Half-Yearly Financial Report 2015

2015

Half-Yearly Financial Report as at 30 June

DVB Bank Group | Half-Yearly Financial Report 2015

Contents2

Further informationen 34 – 36

34 DVB worldwide

36 Imprint

03 Key figures at a glance

Interim management report 04 – 13

05 Financial position and performance

10 Report on expected developments

12 Report on opportunities and risks

13 Report on major related party transactions

Interim financial statements 14 – 32

15 Condensed income statement

15 Earnings per share

16 Condensed statement of comprehensive income

17 Statement of financial position

18 Condensed statement of changes in equity

18 Condensed cash flow statement

19 Segment report

20 Notes

Review report 33

Legal notice

Further information

Symbols


3Key figures at a glance

€ mn

1 Jan 2015– 30 Jun 2015

1 Jan 2014– 30 Jun 2014

%

Earnings data

Net interest income 92.5 105.0 –11.9

Allowance for credit losses –39.7 –27.9 42.3

Net interest income after allowance for credit losses 52.8 77.1 –31.5

Net fee and commission income 52.3 51.0 2.5

Results from investments in companies accounted for using the equity method 3.1 0.3 –

Net other operating income/expenses –36.8 2.3 –

Total income 71.4 130.7 –45.4

General administrative expenses –88.2 –87.7 0.6

Net result from financial instruments in accordance with IAS 39 75.0 2.4 –

Consolidated net income before bank levy, BVR1) and taxes 58.2 45.4 28.2

Consolidated net income before taxes 43.3 41.4 4.6

Key financial indicators

Return on equity (before taxes, %) 8.7 6.5 2.2 pp

Cost/income ratio (%) 47.4 54.4 –7.0 pp

Economic Value Added (€ million) –34.6 –2.6 –

€ mn 30 Jun 2015 31 Dec 2014 %

Key items from the statement of financial position

Business volume 27,293.8 26,215.0 4.1

Customer lending volume 25,273.1 23,310.2 8.4

Total assets 25,351.7 24,510.8 3.4

Loans and advances to customers 22,547.5 20,633.0 9.3

Deposits from customers 7,190.4 7,097.0 1.3

Securitised liabilities 11,692.1 11,305.8 3.4

Subordinated liabilities 796.9 487.2 63.6

Equity 1,465.3 1,437.4 1.9

Total capital in accordance with the Capital Requirements Regulation

Common equity tier 1 1,157.7 1,222.0 –5.3

Tier 2 capital 460.1 186.6 –

Modified available capital 1,617.8 1,408.6 14.9

Capital ratios – Basel III (%)

Common equity tier 1 ratio 16.6 18.7 –2.1 pp

Total capital ratio 23.3 21.6 1.7 pp

30 Jun 2015 30 Jun 2014 %

Staff by business division

Transport Finance/Investment Management 304 308 –1.3

Service areas 227 216 5.1

LogPay Financial Services 57 51 11.8

Total active staff 588 575 2.3

Rating 2015 2014 2013

Standard & Poor’s

Long-term counterparty credit rating A+ A+ A+

Short-term credit rating A-1 A-1 A-1

Outlook stable stable stable

Fitch Ratings2)

Long-term Issuer Default Rating AA- A+ A+

Short-term Issuer Default Rating F1+ F1+ F1+

1) National Association of German Co-operative Banks 2) Within the scope of the German Co-operative Financial Services Network’s rating


Interim management report

05 Financial position and performance


12 Report on opportunities and risks

13 Report on major related party transactions

€ mn150

125

100

75

50

25

0

–25

–50

112.2

74.9

53.5

6.2

2011

112.5

70.8

54.6

43.9

2012

116.2

66.4

55.7

6.5

2013

105.0

51.0

41.4

2.3

2014

92.5

52.3

43.3

–36.8

2015

Development of income, as at 30 June

Net interest income Net fee and commission income Net other operating income/expenses Consolidated net income before taxes


5

The individual items of the half-yearly financial statements developed as follows:

Interest income rose by 18.9%, from €434.7 million to €516.8 million, with interest income from the lending transactions up 5.0%, from €381.1 million to €400.2 million. Current income from finance leases decreased slightly, to €8.1 million (previous year: €8.2 million), whilst interest income from operating leases – derived largely from those funds managed by the Investment Management division which must be consolidated – were up significantly, to €99.6 million (previous year: €41.1 million).

DVB’s new business in Shipping Finance, Aviation Finance, Offshore Finance and Land Transport Finance during the first half of 2015 comprised 100 transactions with an aggregate volume of €3.6 billion (previous year: 78 transactions with an aggregate volume of €2.2 billion). Based on a generally cycle- neutral lending policy, DVB continued to successfully implement its tried-and-tested strategy of pricing exposures in line with the risks involved. It achieved an average gross interest margin of 235 basis points on new Transport Finance business (previous year: 279 basis points).

Interest expenses rose by 28.7%, from €329.7 million to €424.3 million, including interest expenses from operating leases, which rose from €51.5 million to €106.1 million. The latter item includes expenses from funds managed by the Investment Management division which must be consolidated, as well as risk costs for ships held by the Bank within the scope of restructuring measures. Higher interest income was not sufficient to compen-sate these effects. As a result, net interest income declined by 11.9%, from €105.0 million to €92.5 million.

DVB Bank’s consolidated net income before taxes in line with the previous year

Overall, DVB considers Group developments during the first half of 2015 to be stable and satisfactory. Consolidated net income before taxes was up 4.6%, to €43.3 million (previous year: €41.4 million). Essentially, this result was characterised by five factors:

• Interest income, and fee and commission income from the Bank’s operating Transport Finance business developed favourably, thanks to attractive new business.

• Allowance for credit losses amounted to €39.7 million (previous year: €27.9 million); as expected, this was due to legacy burdens in some segments of the shipping market.

• The Investment Management division generated significant non-recurring income through the partial sale of a share-holding in Wizz Air Holdings Plc. Net result from financial instruments in accordance with IAS 39 was therefore boosted to a total of €75.0 million (previous year: €2.4 million).

• Other operating expenses was burdened by a non-recurring effect: an unscheduled write-down of a claim for damages in the amount of €36.4 million which had to be recognised as a result of a final arbitration ruling issued by the London Court of International Arbitration with regard to DVB’s consolidated subsidiary Dalian Deepwater Developer.

• Expected bank levy charges in the amount of €10.3 million as well as €4.6 million in expenses for the Deposit Guarantee Scheme of the National Association of German Co-operative Banks already needed to be deducted at the beginning of the year.

The present interim management report and condensed consolidated financial statements of DVB Bank Group as at 30 June 2015 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 Bank Group.

Consolidated net income before taxes, as at 30 June

€ mn90

75

60

45

30

15

0

74.9

2011

70.8

2012

66.4

2013

41.4

2014

43.3

2015

Financial position and performance

INTERIM MANAGEMENT REPOR T INTERIM F INANCIAL STATEMENTS RE VIE W REPORT FURTHER INFORMATION


6

Net fee and commission income, which primarily includes fees and commissions from new Transport Finance business, and asset management and advisory fees, was up 2.5%, to €52.3 million (previous year: €51.0 million). Fee and commission income was up 10.1%, to €58.8 million (previous year: €53.4 million); fee and commission expenses amounted to €6.5 million (previous year: €2.4 million).

Results from investments in companies accounting for using the equity method increased from €0.3 million to €3.1 million.

Net other operating income/expenses amounted to –€36.8 million (previous year: €2.3 million). Other operating expenses was burdened by a non-recurring effect: an unscheduled write-down of a claim for damages in the amount of €36.4 million which had to be recognised as a result of a final arbitration ruling issued by the London Court of International Arbitration with regard to DVB’s consolidated subsidiary Dalian Deepwater Developer Ltd, St Helier, Jersey, British Channel Islands.

Allowance for credit losses amounted to €39.7 million (previous year: €27.9 million). Specifically, new allowance recognised for credit losses totalled €69.2 million (previous year: €49.1 million), of which €45.0 million (previous year: €32.8 million) was accounted for by Shipping Finance, due to the persistently difficult environ-ment in some segments of the international shipping market. Conversely, allowance for credit losses of €34.8 million (previous year: €25.2 million) was reversed (of which €19.5 million in Shipping Finance – previous year: €16.7 million). Net interest income after allowance for credit losses of €52.8 million was lower than the previous year’s figure of €77.1 million.

Total allowance for credit losses (comprising specific allowance for credit losses, portfolio-based allowances for credit losses, and provisions) rose to €232.5 million, up 6.2% from year-end 2014 (€219.0 million).

Allowance for credit losses by business division as at 30 June 2015 (€ mn)

Additions

Reversals

Direct write-offs

Recoveries on loans and advances

previously written off

Total

Shipping Finance –38.5 11.8 –2.8 0.3 –29.2

Aviation Finance –0.4 1.0 – – 0.6

Offshore Finance –3.2 – – – –3.2

Land Transport Finance – 0.1 – – 0.1

Investment Management –11.2 6.5 – – –4.7

ITF Suisse –5.6 0.8 – – –4.8

Business no longer in line with DVB’s strategy –0.1 – –2.8 0.2 –2.7

Other – – –0.2 0.0 –0.2

Total specific allowance for credit losses –59.0 20.2 –5.8 0.5 –44.1

Shipping Finance –6.5 7.7 – – 1.2

Aviation Finance –1.6 4.5 – – 2.9

Offshore Finance –0.8 1.4 – – 0.6

Land Transport Finance –0.7 0.4 – – –0.3

Investment Management – – – – –

ITF Suisse –0.6 0.6 – – 0.0

Business no longer in line with DVB’s strategy – – – – –

Other – – – – –

Total portfolio-based allowance for credit losses –10.2 14.6 – – 4.4

Total provisions – – – – –

Total as at 30 June 2015 –69.2 34.8 –5.8 0.5 –39.7

Total as at 30 June 2014 –49.1 25.2 –5.6 1.6 –27.9



7

Given the arbitration ruling and the resulting non-recurring effect, the Bank published an ad-hoc disclosure on

7 August 2015 which is available on its website www.dvbbank.com > Investors > Publications > Ad-hoc disclosures.

For more detailed explanations, please refer to the Notes to DVB Bank Group’s half-yearly financial report (page 24). The report is also available as PDF file on DVB’s webpage www.dvbbank.com > Investors > Publications > Financial reports.

At €71.4 million, total income for the first six months of 2015 (comprising net interest income after allowance for credit losses, net fee and commission income, results from investments in companies accounted for using the equity method, and net other operating income/expenses), was down by 45.4% year-on-year (previous year: €130.7 million).

General administrative expenses rose by 0.6%, to €88.2 million (previous year: €87.7 million). Staff expenses declined by 6.0%, to €51.5 million (previous year: €54.8 million), largely due to lower provisions for variable remuneration components and lower pension expenses. Together with its DVB LogPay Financial Services subsidiary, DVB employed a total of 588 staff (in active employment) as at 30 June 2015, an increase of 13 compared to the previous year (575 employees). Non-staff expenses (including amortisation, depreciation and impairment) rose by 11.6%, from €32.9 million to €36.7 million.

Net result from financial instruments in accordance with IAS 39 (comprising the trading result, the hedge result, the result from the application of the fair value option, the result from derivatives entered into without intention to trade, and the net result from investment securities) – which is generally volatile – amounted to €75.0 million (previous year: €2.4 million). The net figure largely comprised a significant non-recurring operating income from the sale of investment securities – the partial sale of a shareholding in Wizz Air Holdings Plc. Accordingly, net result from investment securities was up by €44.3 million, to €47.0 million (previous year: €2.7 million).

Consolidated net income before bank levy, BVR, and taxes thus improved by 28.2%, to €58.2 million (previous year: €45.4 million). The expected bank levy charges of €10.3 million (2014: actual bank levy of €3.6 million) as well as €4.6 million in expenses for the Deposit Guarantee Scheme of the National Association of German Co-operative Banks (2014: €4.4 million in expenses for the BVR Deposit Guarantee Scheme) needed to be deducted from this figure already at the beginning of the year.

Consolidated net income before taxes was up 4.6% year- on-year, to €43.3 million (previous year: €41.4 million), whilst consolidated net income after taxes amounted to €30.1 million and thus almost reached previous year’s figure of €31.7 million.



Total income1) General

administrative

expenses

Net result from

financial instruments in

accordance with IAS 39 incl.

net result from

investment securities

Expenses for the bank levy

and the BVR2) Deposit

guarantee Scheme

(fiscal year)

Income taxes Consolidated

net income

71.4

–88.2

+75.0

–14.9

–13.2

30.1

1) Comprising net interest income after allowance for credit losses, net fee and commission income, results from investments in companies accounted for using the equity method, and net other operating income/expenses

2) National Association of German Co-operative Banks

Consolidated net income, as at 30 June 2015 (€ mn)


8

DVB’s consolidated total assets increased to €25.4 billion as at 30 June 2015, up 3.7% from the 2014 year-end (31 December 2014: €24.5 billion) mainly due to currency translation effects.

DVB’s nominal volume of customer lending (the aggregate of loans and advances to customers, guarantees and indemnities, irrevocable loan commitments, and derivatives) increased by 8.6%, reflecting currency translation effects, to €25.3 billion. In US dollar terms, it was unchanged, at US$28.3 billion.

The distribution of customer lending amongst the Bank’s busi-ness divisions as at 30 June 2015 was as follows:

€ bn US$ bn30 Jun 2015 31 Dec 2014 % 30 Jun 2015 31 Dec 2014 %

Shipping Finance 11.0 10.1 8.9 12.3 12.3 −

Aviation Finance 8.1 7.1 14.1 9.1 8.6 5.8

Offshore Finance 2.5 2.3 8.7 2.8 2.8 −

Land Transport Finance 1.8 2.0 –10.0 2.0 2.4 –16.7

ITF Suisse 1.1 1.0 10.0 1.2 1.2 −

Investment Management 0.6 0.6 − 0.7 0.7 −

Business no longer in line with DVB’s strategy 0.2 0.2 − 0.2 0.3 –33.3

Total 25.3 23.3 8.6 28.3 28.3 −

Development of the customer lending volume, as at 30 June 2015

Shipping Finance 43.5% (+ 0.2 pp)

Aviation Finance 32.0% (+ 1.5 pp)

Offshore Finance 9.9% (0.0 pp)

Land Transport Finance 7.1% (– 1.5 pp)

ITF Suisse 4.3% (0.0 pp)

Investment Management 2.4% (– 0.2 pp)

Business no longer in line with DVB’s strategy 0.8% (0.0 pp)

Distribution of customer lending by business division, as at 30 June 2015



9

The risk-adjusted EVA™ is a key indicator used for the manage-ment and assessment of the Bank’s business; it represents residual profit and expresses net profit (as an absolute amount) after deduction of costs for risk capital employed. To date, the IAS 39 result was not included for calculating this indicator, due to the fact that it largely comprised measurement results which could not be allocated to the Bank’s operating business. Net result from investment securities now also regularly includes operating results. Since the beginning of the year, this portion of the IAS 39 result has been included in the calculation of the indicator. On this basis, EVA™ was calculated by deducting pro-rata risk capital costs of €49.9 million from consolidated net income before IAS 39 and taxes (but including net result from investment securities) of €15.3 million.

DVB discloses capital ratios determined in accordance with the Basel III framework (Advanced Approach). On this basis, the common equity tier 1 ratio as at 30 June 2015 was 16.6% (31 December 2014: 18.7%), whilst the total capital ratio amounted to 23.3% (31 December 2014: 21.6%).

DVB’s key financial indicators developed as follows:

The return on equity (ROE) before taxes stood at 8.7% – up by 2.2 percentage points (previous year: 6.5%), and the cost/income ratio (CIR) declined by 7.0 percentage points, to 47.4% (previous year: 54.4%). Risk-adjusted Economic Value Added (EVATM) – which has included operating net result from investment securities since the beginning of this year – amounted to –€34.6 million (previous year: –€2.6 million).

The ROE was calculated as follows: consolidated net income before bank levy, BVR and taxes – attributable to shareholders of DVB Bank SE – of €58.2 million was divided by the total of the weighted capital (issued share capital, capital reserves and retained earnings, excluding the fund for general banking risks, non-controlling interests and deferred taxes, and before con-firmation of consolidated net income) of €1,340.0 million (€670.0 million on a pro-rata basis). Expenses for the bank levy and the BVR Deposit Guarantee Scheme were previously reported in non-staff expenses, on a pro-rata basis. This calculation meth-odology was amended for the first time with the three-month results 2015: since then, the expected amount in expenses must be recognised already at the beginning of the year.

The CIR was calculated by dividing general administrative expenses of €88.2 million by €186.1 million (the total of net interest income (before allowance for credit losses), net fee and commission income, results from investments in companies accounted for using the equity method, net other operating income/expenses, and the net result from financial instruments in accordance with IAS 39).





Macroeconomic overview

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 85-87, 98-99, 107, 118-119, 123, 129, 133 and 136-137 of the Annual Report 2014.

The recovery of the global economy continues to show a mixed picture in the industrial nations and emerging economies. The International Monetary Fund forecasts global economic growth of 3.3% in the year 2015 – slightly below the previous year’s level. Hence, economic growth remains inconsistent and is subject to certain risks, outlined below.

For instance, at present it is impossible to predict the impact of the interest rate turnaround in the US on asset prices in industrial countries, as well as on capital flows in major emerging economies.

The current economic environment in China might also lead to serious burdens for the international financial sector:

• Chinese property prices are falling significantly. • Chinese companies and regional public-sector entities are

highly indebted.• Following the long rally on Chinese equity markets, recent

turbulence at the beginning of August 2015 has led to signifi-cant losses.

In contrast, Greece’s persistent financial troubles pose a lower risk to the European economy.

The crude oil price (Brent Crude) hit a trough at the beginning of 2015: it slightly recovered during the first half of the year, moving in a range between US$55 and US$70 per barrel. Looking at the most recent oil market developments, there is no discernible trend towards higher prices.

On the other hand, constructive trends are evident in the industrial nations. The US economy is likely to show positive momentum, with GDP growth projected to be 2.5% in 2015. In this context, domestic demand remains the biggest contributor to US GDP growth which is being supported by lower oil prices and continued low interest rate policy of the US Federal Reserve. Although interest rates are expected to rise in the medium term, the economy appears to have gained stability at present.

Euro-zone GDP growth is projected to remain positive, albeit at a low level, with the 2015 growth rate forecast at 1.5%. This raises the risk of a drawn-out phase of weak growth and low inflation. The difficult political climate between various member countries, however, holds significant risks for the region’s overall economic growth.

Developments on the trade and transport markets have remained mixed during 2015.

Demand forecasts for the aviation and land transport markets remain positive. Airlines around the globe are reporting strong incomes, and weak oil prices should add to their profitability. In passenger and freight transport, we expect increases in transport prices, lease rates and utilisation rates across the board – in ascending order: Europe, Australia and North America.

This half-yearly financial report contains forward-looking statements, including statements concerning the future development of DVB.

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 there-fore diverge from expectations, not least as a result of fluc-tuations 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.


11Notes

Demand growth in the shipping markets will generally be positive, with a cyclic recovery expected to take hold in some key con-suming markets – but also with an expected slowdown in the previous decade’s strong demand growth for dry bulk commodities. Oversupply remains the current key issue in most sectors, and additional newbuildings can weigh down the nascent recovery in fleet utilisation expected in some sectors within the next one or two years. Excess shipyard capacity remains a challenge. The tanker market is currently experiencing a short-term upswing, benefiting from the drop in oil prices. This leads to tankers being used as floating storage. As a result, demand for crude oil tankers is increasing more strongly than would be supported by funda-mentals.

At the same time, spending for exploration and production in offshore markets has and is being cut, because of the low oil prices. Although E&P spending in the offshore segment was expected to slow down, the extent of the cuts is greater than expected. Demand for all types of offshore assets in 2015 is thus likely to fall short of projections. In regions with relatively high break-even points in crude oil exploration – such as the North Sea, West Africa and Brazil – demand is expected to see a more pronounced decline than in regions where location costs are lower, such as the Middle East.

Trend outlook and summary

DVB remains cautiously optimistic for the development of its operating business in Transport Finance during the second half of the year. After all, experience shows that the Bank is usually able to increase profit contributions from its financing and advi-sory business with the international transport sector during the second half of the year. Risk costs will remain at the levels seen in previous years for the time being, due to the prevailing difficult situation in some segments of the shipping market.

In contrast to the previous guidance for the consolidated net income to exceed the previous year’s level, taking the burden by the non-recurring effect on the net other operating income/expenses due to the unscheduled write-down mentioned into account, it is fair to assume that the Bank’s consolidated net income for 2015 will in fact be lower year-on-year.

Report on expected developments

InterIm management repor t INTERIM F INANcIAl STATEMENTS RE VIE W REPORT FuRThER INFORMATION


12

No risks which would jeopardise DVB’s continued existence are expected to materialise during the remainder of the 2015 financial year. Please refer to the report on opportunities and risks on pages 142–166 of the Annual Report 2014, 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.

Report on opportunities and risks


13Notes

Full reference is made in this respect to the information provided on page 234, note 64.4 of the Annual Report 2014. As part of DVB’s funding operations, the Bank’s securitised liabilities vis-à-vis DZ BANK AG were virtually unchanged as at 30 June 2015, at €7,473.0 million (31 December 2014: €7,798.7 million). At the reporting date, the Bank had no securities repurchase agreements

in place where DZ BANK AG is the borrower (31 December 2014: five transactions recognised in loans and advances 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 2015 which might have materially affected the financial position or financial performance of DVB.

Report on major related party transactions



14

Interim financial statements

15 Condensed income statement

15 Earnings per share1)

16 Condensed statement of comprehensive income

17 Statement of financial position

18 Condensed statement of changes in equity

18 Condensed cash flow statement

19 Segment report1)

20 – 32 Notes

1) These tables are part of the Notes.

€ mn160

140

120

100

80

60

40

20

0

–20

2011 2012 2013 2014 2015

Shipping Finance Aviation Finance Offshore Finance Land Transport Finance Total Transport Finance results

1) Before IAS 39 and before allocation of general costs

Transport Finance results1) as at 30 June

60.9

29.0

46.642.9

–2.2

55.7 57.2 56.7 54.3 61.9

14.0 18.3

29.7 21.5

18.9

10.8 9.9 10.614.1 16.8

141.4

114.4

143.6

132.8

95.4


15Notes

INTERIM MANAGEMENT REPORT INTERIM FINANCIAL STATEMENTS RE VIE W REPORT FURTHER INFORMATION

€ mn

Note

1 Jan 2015 – 30 Jun 2015

1 Jan 2014 – 30 Jun 2014

%

Net interest income (3) 92.5 105.0 –11.9

Allowance for credit losses (4) –39.7 –27.9 42.3

Net interest income after allowance for credit losses 52.8 77.1 –31.5

Net fee and commission income (5) 52.3 51.0 2.5

Results from investments in companies accounted for using the equity method 3.1 0.3 –

General administrative expenses (6) –88.2 –87.7 0.6

Net other operating income/expenses (7) –36.8 2.3 –

Consolidated net income before IAS 39, bank levy, BVR1) and taxes -16.8 43.0 –

Net result from financial instruments in accordance with IAS 39 (8) 75.0 2.4 –

Consolidated net income before bank levy, BVR1) and taxes 58.2 45.4 28.2

Expenses for the bank levy and the BVR1) Deposit Guarantee Scheme –14.9 –4.0 –

Consolidated net income before taxes 43.3 41.4 4.6

Income taxes –13.2 –9.7 36.1

Consolidated net income 30.1 31.7 –5.0

thereof: consolidated net income attributable to non-controlling interests 0.0 0.0 –

thereof: consolidated net income attributable to shareholders of DVB Bank SE 30.1 31.7 –5.0

Earnings per share

Average number of shares issued 45,696,269 45,621,519 0.2

Basic earnings per share (€) 0.66 0.69 –4.3

Diluted earnings per share (€) 0.66 0.69 –4.3

1) National Association of German Co-operative Banks (Bundesverband der Deutschen Volksbanken und Raiffeisenbanken – BVR)

Condensed income statement


16

€ mn

1 Jan 2015 – 30 Jun 2015

1 Jan 2014 – 30 Jun 2014

%

Consolidated net income 30.1 31.7 –4.3

Other comprehensive income reclassified subsequently to profit or loss 22.1 –1.5 –

Revaluation of AfS financial instruments 20.4 1.6 –

thereof: changes in fair value 19.7 3.3 –

thereof: reclassifications to the income statement 0.7 –1.7 –

Cash flow hedges 2.9 –4.7 –

thereof: changes in fair value –19.1 –0.5 –


Net investment hedges –16.0 –3.7 –

thereof: changes in fair value –18.4 –2.7 –


Currency translation 10.2 3.1 –

Deferred taxes 4.6 2.2 –

Other comprehensive income from associates and joint ventures

reclassified subsequently to profit or loss 1.3 – –

Revaluation of AfS financial instruments 2.0 – –

thereof: changes in fair value 2.0 – –

thereof: reclassifications to the income statement – – –

Cash flow hedges 0.0 – –

thereof: changes in fair value 0.0 – –

thereof: reclassifications to the income statement – – –

Currency translation –0.7 – –

Other comprehensive income not reclassified subsequently to profit or loss –1.5 –0.2 –

Revaluation of defined benefit plans –2.1 –0.3 –

Deferred taxes 0.6 0.1 –

Total comprehensive income 52.0 30.0 73.3

thereof: total comprehensive income attributable to non-controlling interests 0.0 0.0 –

thereof: total comprehensive income attributable to shareholders of DVB Bank SE 52.0 30.0 73.3

Condensed statement of comprehensive income


17Notes


Assets (€ mn) Note 30 Jun 2015 31 Dec 2014 %

Cash and balances with the central bank 68.4 175.5 –61.0

Loans and advances to banks (9) 954.2 1,491.6 –36.0

Loans and advances to customers (10) 22,547.5 20,633.0 9.3

Allowance for credit losses (11) –232.4 –218.9 6.2

Positive fair values of derivative hedging instruments 323.4 416.7 –22.4

Trading assets 109.5 88.2 24.1

Investment securities (12) 332.7 328.6 1.2

Investments in companies accounted for using the equity method (13) 224.6 193.4 16.1

Intangible assets (14) 101.7 100.5 1.2

Property and equipment (15) 738.8 1,087.7 –32.1

Income tax assets 98.1 99.8 –1.7

Other assets (16) 85.2 114.7 –25.7

Total 25,351.7 24,510.8 3.4

Liabilities and equity (€ mn) Note 30 Jun 2015 31 Dec 2014 %

Deposits from other banks (17) 2,950.7 3,058.5 –3.5

Deposits from customers (18) 7,190.4 7,097.0 1.3

Securitised liabilities (19) 11,692.1 11,305.8 3.4

Negative fair values of derivative hedging instruments 211.1 192.6 9.6

Trading liabilities 788.4 604.5 30.4

Provisions (20) 60.7 65.1 –6.8

Income tax liabilities 74.7 75.6 –1.2

Other liabilities (21) 121.4 187.1 –35.1

Subordinated liabilities (22) 796.9 487.2 63.6

Equity (23) 1,465.3 1,437.4 1.9

Issued share capital 116.9 116.6 0.3

Capital reserve 323.5 320.6 0.9

Retained earnings 973.7 974.6 –0.1

thereof: fund for general banking risks 82.4 82.4 –

Revaluation reserve 30.0 7.2 –

Reserve from cash flow hedges –13.9 –15.9 –12.6

Reserve from net investment hedges –19.1 –8.2 –

Currency translation reserve 23.9 14.4 66.0

Distributable profit 30.1 27.9 7.9

Non-controlling interests 0.2 0.2 –

Total 25,351.7 24,510.8 3.4

Statement of financial position


18

€ mn

1 Jan 2015 – 30 Jun 2015

1 Jan 2014 – 30 Jun 2014

%

Equity as at 1 Jan 1,437.4 1,398.9 2.8

Consolidated net income attributable to shareholders of DVB Bank SE 30.1 31.7 –5.0

Other comprehensive income 21.9 –1.7 –

Dividend payment –27.9 –27.9 –

Changes in treasury shares 3.3 –0.4 –

Changes in consolidated group and other changes 0.5 0.1 –

Equity as at 30 Jun 1,465.3 1,400.7 4.6

€ mn

1 Jan 2015 – 30 Jun 2015

1 Jan 2014 – 30 Jun 2014

%

Cash flow from operating activities –244.5 –2,043.7 –88.0

Cash flow from investing activities –151.4 99.7 –

Cash flow from financing activities 288.8 –33.5 –

Net change in cash and cash equivalents –107.1 –1,977.5 –94.6

Cash and cash equivalents at beginning of period 175.5 2,040.5 –91.4

Cash and cash equivalents at end of period 68.4 63.0 8.6

Condensed statement of changes in equity

Condensed cash flow statement


19Notes


Segment report1)

Group

Shipping Finance

Aviation Finance

Offshore Finance

Land Transport

Finance

Investment Management

Treasury

Other

Recon- ciliation/

consolidation

€ mn 6/2015 6/2014 6/2015 6/2014 6/2015 6/2014 6/2015 6/2014 6/2015 6/2014 6/2015 6/2014 6/2015 6/2014 6/2015 6/2014 6/2015 6/2014

Net interest income 92.5 105.0 42.5 43.4 39.5 42.7 12.4 12.4 14.0 8.9 –18.7 –12.1 –18.2 –12.5 5.7 5.9 15.3 16.2

Allowance for credit losses –39.7 –27.9 –26.7 –21.8 2.9 –0.9 –0.7 –0.2 –0.2 1.2 –4.9 0.0 0.0 0.0 –6.3 –7.1 –3.8 0.9

Net interest income after allowance for credit losses 52.8 77.1 15.8 21.6 42.4 41.8 11.7 12.2 13.8 10.1 –23.6 –12.1 –18.2 –12.4 –0.6 –1.2 11.5 17.1

Net fee and commission income 52.3 51.0 16.2 17.3 20.1 12.5 7.2 9.3 2.9 4.0 –0.2 –0.5 –0.2 –0.1 6.0 6.3 0.3 2.2

Results from investments in companies accounted for using the equity method 3.1 0.3 – – – – – – – – 3.5 0.3 – – –0.4 – 0.0 0.0

Net other operating income/expenses –36.8 2.3 –34.2 4.0 –0.6 0.0 0.0 0.0 0.1 0.0 7.3 –0.2 0.0 0.0 –8.5 2.1 –0.9 –3.6

Results 71.4 130.7 –2.2 42.9 61.9 54.3 18.9 21.5 16.8 14.1 –13.0 –12.5 –18.4 –12.5 –3.5 7.2 10.9 15.7

Staff expenses –51.5 –54.8 –12.7 –14.2 –7.9 –7.3 –1.6 –2.0 –1.3 –1.3 –3.5 –4.8 –0.5 –0.7 –20.1 –20.0 –3.9 –4.5

Non-staff expenses –34.3 –30.7 –2.9 –4.2 –2.5 –1.9 –0.6 –0.6 –0.5 –0.3 –3.5 –1.8 –0.2 –0.2 –17.0 –16.8 –7.1 –4.9

Depreciation, amortisation, impairment and write-ups –2.4 –2.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 –2.3 –2.1 –0.1 0.0

General administrative expenses –88.2 –87.7 –15.6 –18.4 –10.4 –9.2 –2.2 –2.6 –1.8 –1.6 –7.0 –6.6 –0.7 –0.9 –39.4 –38.9 –11.1 –9.4

Consolidated net income before IAS 39, bank levy, BVR and taxes –16.8 43.0 –17.8 24.5 51.5 45.0 16.7 18.9 15.0 12.5 –20.0 –19.1 –19.1 –13.4 –42.9 –31.7 –0.2 6.3

Net result from financial instruments in accordance with IAS 39 75.0 2.4 –8.1 –0.5 0.1 0.0 0.0 0.1 0.0 0.0 47.8 2.4 35.1 0.2 0.0 0.0 0.1 0.2

Consolidated net income before bank levy, BVR and taxes 58.2 45.4 –25.9 24.0 51.6 45.0 16.7 19.0 15.0 12.5 27.8 –16.7 16.0 –13.2 –42.9 –31.7 –0.1 6.5

Expenses for the bank levy and the BVR Deposit Guarantee Scheme –14.9 –4.0 – – – – – – – – – – – – – – –14.9 –4.0

Consolidated net income before taxes 43.3 41.4 –25.9 24.0 51.6 45.0 16.7 19.0 15.0 12.5 27.8 –16.7 16.0 –13.2 –42.9 –31.7 –15.0 2.5

Cost/income ratio2) (%) 47.4 54.4 95.3 28.7 17.7 16.7 11.3 11.8 10.5 13.7 17.6 –65.9 – – – – – –

Return on equity3) (%) 8.7 6.5 –20.8 14.8 56.9 57.8 87.6 124.5 100.0 90.8 15.0 –12.9 – – – – – –

Lending volume4) 26,944.6 23,998.3 11,030.6 8,865.9 8,120.8 6,168.9 2,506.6 2,045.0 1,789.9 1,748.7 570.4 466.2 1,660.2 3,629.2 1,266.1 1,074.4 – –

1) Before allocation of general costs2) Excluding allowance for credit losses3) Before taxes4) According to internal management


Notes20

In the period under review, DVB did not enter into securities repurchase agreements. As at year-end 2014, DVB held five transactions structured as genuine repurchase agreements, in which the Bank acted as lender; all of these expired during the first half of 2015.

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 December 2014: 20 companies).

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 experi-ence as well as changed expectations with regard to future developments.

2 Group of consolidated companies

The group of consolidated companies changed as a result of the establishment of the following, fully consolidated companies:

• Berwick Shipping LLC, Majuro, Marshall Islands• Drem Shipping LLC, Majuro, Marshall Islands• Leith Shipping LLC, Majuro, Marshall Islands• Linton Shipping LLC, Majuro, Marshall Islands• Ocean Giant LLC, Majuro, Marshall Islands

The following newly-established companies were included in the group of consolidated companies using the equity method:

• Artemis Gas 1 Shipping LLC, Piraeus, Greece• Intermodal Investment Fund VIII LLC, Majuro, Marshall Islands

The following companies are no longer included in the scope of consolidation:

• Blue Moon Shipping Ltd, St. John’s, Antigua/Barbuda• DCAL 1 Leasing Ltd, Dublin, Ireland• DCAL 2 Leasing Ltd, Dublin, Ireland• France Maritime LLC, Majuro, Marshall Islands• Green Mountain Shipping Ltd, Willemstad, Curaçao• Intermodal Investment Fund VI LLC, Majuro, Marshall Islands• Mediterra LLC, Majuro, Marshall Islands• NFC Shipping Fund B LLC, Majuro, Marshall Islands• TEU Asset Company N.V., Willemstad, Curaçao• Tubbataha Aviation Ltd, George Town, Cayman Islands• Yellow Moon Shipping Ltd, St. John’s, Antigua/Barbuda

General notes

1 Summary of material accounting policies applied

The present interim consolidated financial statements for the period ended on 30 June 2015 have been prepared in accordance with the International Financial Reporting Standards (IFRS), as adopted by the European Union (EU). 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 pre-sented 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 state-ments as at 31 December 2014, with the following exceptions.

The following amendments to accounting standards and new interpretations have been taken into account in the interim financial statements:

• IFRIC 21 – Levies• Improvements to the International Financial Reporting

Standards, period 2011–2013

The interpretation IFRIC 21 – Levies clarifies when obligations regarding levies that are imposed by government agencies and are not within the scope of another specific standard have to be reported in the financial statements. The activity which triggers the payment of a levy pursuant to applicable legislation is iden-tified as the obligating event that gives rise to the recognition of a liability. Economic compulsion and the going concern principle do not represent an obligating event. The standard is required to be applied for companies within the EU for business years beginning on or after 17 June 2014.

To enhance the meaningfulness of the Notes, and given that expenses for the bank levy and the BVR Deposit Guarantee Scheme are no longer amortised, DVB has added the following new lines to its income statement:

• Consolidated net income before bank levy, BVR, and taxes• Expenses for the bank levy and the BVR Deposit Guarantee

Scheme

In the previous year, these expenses were still amortised and reported in the general administrative expenses.


21Notes


5 Net fee and commission income

6 General administrative expenses

7 Net other operating income/expenses

8 Net result from financial instruments in accordance with IAS 39

The following companies accounted for using the equity method are no longer included in the scope of consolidation:

• Intermodal Investment Fund II LLC, Majuro, Marshall Islands

The following company previously accounted for at cost is now included using the equity method:

• Gram Car Carriers Holdings Pte Ltd, Singapore

3 Net interest income

4 Allowance for credit losses

€ mn

1 Jan 2015 – 30 Jun 2015

1 Jan 2014 – 30 Jun 2014

%

Interest income

from lending and money

market transactions 400.2 381.1 5.0

from bonds and other

fixed-income securities 6.3 2.4 –

from finance leases 8.1 8.2 –1.2

Current income

from operating leases 99.6 41.1 –

from equity investments and

other investment securities 2.6 1.9 36.8

Interest income 516.8 434.7 18.9

Interest expenses

for deposits –169.6 –139.1 21.9

for securitised liabilities –136.9 –131.7 3.9

for subordinated liabilities –11.7 –7.4 58.1

from operating leases –106.1 –51.5 –

Interest expenses –424.3 –329.7 28.7

Net interest income 92.5 105.0 –11.9

€ mn

1 Jan 2015 – 30 Jun 2015

1 Jan 2014 – 30 Jun 2014

%

Additions –69.2 –49.0 41.2

Reversals 34.8 25.1 38.6

Direct write-offs –5.8 –5.6 3.6

Recoveries on loans and

advances previously written off 0.5 1.6 –68.8

Total –39.7 –27.9 42.3

€ mn

1 Jan 2015 – 30 Jun 2015

1 Jan 2014 – 30 Jun 2014

%

Fee and commission income

from guarantees

and indemnities 2.3 2.1 9.5

from the lending business 53.1 42.7 24.4

Other fee and

commission income 3.4 8.6 –60.5

Fee and commission income 58.8 53.4 10.1

Fee and

commission expenses –6.5 –2.4 –

Net fee and

commission income 52.3 51.0 2.5

€ mn

1 Jan 2015 – 30 Jun 2015

1 Jan 2014 – 30 Jun 2014

%

Staff expenses –51.5 –54.8 –6.0

Non-staff expenses –34.3 –30.7 11.7

Depreciation, amortisation,

impairment and write-ups –2.4 –2.2 9.1

Total –88.2 –87.7 0.6

€ mn

1 Jan 2015 – 30 Jun 2015

1 Jan 2014 – 30 Jun 2014

%

Other operating income 30.2 15.6 93.6

Other operating expenses –67.0 –13.3 –

Total –36.8 2.3 –

€ mn

1 Jan 2015 – 30 Jun 2015

1 Jan 2014 – 30 Jun 2014

%

Trading result 7.4 3.6 –

Hedge result 7.1 –3.6 –

Result from the application of

the fair value option – – –

Result from derivatives entered

into without intention to trade 13.5 –0.3 –

Result from

investment securities 47.0 2.7 –

Total 75.0 2.4 –


Notes22

9 Loans and advances to banks

10 Loans and advances to customers

DVB does not hold any claims against Greece, Ireland, Portugal, Spain or 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.

8.1 Trading result

8.2 Hedge result (hedge accounting)

€ mn

1 Jan 2015 – 30 Jun 2015

1 Jan 2014 – 30 Jun 2014

%

Result from derivative

hedging instruments –199.8 269.4 –

Result from hedged items 205.4 –272.9 –

Result from remeasurement 5.6 –3.5 –

Ineffectiveness of

cash flow hedges 1.5 –0.1 –

Total 7.1 –3.6 –

€ mn 30 Jun 2015 31 Dec 2014 %

Loans and advances 952.8 596.8 59.7

thereof: payable on demand 952.8 596.8 59.7

thereof: with a limited term – 0.0 –

Money market transactions 1.0 894.7 –99.9

thereof: payable on demand – – –

thereof: with a limited term 1.0 894.7 –99.9

Other loans and

advances to banks 0.4 0.1 –

Total 954.2 1,491.6 –36.0

German banks 445.0 754.8 –41.0

Foreign banks 509.2 736.8 –30.9

Total 954.2 1,491.6 –36.0

€ mn 30 Jun 2015 31 Dec 2014 %

Loans and advances 22,529.5 20,610.2 9.3


thereof: with a limited term 22,152.0 20,357.5 8.8

Other loans and

advances to customers 18.0 22.8 –21.1

Total 22,547.5 20,633.0 9.3

German customers 1,031.3 1,039.8 –0.8

Foreign customers 21,516.2 19,593.2 9.8

Total 22,547.5 20,633.0 9.3

€ mn

1 Jan 2015 – 30 Jun 2015

1 Jan 2014 – 30 Jun 2014

%

Trading result

from derivatives –0.6 –0.3 –

from foreign

currency transactions 7.7 3.1 –

from interest and

dividend payments 0.3 0.8 –62.5

Other – 0.0 –

Total 7.4 3.6 –


23Notes


11 Allowance for credit losses

Interest income arises from unwinding impaired loans and advances to customers, recognised at their present value as specified in IAS 39.AG93.

12 Investment securities

DVB does not hold any investment securities from Greece, Ireland, Portugal, Spain or Italy.

13 Investments in companies accounted for using the equity method

14 Intangible assets

15 Property and equipment

Specific allowance Portfolio-based allowance Total€ mn 30 Jun 2015 31 Dec 2014 30 Jun 2015 31 Dec 2014 30 Jun 2015 31 Dec 2014

Balance at 1 January 183.9 159.5 35.0 45.0 218.9 204.5

Additions 59.0 133.5 10.2 13.7 69.2 147.2

Utilisation –25.5 –71.7 – – –25.5 –71.7

Reversals –20.2 –56.4 –14.6 –27.1 –34.8 –83.5

Interest income –11.1 – – – –11.1 –

Changes resulting from

exchange rate fluctuations 13.1 19.0 2.6 3.4 15.7 22.4

Balance as at the reporting date 199.2 183.9 33.2 35.0 232.4 218.9

€ mn 30 Jun 2015 31 Dec 2014 %

Bonds and other

fixed-income securities 299.2 284.9 5.0

thereof: bonds and notes 299.2 284.9 5.0

Equities and other

non-fixed-income securities 27.9 14.1 97.9

Equity investments 5.6 29.6 –81.1

Total 332.7 328.6 1.2

€ mn 30 Jun 2015 31 Dec 2014 %

Investments in associates 172.3 147.8 16.6

Interests in joint ventures 52.3 45.6 14.7

Total 224.6 193.4 16.1

€ mn 30 Jun 2015 31 Dec 2014 %

Goodwill 95.0 95.0 –

Other intangible assets 6.7 5.5 21.8

Total 101.7 100.5 1.2

€ mn 30 Jun 2015 31 Dec 2014 %

Land and buildings 0.0 0.0 –

Operating and office equipment 7.8 7.7 1.3

Assets held under

operating leases 436.6 811.2 –46.2

Other property and equipment 294.4 268.8 9.5

Total 738.8 1,087.7 –32.1


Notes24

16 Other assets

In July 2010, DVB provided a US$175 million pre-delivery pay-ment 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 pur-chase agreement with Cosco, a group of shipyards, for delivery of a turnkey drillship. The shipyard company is building this sixth- generation drillship at its shipyard in Dalian, China.

It did not deliver the ship as agreed by 15 April 2013. In addition, serious technical problems occurred during the ship’s construction. The shipyard revised the estimated delivery date for the ship (31 March 2014).

As a result of the substantial delay and the uncertainty surround-ing 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 a unilateral breach of contract under English law on the part of the shipyard, as well as on the basis of a contractual termination.

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 Dalian Deepwater Developer’s company lawyers 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.

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.

On 7 February 2014, the shipyard filed a written defence and counterclaim rejecting any obligations in addition to the payments already made.

In a preliminary hearing before the arbitration court on 15 July 2014, a positive decision was made as to the termination of the purchase agreement, pursuant to which the damage resulting from the termination of the purchase agreement is not limited to the payment already made by the shipyard in January 2014 (US$116.9 million). The main trial before the arbitration court took place on 23 February 2015. The final drafts were submitted to the arbitration court by the shipyard and Dalian Deepwater Developer by 27 March 2015.

In contrast to the result of the hearing on 15 July 2014, the arbitration ruling delivered on 7 August 2015 rejected a claim for damages by Dalian Deepwater Developer for consequential losses against the defending shipyard, in excess of the instalments already received. The residual claim for damages of €36.4 million (US$40.8 million), which had been carried under ”Other assets” in DVB Bank SE’s consolidated statement of financial position was therefore fully written down as at 30 June 2015.

17 Deposits from other banks

€ mn 30 Jun 2015 31 Dec 2014 %

Receivables from taxes

not related to income 2.0 4.6 –56.5

Advance payments

and prepaid expenses 2.6 2.7 –3.7

Miscellaneous other assets 80.6 107.4 –25.0

Total 85.2 114.7 –25.7

€ mn 30 Jun 2015 31 Dec 2014 %

Loans and advances 2,423.1 2,855.8 –15.2

thereof: payable on demand 104.2 162.4 –35.8

thereof: with a limited term 2,318.9 2,693.4 –13.9

Money market transactions 527.6 202.7 –


thereof: with a limited term 527.6 202.7 –

Total 2,950.7 3,058.5 –3.5

German banks 2,650.7 2,686.6 –1.3

Foreign banks 300.0 371.9 –19.3

Total 2,950.7 3,058.5 –3.5


25Notes


18 Deposits from customers

19 Securitised liabilities

During the first half of 2015, the Bank securitised liabilities with a nominal value of €1,972.3 million and a term of three to ten years. Bearer bonds were due in the nominal amount of €1,606.0 million. €7,478.4 million of securitised liabilities related to transactions with the DZ BANK Group.

20 Provisions

21 Other liabilities

22 Subordinated liabilities

23 Equity

Net retained profit of DVB Bank SE for the business year 2014 amounted to €27,880,422.00. On 25 June 2015, 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.

€ mn 30 Jun 2015 31 Dec 2014 %

Loans and advances 7,171.2 7,058.6 1.6


thereof: with a limited term 6,582.4 6,507.5 1.2

Money market transactions 6.0 30.3 –80.2


thereof: with a limited term 6.0 30.3 –80.2

Other deposits from customers 13.2 8.1 63.0

Total 7,190.4 7,097.0 1.3

German customers 6,518.1 6,398.4 1.9

Foreign customers 672.3 698.6 –3.8

Total 7,190.4 7,097.0 1.3

€ mn 30 Jun 2015 31 Dec 2014 %

Ship covered bonds 544.9 492.1 10.7

Bearer bonds 11,147.2 10,813.7 3.1

Total 11,692.1 11,305.8 3.4

€ mn 30 Jun 2015 31 Dec 2014 %

Provisions for

pension obligations 23.5 21.6 8.8

Provisions for early

and partial retirement plans 0.3 0.9 –66.7

Other provisions 36.9 42.6 –13.4

Total 60.7 65.1 –6.8

€ mn 30 Jun 2015 31 Dec 2014 %

Other tax liabilities 2.2 0.8 –

Miscellaneous other liabilities 119.2 186.3 –36.0

Total 121.4 187.1 –35.1

€ mn 30 Jun 2015 31 Dec 2014 %

Subordinated promissory

note loans 409.0 261.4 56.5

Subordinated bearer bonds 387.8 225.8 71.7

Other subordinated capital 0.1 0.0 –

Total 796.9 487.2 63.6


Notes26

Some of the investment securities available for sale are meas-ured 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 2015, gains from the disposal of financial assets measured at cost were recognised in profit or loss in the amount of €47.2 million (31 December 2014: €0.0 million).

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.

30 Jun 2015 31 Dec 2014 € mn

Carrying amount

Fair value Carrying amount

Fair value

Financial assets held for trading 109.5 109.5 88.2 88.2

thereof: trading assets 109.5 109.5 88.2 88.2

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 323.4 323.4 416.7 416.7

thereof: positive fair values of derivative hedging instruments 323.4 323.4 416.7 416.7

Available-for-sale financial assets 323.2 323.2 286.7 286.7

thereof: investment securities 323.2 323.2 286.7 286.7

Financial assets measured at fair value 756.1 756.1 791.6 791.6

Loans and receivables 23,059.8 23,934.4 21,786.2 22,288.8

thereof: cash and balances with the central bank 68.4 68.4 175.5 175.5

thereof: loans and advances to banks 954.2 954.2 1,491.6 1,491.6

thereof: loans and advances to customers 22,037.2 22,911.8 20,119.0 20,621.7

thereof: investment securities – – – –

Available-for-sale financial assets 9.5 9.5 41.9 41.9

thereof: investment securities 9.5 9.5 41.9 41.9

Other assets 66.3 66.3 61.5 61.5

Financial assets measured at amortised cost 23,135.6 24,010.2 21,889.6 22,392.2

Finance leases 277.9 261.6 295.1 286.5

thereof: loans and advances to customers 277.9 261.6 295.1 286.5

Other financial assets 277.9 261.6 295.1 286.5


27Notes


25 Derivatives

30 Jun 2015 31 Dec 2014 € mn

Carrying amount

Fair value Carrying amount

Fair value

Financial liabilities held for trading 788.4 788.4 604.5 604.5

thereof: trading liabilities 788.4 788.4 604.5 604.5

thereof: other liabilities – – – –

Fair value option – – – –

thereof: deposits from other banks – – – –

thereof: deposits from customers – – – –

thereof: securitised liabilities – – – –

thereof: subordinated liabilities – – – –

Derivative hedging instruments 211.1 211.1 192.6 192.6

thereof: negative fair values of derivative hedging instruments 211.1 211.1 192.6 192.6

Financial liabilities measured at fair value 999.5 999.5 797.1 797.1

Deposits from other banks 2,950.7 2,964.2 3,058.5 3,084.8

Deposits from customers 7,190.4 7,100.3 7,097.0 7,081.9

Securitised liabilities 11,692.1 11,895.4 11,305.8 11,588.3

Other liabilities 78.7 78.7 114.6 114.6

Subordinated liabilities 796.9 839.3 487.2 518.0

Financial liabilities measured at amortised cost 22,708.8 22,877.9 22,063.1 22,387.5

Finance leases – – – –

thereof: deposits from customers – – – –

Other financial liabilities – – – –

Market values %30 Jun 2015 31 Dec 2014

€ mn positive negative positive negative positive negative

Interest rate products 371.8 253.8 472.2 243.3 –21.3 4.3

Currency-related products 61.1 745.7 32.7 553.8 86.9 34.6

Other products – – – – – –

Total 432.9 999.5 504.9 797.1 –14.3 25.4


Notes28

26 Determination of fair values of financial instruments

The fair value is the amount for which an asset could be exchanged or a liability settled between knowledgeable, willing parties in an arm’s length transaction.

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 deriva-tive financial instruments with no option components, are meas-ured using the Discounted Cash Flow Method.

The basis for deriving the discount rate is the use of currency- specific swap curves. Derivative financial instruments with option characteristics are measured using accepted option pricing models (Black-Scholes-/Black-76-Model). The measurement models use parameters that can largely be observed on the market.

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 of over-the-counter derivative financial instruments is measured using the net risk exposure, using the exception provided in IAS 13.48. In a second step, credit risk exposure from derivative financial instruments is recorded after determin-ing 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 eco-nomic loss rates as well as probabilities of default matching the terms of the instruments.

The participation in Wizz Air Holdings Plc was reclassified from “assets measured at amortised cost” (Level 3) to “assets meas-ured at fair value” (Level 1) as part of the initial public offering at the London Stock Exchange. Total acquisition costs of the reclassified participation amount to €1.7 million.

Determination of fair values of financial instruments (€ mn)

Level 1 Level 2 Level 330 Jun 2015 31 Dec 2014 30 Jun 2015 31 Dec 2014 30 Jun 2015 31 Dec 2014

Loans and advances to banks – – – – – –

Loans and advances to customers – – – – – –

Trading assets – – 109.5 88.2 – –

Positive fair values of

derivative hedging instruments – – 323.4 416.7 – –

Investment securities 323.2 286.7 – – – –

Financial assets measured at fair value 323.2 286.7 432.9 504.9 – –

Deposits from other banks – – – – – –

Deposits from customers – – – – – –

Trading liabilities – – 788.4 604.5 – –

Negative fair values of

derivative hedging instruments – – 211.1 192.5 – –

Subordinated liabilities – – – – – –

Financial liabilities measured at fair value – – 999.5 797.0 – –


29Notes


Determination of fair values of the financial instruments measured at amortised cost (€ mn)

Level 1 Level 2 Level 330 Jun 2015 31 Dec 2014 30 Jun 2015 31 Dec 2014 30 Jun 2015 31 Dec 2014

Loans and receivables – – 68.4 175.5 23,866.0 22,113.3

thereof: cash and balances

with the central bank – – 68.4 175.5 – –

thereof: loans and advances to banks – – – – 954.2 1,491.6

thereof: loans and advances to customers – – – – 22,911.8 20,621.7

thereof: investment securities – – – – – –

Financial assets available for sale – – – – 9.5 41.9

thereof: investment securities – – – – 9.5 41.9

Other assets – – – – 66.3 61.5

Financial assets measured

at amortised cost – – 68.4 175.5 23,941.8 22,216.7

Finance leases – – – – 261.6 286.5

thereof: loans and advances to customers – – – – 261.6 286.5

Other financial assets – – – – 261.6 286.5

Deposits from other banks – – 2,964.2 3,084.8 – –

Deposits from customers – – 7,100.3 7,081.9 – –

Securitised liabilities – – 11,895.4 11,588.3 – –

Other liabilities – – – – 78.7 114.6

Subordinated liabilities – – 839.3 518.0 – –

Liabilities measured at amortised cost – – 22,799.2 22,272.9 78.7 114.6

Finance leases – – – – – –

thereof: deposits from customers – – – – – –

Other financial liabilities – – – – – –


Notes30

27 Financial assets and liabilities not offset

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 €0.7 million in the first half of 2015 (31 December 2014: €1.3 million). Taking currency translation effects of €–0.6 million (31 December 2014: €–0.8 million) into account, the closing balance was €6.3 million (31 December 2014: €6.4 million).

Amounts with unrecognised offsetting agreements

Gross amount of financial instruments

not offset

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

€ mn30 Jun

2015

31 Dec

2014

30 Jun

2015

31 Dec

2014

30 Jun

2015

31 Dec

2014

30 Jun

2015

31 Dec

2014

30 Jun

2015

31 Dec

2014

30 Jun

2015

31 Dec

2014

Positive fair values

of derivative financial

instruments 874.5 1,018.6 –441.6 –513.8 432.9 504.8 –190.8 –224.3 –72.6 –92.5 169.5 188.0

Negative fair values

of derivative financial

instruments 1,076.6 818.7 –77.1 –21.6 999.5 797.1 –190.8 –224.3 –720.6 –443.5 88.1 129.3


31Notes


Other disclosures

29 Financial guarantee contracts, contingent liabilities and other commitments

€ mn 30 Jun 2015 31 Dec 2014 %

Financial guarantee contracts

from guarantees 300.8 268.9 11.9

Contingent liabilities from

irrevocable loan commitments 1,942.1 1,704.2 14.0

Other commitments 23.9 23.9 –

thereof: within one year 7.2 6.8 5.9

thereof: within one to

five years 16.4 16.1 1.9

thereof: five years or more 0.3 1.0 –70.0

Total 2,266.8 1,997.0 13.5


32 Notes

Responsibility statement

To the best of our knowledge, and in accordance with the appli-cable 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 Bank Group, and the interim management report of the DVB Bank 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 Bank Group for the remaining months of the financial year.

Frankfurt/Main, 11 August 2015DVB Bank SE

The Board of Managing Directors

Ralf Bedranowsky CEO & Chairman of the Board of Managing Directors

Bertrand Grabowski Member of the Board of Managing Directors

L. H. (Bart) Veldhuizen Member of the Board of Managing Directors


33NotesReview report

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 provi-sions of the WpHG applicable to interim group management reports.

Eschborn, Frankfurt/Main, 11 August 2015Ernst & Young GmbHWirtschaftsprüfungsgesellschaft

LöskenWirtschaftsprüfer(German Public Auditor)

StapelWirtschaftsprüfer(German Public Auditor)

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 2015 to 30 June 2015, 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 report-ing 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 state-ments 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.

INTERIM MANAGEMENT REPORT INTERIM F INANCIAL STATEMENTS RE VIE W REPORT FURTHER INFORMATION

DVB worldwide

Further information

34 DVB worldwide

36 Imprint

Piräus

Curaçao

New York

London

Oslo

Singapore

Tokyo

EUROPEAMERICA ASIA/PACIFIC

Frankfurt/Main

Zurich

Hamburg

Athens

Shipping Finance

Aviation Finance

Offshore Finance

Land Transport Finance

Amsterdam


35Notes

Head office Frankfurt/MainDVB Bank SEPlatz der Republik 660325 Frankfurt/Main, GermanyPhone +49 69 9750 40, Fax +49 69 9750 4444 Europe AmsterdamDVB Bank SEAmsterdam BranchWTC Schiphol, Tower F, 6th FloorSchiphol Boulevard 2551118 BH Schiphol, The NetherlandsPhone +31 88 3997 900, Fax +31 88 3998 301

AthensDVB Bank SERepresentative Office Greece3, Moraitini Street &1, Palea Leof. Posidonos, Bldg. K4Delta Paleo Faliro175 61 Athens, GreecePhone +30 210 4557 400, Fax +30 210 4557 420

HamburgDVB Bank SEHamburg OfficeBallindamm 620095 Hamburg, GermanyPhone +49 40 3080 040, Fax +49 40 3080 0412

LondonDVB Bank SE London BranchPark House, 6th Floor16–18 Finsbury CircusLondon, EC2M 7EB, United KingdomPhone +44 20 7256 4300, Fax +44 20 7256 4450

OsloDVB Bank SENordic BranchHaakon VII’s gate 10161 Oslo, NorwayPhone +47 2 3012 200, Fax +47 2 3012 250

ZurichITF International Transport Finance Suisse AGWasserwerkstrasse 128006 Zurich, SwitzerlandPhone +41 44 3656 100, Fax +41 44 3656 200

North and South America CuraçaoDVB Bank America N.V.Zeelandia Office ParkKaya W.F.G. Mensing 14Willemstad, CuraçaoPhone +599 9 4318 700, Fax +599 9 4652 366

New York DVB Transport (US) LLC Representative Office of DVB Bank SE609 Fifth AvenueNew York, NY 10017-1021, USAPhone +1 212 588 8864, Fax +1 212 588 8936

DVB Capital Markets LLC 609 Fifth AvenueNew York, NY 10017-1021, USAPhone +1 212 858 2624, Fax +1 212 588 0424 Asia SingaporeDVB Bank SESingapore Branch77 Robinson Road # 30-02Singapore 068896Phone +65 6511 3433, Fax +65 6511 0700

DVB Group Merchant Bank (Asia) Ltd77 Robinson Road # 30-02Singapore 068896Phone +65 6511 3433, Fax +65 6511 0700

Tokyo DVB Transport Finance LtdTokyo Branch The Imperial Hotel Tower, 14th Floor (A-2)1-1, Uchisaiwaicho 1-chome, Chiyoda-kuTokyo 100-0011, JapanPhone +81 3 3593 7700, Fax +81 3 3593 7860 www.dvbbank.com e-mail: [email protected]

DVB worldwide

INTERIM MANAGEMENT REPORT INTERIM F INANCIAL STATEMENTS RE VIE W REPORT FURTHER INFORMATION


36

Cover page photosShipping FinanceOdfjell SE, Bergen, Norway

Aviation FinanceBert van Leeuwen, DVB Bank SE, Amsterdam, The Netherlands

Offshore FinanceHarald M. Valderhaug, Skjongholmen, Norway

Land Transport FinanceWouter Radstake, DVB Bank SE, Frankfurt/Main, Germany

The Half-Yearly Finacial Report 2015 is published in English and German. It is available as PDF file on our webpage www.dvbbank.com > Investors > Publications > Financial reports.

After scanning this QR code with your smartphone,you will have direct access to our website.

DVB Bank SEPlatz der Republik 660325 Frankfurt/Main, Germany

Elisabeth WinterHead of Group Corporate CommunicationsManaging DirectorPhone +49 69 9750 4329

Lisa Boose-KirwelGroup Corporate CommunicationsManager Investor RelationsPhone +49 69 9750 4435

Sabine SchliebenGroup Corporate CommunicationsManager Investor & Online RelationsPhone +49 69 9750 4449

Design realisationStudio Oberländer GmbH, Frankfurt/Main, Germany

Imprint

Financial calendar 2015/2016

12 November 2015Publication of the Interim Management Statementduring the second half of 2015(for the first nine month, ending on 30 September 2015)

4 December 2015Publication of the 14th Declaration of Compliance for 2015/2016

25 February 2016Annual Accounts Press and Analysts’ ConferenceFrankfurt/Main

23 June 2016Annual General MeetingFrankfurt/Main

Date post:	19-Aug-2015
Category:	Investor Relations
Upload:	dvb-bank-se
View:	29 times
Download:	0 times