DVB Bank, one of the leading financiers to the international transport sector, today posted a decline of almost 12 percent its net income for 2013 as it made record loss provisions for loans to the crisis-hit maritime industry, including container shipping.
The German bank’s consolidated net income after taxes fell to €110.2 million ($152 million) from €124.9 million ($172.4 million) in 2012.
The Frankfurt-based bank blamed most the decline in profit on the “significant” non-recurring impact of the sale of a stake in TES Holdings, a Wales-based aero engine specialist, in the previous year.
“Due to the prevailing crisis in some maritime shipping segments,” allowances for credit loss grew to a record €87.1 million from €70.7 million a year earlier.
The bank also incurred €23.7 million in additional expenses for ships that it held.
“We are cautiously optimistic for the 2014 business year,” CEO Wolfgang Driese said. “In fact, we are possibly somewhat more optimistic than last year.”
But Driese sounded a note of caution over the outlook for shipping. “We have maintained our projections for risk costs at the level of 2012 and 2013, reflecting our expectation that the shipping segments under stress — container carriers, bulk carriers and crude oil tankers — will not recover from the trough reached before 2015, with a slow recovery afterwards.”
DVB signed 173 new loans worth €4.7 billion to transport companies in 2013, up from 158 deals worth €4.6 billion in 2012.
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