German transport bank DVB's 2014 net profit fell 23 percent partly due to the cost of holding surplus cash as borrowers repaid loans faster than the lender could attract new business, Chief Executive Wolfgang Driese said. The bank, which specialises in lending to transport industries, amassed a 2 billion euros surplus as a result of early repayments last year outstripping regular redemptions. The bank in the meantime put the excess cash to work by lending to its core customer base in shipping, aircraft and land-transport. But DVB took a 13.2 million euros ($14.8 million) hit because it was temporarily unable to park the cash at a rate equal to its own borrowing costs. "But I think we have seen the peak (of early repayments)," Driese said. DVB's 2014 net earnings fell to 85 million euros, also due to lower commission income and negative effects from valuing hedging positions. Pretax return on equity shrank to 8.1 percent from 10.3 percent in the previous year. But DVB was able to set aside less money for potential bad loans. Driese said that writedowns on ship financing had started to decline as the sector emerges from the worst crisis on record. He highlighted two very different effects of the slump in oil prices on the shipping sector. "Many older, less energy efficient bulkers (vessels) are avoiding scrappage and that will weigh on charter rates. Same goes for container ships," Driese said. By contrast, oil tankers are witnessing a boom. "In anticipation of a rise in oil prices in the second half of the year, tankers are being chartered, filled with cheap oil and used as a store," he said. Commenting on recent talks by its parent DZ Bank with Japanese banks about a potential sale of a stake in DVB, Driese said that no changes in the DVB's current ownership structure were on the agenda. "There are no talks," he said.  (Reuters)