NIBC Bank underlying net profit in 2014

Continued underlying growth driven by strong demand from both corporate and consumer clients.
 

• Strong origination growth of 93% drives increase of corporate loan portfolio of 19%
• Successful return of NIBC Direct to the Dutch mortgage market with over EUR 1 billion of production; retail savings grow by EUR 0.6 billion
• Interest income grows 56%, net fee income up 59%
• Reported net profit up 9% after resolution levy
• Cost-income ratio improves from 60% to 50%; Leverage ratio of 7%
• S&P’s Outlook on NIBC’s BBB- rating improved to stable

Paulus de Wilt, Chief Executive Officer of NIBC:
“After an encouraging first half-year, our business performance continued to improve driven by new loans to corporate clients at nearly twice the level of 2013, and by strong demand for NIBC Direct mortgages and savings by retail clients. Production of NIBC-branded mortgages exceeded EUR 1 billion. Underlying net profit was up 91% to EUR 42 million, before the one-off SNS levy of EUR 18 million.

Business growth was well spread over the bank’s different key geographic segments in which NIBC operates. In Germany, where we established NIBC Deutschland AG after our takeover of Gallinat-Bank AG, our corporate banking activities are clearly increasing their contribution to NIBC’s total growth. Our corporate loan portfolio in the United Kingdom increased among others by a few landmark transactions in Infrastructure & Renewables and Leveraged Finance.

Our cost-income ratio improved from 60% to 50%, mainly driven by strong top-line growth. The bank’s capital position was solid with a fully loaded Basel III Common Equity Tier-1 ratio of 15.5%. Funding optimalisation developed further by our growth in retail savings and by gaining access to the Einlagensicherungsfond (ESF), German institutional funding, through our acquisition of Gallinat-Bank AG. We issued our conditional pass-through covered bond again in 2014 and successfully issued a public senior unsecured bond for the first time in several years in January 2015.

All in all, 2014 was an encouraging year for NIBC Bank, proving our strategy is working to achieving sustainable profit growth. I want to thank both our corporate and consumer clients who more and more entrusted us with their need for financial products and services. And of course I’m proud of our employees, who are there for our clients every day and who enable the growth the bank is currently achieving.”