DVB Bank, one of the leading players in transport finance, said its preliminary, unaudited figures revealed a 27 per cent drop in consolidated net income in 2009. The bank, which has a presence in 13 transport locations, posted consolidated net income (after taxes) of €76.1 million (Dh279m) compared with €105.2m in the year 2008.
Wolfgang F Driese, CEO and Chairman of DVB Bank, said, "The cyclical nature of transport markets is a phenomenon which we have been familiar with for a long time. The collapse in global trade – an immediate consequence of the crisis affecting financial markets and the economy – was unprecedented in both scope and velocity.
"During the first months of 2009, the crisis was exacerbated by the retreat of various banks from financing; this affected the shipping sector in particular.
"Even though we are noting signs of stabilisation in some transport market segments, in our view, the industry has not yet recovered to a sustainable trend. We succeeded in fully remedying the impact of money market distortions on DVB during the financial year under review, thanks to the co-operation of our clients, for which we are very grateful indeed - and to measures taken by our Treasury," he said.
Driese said the bank's agenda for 2010 includes a focus on pro-active risk management based on stress scenarios which allow for preventive action, which is to be taken jointly with clients, and is designed to offer sustainable solutions.
"We continue to strive for moderate growth, with interest rate margins in line with 2009. We also want to maintain commission income and cost structures at 2009 levels," said Driese.
"We have recognised that it is still too early for any relief in terms of allowance for credit losses. Assuming the absence of special burdens such as money market distortions, we look forward to being able to generate consolidated results for 2010 which will exceed our figures for 2009," he said.