THE HAGUE, The Netherlands, August 30, 2011 /PRNewswire/ --
Net profit BNG EUR 154 million
BNG looks back on a positive first half of 2011. BNG's net profit rose by EUR 44 million to EUR 154 million compared to the same period in 2010. This increase in net profit was mainly caused by a higher interest result (+EUR 25 million) and a considerably less negative result financial transactions (+EUR 43 million). BNG is looking forward to the 2011 profit development with confidence.
The volume of new long-term lending decreased by EUR 1.5 billion to EUR 5.8 billion compared to the same period in 2010 and returned to a more usual level, following the historically high level in 2010. The decrease is particularly visible within the public housing sector. Housing associations refinanced significant parts of their 2011 financing needs in 2010, in anticipation of new regulation. By contrast, the demand by local authorities and health care institutions for new long-term loans rose. The bank's market shares stabilized at the very high levels that were achieved in the previous year.
BNG obtained a total of EUR 9.4 billion in new long-term funding in the first half of 2011 (2010: EUR 9.6 billion). The bank's liquidity profile improved further in the period under review through this large-scale funding with relatively long maturity.
The interest result for the first half of 2011 increased by EUR 25 million to EUR 227 million compared to the same period in 2010. This increase was, among others, due to the expansion of the long-term lending portfolio. The result financial transactions amounted to EUR 11 million negative in the period under review (2010: EUR 54 million negative). This result was influenced by the growing concerns about the financing problems and creditworthiness of peripheral euro countries.
BNG's strong solvency position is reflected by the high BIS tier 1 ratio. This ratio remained practically stable at 19.9%. The Basel III regulations prescribe a minimum requirement of the leverage ratio of 3% from 2018 onwards. This ratio remained unchanged compared to the year-end 2010 at 2.0%. In the first half of 2011, BNG drew up a plan to meet this minimum requirement at the latest by year-end 2017. It was concluded that the necessary growth of equity will have to be achieved by retaining a larger percentage of the net profit, supplemented by the issuing of eligible hybrid securities. The adjustment of the dividend policy will be prepared in the next half year. The other components of the Basel III regulations are expected to have hardly any influence on the bank's operational management.
BNG is looking forward to the 2011 profit development with confidence. The interest result 2011 is expected to be higher than in 2010. However, given the volatility of the financial markets against the background of the international debt crisis as well as all other uncertainties, the bank does not consider it wise to make a statement regarding the 2011 expected net profit.
On 30 August 2011, BNG will publish its interim report 2011 on its website (http://www.bng.com).
This is an unofficial translation of the press release 'Nettowinst BNG EUR 154 miljoen' which is provided for convenience only. In the event of any ambiguity, the Dutch text will prevail.
Consolidated balance sheet as at 30 June 2011
In millions of euros
30-06-2011 31-12-2010
Assets
Cash and cash equivalents 279 1,073
Banks 8,769 7,382
Loans and advances 87,732 86,851
Financial assets at fair value
through the income statement 2,468 3,052
Financial assets available for sale 6,877 6,412
Other financial assets 9,728 13,457
Associates and joint ventures 109 109
Property and equipment 20 21
Other assets 229 176
Total assets 116,211 118,533
Liabilities
Banks 4,748 6,037
Funds entrusted 8,952 7,677
Subordinated loans 93 92
Debt securities 90,717 92,321
Financial liabilities at fair value
through the income statement 659 351
Other financial liabilities 8,509 9,320
Other liabilities 259 178
Total liabilities 113,937 116,274
Equity 2,274 2,259
Total liabilities and equity 116,211 118,533
Consolidated income statement
In millions of euros
First First
half of half of
2011 2010
- Interest income 1,076 921
- Interest expenses 849 719
Interest result 227 202
Income from associates and joint ventures 0 0
- Commission income 18 20
- Commission expense 3 3
Commission result 15 17
Result financial transactions -11 -54
Other income 4 0
Total income 235 165
- Staff costs 17 17
- Other administrative expenses 11 11
Staff costs and other administrative expenses 28 28
Depreciation 1 1
Total expenses 29 29
Profit before tax 206 136
Tax expense 52 26
Net profit 154 110
PRN NLD
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