NIBC H1 2014 shows underlying growth

• H1 2014 EUR 27 million profit equals H1 2013 profit, excluding SNS levy of EUR 12 million in H1 2014.
• H1 2014 net interest income increased by more than 40% to EUR 100 million (H1 2013: EUR 71 million), driven by improved funding conditions.
• Further expansion of footprint in Germany, our second home market, with acquisition of Gallinat-Bank.
• Corporate Banking: growing demand from new and existing clients.
• Consumer Banking: retail savings and customer demand for new mortgages show healthy growth, demonstrating clients’ confidence in NIBC Direct products.
• Capital position remains strong with Common Equity Tier-1 ratio of 16.3% (16.5% in H1 2013).

Paulus de Wilt, CEO of NIBC Bank:

“We are seeing the first signs of improvements in the economic climate reflected in our H1 2014 results. Impairments are lower and repayments on our corporate loan portfolio remain stable and NIBC’s business performance is showing healthy underlying growth. Our first-half net profit would have equalled H1 2013’s EUR 27 million were it not for the EUR 12 million net expense related to the non-recurring SNS levy (full-year EUR 18 million), which reduced our net profit to EUR 15 million.

This year, we are seeing that growth in overall corporate banking deals is gaining further momentum as companies increasingly explore investment opportunities and seek financial transactions. This was also underlined in H1 by a substantial increase in new corporate lending transactions. Typical examples of our tailor-made solutions for medium-sized companies, NIBC’s core market, include deals with several clients, such as Koninklijke Van den Boer Groep, Dura Vermeer and Vroon. On the consumer side, NIBC Direct mortgages showed healthy growth. NIBC Direct savings expanded further to EUR 8.9 billion.

In Germany, our second home market, we grew both autonomously and through the acquisition of Gallinat-Bank. This demonstrates our long-term commitment to the German market and further diversifies our funding mix. Integration of Gallinat-Bank is on track.

We continued to diversify our funding with another EUR 500 million issue of our conditional pass-through covered bond, as well as various senior unsecured funding transactions. 

I am glad to have joined NIBC in April 2014 with the opportunity to help further shape the bank’s future, amid the changing financial markets and banking landscape. In coming months, we will focus on identifying the actions required to ensure sustainable growth as an entrepreneurial bank. Our sector expertise and structuring knowledge will remain key to supporting clients in achieving their goals.”