DVB Bank has reported a 10% drop in net income from its shipping finance segment to EUR42.9m ($57.3m) for the first half as shipping lending volumes also fell.

The bank's lending volume to shipping dropped from EUR9.3bn to EUR 8.8bn between the first half of 2013 and H1 2014.

Of the EUR49.1m of new allowances for credit losses, EUR32.8m were accounted for by ship finance. The bank did record EUR10.7m in allowance reversals however, and EUR0.5m in recoveries in loans that had previously been written off.

"Despite increasing signs of a bottoming out in the shipping markets, passing through the trough may well take some more time," DVB's interim report stated.

Shipping finance accounted for 43.8% of DVB's lending at 30 June 2014, with the offshore sector accounting for a further 9.9%.

Across DVB's portfolio net income fell 12.6% to EUR130.7m. A 6.4% increase in expenses to EUR91.7m left a pre-tax consolidated net income of EUR41.4m, a 37.7% decrease on H1 2013.