0
95.0
0.0
5.8
6.4
–9.4
100.8
101.4
–0.6
1.9
1.4
35.7
Miscellaneous other assets
73.3
142.9
–48.7
Total
77.1
149.1
–48.3
In July 2010, DVB provided a US$175 million pre-delivery payment loan for the construction of ”Dalian Deepwater”, a
sixth-generation drillship, to Dalian Deepwater Developer Ltd,
St Helier, Jersey, Channel Islands, a newly-established special
purpose vehicle. In December 2012 and September 2013, additional amounts of US$25 million and US$6 million were provided.
The company mentioned has been included in DVB’s consolidated financial statements in accordance with IFRS 10.
In July 2010, Dalian Deepwater Developer entered into a purchase
agreement with a group of shipyards for delivery of a turnkey
drillship. The shipyard company is building this sixth-generation
drillship in its shipyard in Dalian, China.
The shipyard company did not deliver the ship as agreed by
15 April 2013. In addition, serious technical problems occurred
during ship construction. The shipyard revised the estimated
delivery date for the ship (31 March 2014).
DVB Bank SE | Half-Yearly Financial Report 2014
20
IN T ERIM M A N AGEMEN T REP OR T
IN T ERIM F IN A NCI A L S TAT EMEN T S
RE V IE W REP OR T
F UR T HER INFORM ATION
Notes
As a result of the substantial delay and the uncertainty surrounding the delivery date for the ship and the associated negative
consequences for marketing the ship, Dalian Deepwater Developer terminated the agreement on the purchase of the drillship
on 5 August 2013. The termination of the purchase agreement
was made primarily on the basis of an unilateral breach of contract under English law on the part of the shipyard as well as on
the basis of a contractual termination.
17
Deposits from other banks
€ mn
30 Jun 2014 31 Dec 2013
Loans and advances
%
2,914.4
3,621.4
thereof: payable on demand
580.5
548.8
5.8
thereof: with a limited term
2,333.9
3,072.6
–24.0
Money market transactions
330.4
162.2
–
thereof: payable on demand
–
–
–
On 5 September 2013, the legal counsel of Dalian Deepwater
Developer filed a motion to initiate arbitration proceedings at the
London Court of International Arbitration. This motion was followed by a letter from the Company lawyers of Dalian Deepwater
Developer to the shipyard in which the reasons for the termination
of the purchase agreement were set out, and a claim for damages
was made for an amount of US$215.6 million, which was due to
be paid not later than 30 September 2013.
thereof: with a limited term
330.4
162.2
–
Total
3,244.8
3,783.6
–14.2
German banks
2,972.3
3,480.3
–14.6
Foreign banks
272.5
303.3
–10.2
3,244.8
3,783.6
–14.2
At the end of November 2013, the shipyard offered payment
of a first instalment plus interest accrued in a total amount of
US$117 million. On 27 December 2013, Dalian Deepwater Developer accepted the offer, confirming that the claim for damages
had not been settled completely. On 14 January 2014, the shipyard
made a down-payment to Dalian Deepwater Developer in the
amount of US$110 million, followed by a further down-payment
of US$6.9 million on 17 January 2014.
€ mn
30 Jun 2014 31 Dec 2013
%
Total
18
–19.5
Deposits from customers
Loans and advances
6,494.9
6,071.3
7.0
thereof: payable on demand
341.8
320.8
6.5
thereof: with a limited term
6,153.1
5,750.5
7.0
Money market transactions
55.3
34.4
60.8
thereof: payable on demand
–
–
–
thereof: with a limited term
55.3
34.4
60.8
–1.3
Other deposits
On 7 February 2014, the shipyard filed a written defence and
counterclaim rejecting any obligations in addition to the payments
already made. As at 30 June 2014, the lawyers commissioned
by Dalian Deepwater Developer were confident of a favourable
outcome of the arbitration proceedings concerning the company.
With reference to the probabilities confirmed by the lawyers, the
claim for damages had a discounted value of US$155.0 million
as at 30 June 2014. The discount rate used was 6.32%, based
on a term of 18 months for the arbitration proceedings.
from customers
Total
German customers
Foreign customers
Total
7.8
7.9
6,558.0
6,113.6
7.3
6,151.9
5,772.7
6.6
406.1
340.9
19.1
6,558.0
6,113.6
7.3
DVB Bank SE | Half-Yearly Financial Report 2014
21
IN T ERIM F IN A NCI A L S TAT EMEN T S
IN T ERIM M A N AGEMEN T REP OR T
RE V IE W REP OR T
F UR T HER INFORM ATION
Notes
19
Securitised liabilities
€ mn
21
30 Jun 2014 31 Dec 2013
Ship covered bonds
%
€ mn
Other liabilities
30 Jun 2014 31 Dec 2013
%
701.9
695.8
0.9
Other tax liabilities
1.1
2.0
–45.0
Bearer bonds
10,465.1
10,438.7
0.3
Miscellaneous other liabilities
93.9
78.5
19.6
Total
11,167.0
11,134.5
0.3
Total
95.0
80.5
18.0
30 Jun 2014 31 Dec 2013
%
During the first half of 2014, the Bank issued bearer bonds with
a nominal value of €150.0 million and a term of four to six years.
Bearer bonds were due in the nominal amount of €246.5 million.
€8,159.1 million of securitised liabilities related to transactions
with the DZ BANK Group.
20
Provisions
22
Subordinated liabilities
€ mn
Subordinated
promissory note loans
226.1
231.9
–2.5
Subordinated bearer bonds
133.0
131.8
0.9
Other subordinated capital
0.0
0.0
–
359.1
363.7
–1.3
Total
€ mn
30 Jun 2014 31 Dec 2013
%
23
Provisions for
pension obligations
20.4
19.7
3.6
1.1
1.0
10.0
Provisions for early
and partial retirement plans
Other provisions
25.9
41.8
–38.0
Total
47.4
62.5
–24.2
Equity
Net retained profit of DVB Bank SE for the business year 2013
amounted to €27.880.422,00. On 12 June 2014, the Annual
General Meeting of DVB Bank SE resolved to pay dividends in
the amount of €27.880.422,00 from this net retained profit
(€0.60 for each no-par value share entitled to dividends). The
portion of dividends paid from net retained profit attributable to
treasury shares held by DVB on the date of the Annual General
Meeting was transferred to retained earnings.
DVB Bank SE | Half-Yearly Financial Report 2014
22
IN T ERIM M A N AGEMEN T REP OR T
IN T ERIM F IN A NCI A L S TAT EMEN T S
RE V IE W REP OR T
F UR T HER INFORM ATION
Notes
Notes to financial instruments
24
Classes and categories
of financial instruments
The carrying amounts and fair values of financial assets and
financial liabilities are allocated to the classes and categories
(or subcategories) of financial instruments as indicated in the
tables below: 
Changes in fair value were induced by changes in yield curves,
exchange rate fluctuations, and changes in credit quality.
Some investment securities available for sale are measured at
cost since it is impossible to identify market prices for these
instruments, nor can fair values be reliably estimated for them.
During the first half of 2014, gains from the disposal of investment
securities measured at cost were recognised in profit or loss in
the amount of €0.0 million (31 Dec 2013: €0.0 million).
30 Jun 2014
31 Dec 2013
Carrying
amount
Fair value
Carrying
amount
Fair value
Financial assets held for trading
240.4
240.4
345.0
345.0
thereof: trading assets
240.4
240.4
345.0
345.0
Financial assets designated as at fair value through profit or loss
–
–
–
–
thereof: loans and advances to banks
–
–
–
–
thereof: loans and advances to customers
–
–
–
–
thereof: investment securities
–
–
–
–
Derivative hedging instruments
783.8
783.8
590.0
590.0
thereof: positive fair values of derivative hedging instruments
783.8
783.8
590.0
590.0
Available-for-sale financial assets
357.8
357.8
420.5
420.5
thereof: investment securities
357.8
357.8
420.5
420.5
1,382.0
1,382.0
1,355.5
1,355.5
20,669.2
21,000.9
20,616.8
20,913.0
63.0
63.0
2,040.5
2,040.5
2,437.1
2,437.1
212.3
212.3
18,155.5
18,485.9
18,318.1
18,612.6
thereof: investment securities
13.6
14.8
45.9
47.6
Available-for-sale financial assets
30.2
30.2
30.1
30.1
thereof: investment securities
30.2
30.2
30.1
30.1
Other assets
34.4
34.4
21.4
21.4
20,733.8
21,065.5
20,668.3
20,964.5
 € mn
Financial assets measured at fair value
Loans and receivables
thereof: cash and balances with the central bank
thereof: loans and advances to banks
thereof: loans and advances to customers
Financial assets measured at amortised cost
Finance leases
296.4
280.7
375.1
358.7
thereof: loans and advances to customers
296.4
280.7
375.1
358.7
Other financial assets
296.4
280.7
375.1
358.7
DVB Bank SE | Half-Yearly Financial Report 2014
23
IN T ERIM M A N AGEMEN T REP OR T
IN T ERIM F IN A NCI A L S TAT EMEN T S
RE V IE W REP OR T
F UR T HER INFORM ATION
Notes
30 Jun 2014
31 Dec 2013
Carrying
amount
Fair value
Carrying
amount
Fair value
Financial liabilities held for trading
123.3
123.3
107.1
107.1
thereof: trading liabilities
123.3
123.3
107.1
107.1
thereof: other liabilities
–
–
–
–
Fair value option
–
–
–
–
thereof: deposits from other banks
–
–
–
–
thereof: deposits from customers
–
–
–
–
thereof: securitised liabilities
–
–
–
–
thereof: subordinated liabilities
–
–
–
–
Derivative hedging instruments
219.4
219.4
286.7
286.7
thereof: negative fair values of derivative hedging instruments
219.4
219.4
286.7
286.7
Financial liabilities measured at fair value
342.7
342.7
393.8
393.8
3,244.8
3,237.3
3,783.6
3,764.6
 € mn
Deposits from other banks
Deposits from customers
Securitised liabilities
Other liabilities
Subordinated liabilities
Financial liabilities measured at amortised cost
6,558.0
6,502.0
6,113.6
6,166.2
11,167.0
11,491.6
11,134.5
11,323.3
48.3
48.3
26.3
26.3
359.1
395.9
363.7
394.3
21,377.2
21,675.0
21,421.7
21,674.7
Finance leases
–
–
–
–
thereof: deposits from customers
–
–
–
–
Other financial liabilities
–
–
–
–
positive
%
negative
–19.2
25
Derivatives
€ mn
positive
Market values
30 Jun 2014
negative
positive
31 Dec 2013
negative
Interest rate products
839.9
307.9
649.8
381.1
29.3
Currency-related products
184.3
34.8
285.2
12.7
–35.4
–
–
–
–
–
–
–
1,024.2
342.7
935.0
393.8
9.5
–13.0
Other products
Total
DVB Bank SE | Half-Yearly Financial Report 2014
24
IN T ERIM M A N AGEMEN T REP OR T
IN T ERIM F IN A NCI A L S TAT EMEN T S
RE V IE W REP OR T
F UR T HER INFORM ATION
Notes
26
Determination of fair values of
financial instruments
To the extent that the measurement models use inputs that are
largely not observable on the market, the resulting fair values
are allocated to Level 3.
The fair value is the amount for which an asset could be exchanged
or a liability settled between knowledgeable, willing and independent parties in an arm’s length transaction.
The fair value of over-the-counter derivative financial instruments
is measured using the net risk exposure, using the exception
provided in IFRS 13.48. In a second step, credit risk exposure from
derivative financial instruments is recorded after determining
the net risk exposure. Credit valuation adjustments (CVA) and
debit valuation adjustments (DVA) are applied to derivative
financial instruments, whereby the instruments at hand are
largely non-optional. A semi-analytical approach is applied to
determine CVA/DVA, calculating the relevant values using economic loss rates as well as probabilities of default matching the
terms of the instruments.
The fair value of financial instruments which are listed on an
active market is determined on the basis of market prices. The
fair values of the financial instruments are allocated to Level 1.
The fair value of financial instruments which are not listed on an
active market is determined on the basis of accepted valuation
models used uniformly throughout all classes and allocated to
Level 2. Non-derivative financial instruments as well as derivative
financial instruments with no option components are measured
using the Discounted Cash Flow Method.
In the period under review, there were no reclassifications
between the individual levels.
The basis for deriving the discount rate is the use of currencyspecific swap curves. Derivative financial instruments with option
characteristics are measured using accepted option pricing
models (Black-Scholes-/Black-76-Model). The valuation models
use parameters that largely can be observed on the market.
Determination of fair values of financial instruments (€ mn)
30 Jun 2014
Level 1
31 Dec 2013
30 Jun 2014
Level 2
31 Dec 2013
30 Jun 2014
Level 3
31 Dec 2013
–
Loans and advances to banks
–
–
–
–
–
Loans and advances to customers
–
–
–
–
–
–
Trading assets
–
–
240.4
345.0
–
–
Positive fair values of
–
–
783.8
590.0
–
–
Investment securities
357.8
420.5
–
–
–
–
Financial assets measured at fair value
357.8
420.5
1,024.2
935.0
–
–
–
–
–
–
–
–
derivative hedging instruments
Deposits from other banks
Deposits from customers
–
–
–
–
–
–
Trading liabilities
–
–
123.3
107.1
–
–
derivative hedging instruments
–
–
219.4
286.7
–
–
Subordinated liabilities
–
–
–
–
–
–
Financial liabilities measured at fair value
–
–
342.7
393.8
–
–
Negative fair values of
DVB Bank SE | Half-Yearly Financial Report 2014
25
IN T ERIM M A N AGEMEN T REP OR T
IN T ERIM F IN A NCI A L S TAT EMEN T S
RE V IE W REP OR T
F UR T HER INFORM ATION
Notes
Determination of fair values of the financial instruments measured at amortised cost (€ mn)
30 Jun 2014
Level 1
31 Dec 2013
30 Jun 2014
Level 2
31 Dec 2013
30 Jun 2014
Level 3
31 Dec 2013
–
–
63.0
2,040.5
20,937.8
18,872.5
with the central bank
–
–
63.0
2,040.5
–
–
thereof: loans and advances to banks
–
–
–
–
2,437.1
212.3
18,612.6
Loans and receivables
thereof: cash and balances
thereof: loans and advances to customers
–
–
–
–
18,485.9
thereof: investment securities
–
–
–
–
14.8
47.6
Financial assets available for sale
–
–
–
–
30.2
30.1
thereof: investment securities
–
–
–
–
30.2
30.1
Other assets
–
–
–
–
34.4
21.4
18,924.0
Financial assets measured
at amortised cost
–
–
63.0
2,040.5
21,002.4
Finance leases
–
–
–
–
280.7
358.7
thereof: loans and advances to customers
–
–
–
–
280.7
358.7
Other financial assets
–
–
–
–
280.7
358.7
Deposits from other banks
–
–
3,237.3
3,764.6
–
–
Deposits from customers
–
–
6,502.0
6,166.2
–
–
Securitised liabilities
–
–
11,491.6
11,323.3
–
–
Other liabilities
–
–
–
–
48.3
26.3
Subordinated liabilities
–
–
395.9
394.3
–
–
Financial liabilities measured
at amortised cost
–
–
21,626.8
21,648.4
48.3
26.3
Finance leases
–
–
–
–
–
–
thereof: deposits from customers
–
–
–
–
–
–
Other financial liabilities
–
–
–
–
–
–
DVB Bank SE | Half-Yearly Financial Report 2014
26
IN T ERIM F IN A NCI A L S TAT EMEN T S
IN T ERIM M A N AGEMEN T REP OR T
RE V IE W REP OR T
F UR T HER INFORM ATION
Notes
27
Financial assets and liabilities not offset
Amounts with unrecognised
offsetting agreements
Gross amount
of financial
instruments
not offset
€ mn
Offsetting
Net amounts
of items
carried on the
balance sheet
Financial
instruments
Amounts of
cash collateral
received/provided
Net amount
of financial
instruments
not offset
30 Jun
31 Dec
30 Jun
31 Dec
30 Jun
31 Dec
30 Jun
31 Dec
30 Jun
31 Dec
30 Jun
31 Dec
2014
2013
2014
2013
2014
2013
2014
2013
2014
2013
2014
2013
1,024.2
935.0
–
–
1,024.2
935.0
–9.1
–373.9
–694.0
–459.9
321.1
101.2
342.7
393.8
–
–
342.7
393.8
–9.1
–373.9
–86.8
–
246.8
19.9
Positive fair values
of derivative financial
instruments
Negative fair values
of derivative financial
instruments
28
Unrecognised differences upon initial
recognition
Unrecognised gains upon initial recognition in 2011 resulted
from the purchase of financial assets. The related amortisation
amounts were €0.6 million (31 Dec 2013: €1.2 million) in the first
half of 2014. Taking currency translation effects of €–0.1 million
(31 Dec 2013: €–0.3 million) into account, the closing balance
was €6.4 million (31 Dec 2013: €6.9 million).
DVB Bank SE | Half-Yearly Financial Report 2014
27
IN T ERIM F IN A NCI A L S TAT EMEN T S
IN T ERIM M A N AGEMEN T REP OR T
RE V IE W REP OR T
F UR T HER INFORM ATION
Notes
Other disclosures
Responsibility statement
29
To the best of our knowledge, and in accordance with the applicable reporting principles for interim financial reporting, the
interim consolidated financial statements give a true and fair
view of the assets, liabilities, financial position and profit or loss
of the DVB Group, and the management report of the DVB Group
includes a fair review of the development and performance of
the business and the position of the Group, together with a
description of the principal opportunities and risks associated
with the expected development of the DVB Group for the
remaining months of the financial year.
Financial guarantee contracts, contingent
liabilities and other commitments
€ mn
30 Jun 2014 31 Dec 2013
%
Financial guarantee contracts
from guarantees
246.6
225.5
9.4
1,204.8
1,213.2
–0.7
26.1
16.2
61.1
5.4
5.0
8.0
14.0
9.5
47.4
Contingent liabilities from
irrevocable loan commitments
Other commitments
thereof: within one year
thereof: within one to
five years
thereof: five years or more
Total
6.7
1.7
–
1,477.5
1,454.9
1.6
Frankfurt/Main, 8 August 2014
DVB Bank SE
The Board of Managing Directors
Wolfgang F. Driese
CEO and Chairman of the Board of Managing Directors
Ralf Bedranowsky
Member of the Board of Managing Directors
Bertrand Grabowski
Member of the Board of Managing Directors
DVB Bank SE | Half-Yearly Financial Report 2014
28
IN T ERIM M A N AGEMEN T REP OR T
IN T ERIM FIN A NCIA L STAT EMEN TS
RE V IE W REPOR T
F UR T HER INFORM ATION
Review report
To DVB Bank SE, Frankfurt/Main
We have reviewed the interim condensed consolidated financial
statements, comprising the condensed income statement, the
condensed statement of comprehensive income, the statement of
financial position, the condensed statement of changes in equity,
the condensed cash flow statement and selected explanatory
notes, and the interim group management report of DVB Bank SE,
Frankfurt/Main, for the period from 1 January 2014 to
30 June 2014, which are part of the six-monthly financial report
pursuant to section 37w of the German Securities Trading Act
(WpHG). The preparation of the interim condensed consolidated
financial statements in accordance with IFRSs on interim financial
reporting as adopted by the EU and of the group management
report in accordance with the requirements of the WpHG applicable to interim group management reports is the responsibility
of the Company’s management. Our responsibility is to issue a
report on the interim condensed consolidated financial statements
and the interim group management report based on our review.
We conducted our review of the interim condensed consolidated
financial statements and the interim group management report
in accordance with German generally accepted standards for the
review of financial statements promulgated by the Institut der
Wirtschaftsprüfer (Institute of Public Auditors in Germany). Those
standards require that we plan and perform the review to obtain
a certain level of assurance in our critical appraisal to preclude
that the interim condensed consolidated financial statements
are not prepared, in all material respects, in accordance with
IFRSs on interim financial reporting as adopted by the EU and
that the interim group management report is not prepared, in all
material respects, in accordance with the provisions of the WpHG
applicable to interim group management reports. A review is
limited primarily to making inquiries of company personnel and
applying analytical procedures and thus does not provide the
assurance that we would obtain from an audit of financial
statements. In accordance with our engagement, we have not
performed an audit and, accordingly, we do not express an audit
opinion.
Based on our review, nothing has come to our attention that
causes us to believe that the interim condensed consolidated
financial statements are not prepared, in all material respects, in
accordance with IFRSs on interim financial reporting as adopted
by the EU or that the interim group management report is not
prepared, in all material respects, in accordance with the provisions of the WpHG applicable to interim group management
reports.
Eschborn, Frankfurt/Main, 8 August 2014
Ernst & Young GmbH
Wirtschaftsprüfungsgesellschaft
Lösken
Wirtschaftsprüfer
(German Public Auditor)
Stapel
Wirtschaftsprüfer
(German Public Auditor)
DVB Bank SE | Half-Yearly Financial Report 2014
29
IN T ERIM M A N AGEMEN T REP OR T
30
DVB worldwide
32
Financial calendar
32
Imprint
IN T ERIM FIN A NCIA L STAT EMEN TS
RE V IE W REP OR T
F UR T HER INF ORM AT ION
Further information
DVB worldwide
Bergen
Oslo
London
Amsterdam
Hamburg
Frankfurt/Main
New York
Zurich
Tokyo
Piräus Athens
Curaçao
Singapore
Shipping Finance
Aviation Finance
Offshore Finance
Land Transport Finance
AMERICA
EUROPE
ASIA/PACIFIC
IN T ERIM M A N AGEMEN T REP OR T
IN T ERIM FIN A NCIA L STAT EMEN TS
RE V IE W REP OR T
F UR T HER INF ORM AT ION
DVB worldwide
Head office
The Americas
Frankfurt/Main
DVB Bank SE
Platz der Republik 6
60325 Frankfurt/Main, Germany
Phone +49 69 9750 40, Fax +49 69 9750 4444
Curaçao
DVB Bank America N.V.
Zeelandia Office Park, Kaya W.F.G. Mensing 14
Willemstad, Curaçao
Phone +599 9 4318 700, Fax +599 9 4652 366
Europe
Amsterdam
DVB Bank SE
Amsterdam Branch, WTC Schihol, Tower F, 6th Floor
Schiphol Boulevard 255, 1118 BH Schiphol, The Netherlands
Phone +31 88 3997 900, Fax +31 88 3998 301
Athens
DVB Bank SE
Representative Office Greece
3, Moraitini Street & 1, Palea Leof. Posidonos, Bldg. K4
Delta Paleo Faliro, 175 61 Athens, Greece
Phone +30 210 4557 400, Fax +30 210 4557 420
Bergen
DVB Bank SE
Nordic Branch, Strandgaten 18, 5013 Bergen, Norway
Phone +47 5 5309 400, Fax +47 5 5309 450
Hamburg
DVB Bank SE
Hamburg Office, Ballindamm 6, 20095 Hamburg, Germany
Phone +49 40 3080 040, Fax +49 40 3080 0412
New York
DVB Transport (US) LLC
Representative Office of DVB Bank SE
609 Fifth Avenue, New York, NY 10017-1021, USA
Phone +1 212 588 8864, Fax +1 212 588 8936
DVB Capital Markets LLC
609 Fifth Avenue, New York, NY 10017-1021, USA
Phone +1 212 858 2624, Fax +1 212 588 0424
Asia
Singapore
DVB Group Merchant Bank (Asia) Ltd
77 Robinson Road # 30-02, Singapore 068896
Phone +65 6511 3433, Fax +65 6511 0700
Tokyo
DVB Transport Finance Ltd
Tokyo Branch, The Imperial Hotel Tower, 14th Floor (A-2)
1-1, Uchisaiwaicho 1-chome, Chiyoda-ku
Tokyo 100-0011, Japan
Phone +81 3 3593 7700, Fax +81 3 3593 7860
London
DVB Bank SE
London Branch, Park House, 6th Floor
16–18 Finsbury Circus, London, EC2M 7EB, United Kingdom
Phone +44 20 7256 4300, Fax +44 20 7256 4450
Oslo
DVB Bank SE
Nordic Branch, Haakon VII’s gate 1, 0161 Oslo, Norway
Phone +47 2 3012 200, Fax +47 2 3012 250
Zurich
ITF International Transport Finance Suisse AG
Wasserwerkstrasse 12, 8006 Zurich, Switzerland
Phone +41 44 3656 100, Fax +41 44 3656 200
www.dvbbank.com e-mail: info@dvbbank.com
DVB Bank SE | Half-Yearly Financial Report 2014
31
IN T ERIM M A N AGEMEN T REP OR T
IN T ERIM FIN A NCIA L STAT EMEN TS
RE V IE W REP OR T
F UR T HER INF ORM AT ION
Financial calendar
By 14 November 2014
19 March 2015

Publication of the Interim Management Statement
during the second half of 2014
(for the first nine months ending 30 September 2014)

A nnual Accounts Press and Analyst Conference
Frankfurt/Main
25 June 2015
5 December 2014

Publication of the
Declaration of Compliance for 2014/2015

A nnual General Meeting
Frankfurt/Main
Imprint
DVB Bank SE
Platz der Republik 6
60325 Frankfurt/Main, Germany
Elisabeth Winter
Head of Group Corporate Communications
Phone +49 69 9750 4329
Sabine Schlieben
Manager Investor Relations
Phone +49 69 9750 4449
Design concept and realisation
GolinHarris B&L GmbH, Frankfurt/Main, Germany
DVB Group’s Half-Yearly Financial Report 2014 is
published as a PDF file on our webpage www.dvbbank.com.
It is available in German and English.
After scanning this QR code with your
smartphone, you will have direct access to
our website.
DVB Bank SE | Half-Yearly Financial Report 2014
32