THE HAGUE, Netherlands, August 27, 2013 /PRNewswire/ --
BNG Bank Interim Report 2013
In the first half of 2013 BNG Bank posted a net profit of EUR 123 million, down EUR 36 million on the same period in 2012. The interest result - the bank's core result - showed a slight increase of EUR 13 million. The result: financial transactions came under pressure because of a change in the valuation method of derivatives in line with the valuation now customary in the market; this gave rise to an incidental unrealized result of EUR 27 million negative. The bank also posted an additional impairment of a little over EUR 20 million on a participation.
New long-term lending during the reporting period amounted to EUR 5.7 billion, the same as in the first half of 2012. BNG Bank's social importance is underlined by the bank's persistently high share in the total funding demand from the client sectors. In 2013 client demand primarily relates to the refinancing of existing loans. As a result of the economic conditions and the announced cutbacks clients are reluctant to make new investments.
For both refinancing and lending purposes, BNG Bank raised a total of EUR 7.7 billion (2012: EUR 9.8 billion) in long-term funding in the period under review. The subsidence of the turmoil in the international capital markets enabled the bank to improve its liquidity profile on favorable conditions.
BNG Bank expects that the interest result for 2013 will exceed the figure for 2012. The result financial transactions will also in 2013 remain volatile, partly due to the development of the European debt crisis. In view of all uncertainties, the bank does not consider it wise to make a statement regarding the expected 2013 net profit.
Today, BNG Bank will publish its half-yearly report about the first half of 2013 on bngbank.com. We refer to this publication for a detailed explanation.
This is an unofficial translation of the press release 'BNG Bank Halfjaarbericht 2013' which is provided for convenience only. In the event of any ambiguity, the Dutch text will prevail. For further information please contact:
Aart Rietveld, BNG Bank spokesman
P.O. Box 30305
2500 GH THE HAGUE
BNG Bank is the bank of and for local authorities and public sector institutions. The bank makes a sustainable contribution to minimizing the costs of social provisions for the public.
Consolidated balance sheet as at June 30, 2013
Amounts in millions of euros
June December 30, 2013 31, 2012 ASSETS Cash and balances with the central banks 4,360 2,834 Amounts due from banks 9,239 10,171 Financial assets at fair value through the income statement 3,322 3,476 Other financial assets 19,746 25,824 Financial assets available-for-sale 9,646 9,018 Loans and advances 91,136 90,725 Investments in associates and joint ventures 59 89 Property and equipment 18 18 Other assets 132 73 TOTAL ASSETS 137,658 142,228 LIABILITIES Amounts due to banks 5,296 6,223 Financial liabilities at fair value through the income statement 2,633 2,730 Other financial liabilities 16,096 18,692 Debt securities 98,648 99,424 Funds entrusted 11,838 12,139 Subordinated debts 33 33 Other liabilities 193 235 Total liabilities 134,737 139,476 Share capital 139 139 Share premium reserve 6 6 Revaluation reserve 163 103 Cash flow hedge reserve 0 -69 Other reserves 2,490 2,241 Net profit 123 332 Equity 2,921 2,752 TOTAL LIABILITIES AND EQUITY 137,658 142,228
Consolidated income statement
Amounts in millions of euros
First half of 2013 First half of 2012 - Interest income 725 1,172 - Interest expense 471 931 Interest result 254 241 Results from associates and joint ventures 0 0 - Commission income 16 16 - Commission expense 3 3 Commission result 13 13 Result financial transactions -49 -9 Other results 2 3 TOTAL INCOME 220 248 Staff costs 18 18 Other administrative expenses 12 11 Depreciation 1 1 TOTAL OPERATING EXPENSES 31 30 Impairments 18 6 PROFIT BEFORE TAX 171 212 Taxes -48 -53 NET PROFIT 123 159
SOURCE BNG Bank