NIBC Bank reports solid financial position in very challenging market circumstances
The Hague, 14 November 2008
- Profit after tax from continuing operations amounts to EUR 155 million in the first nine months of 2008, a decrease of 24% compared to the same period last year; Q3 profit after tax from continuing operations amounts to EUR 45 million
- Net profit attributable to parent shareholder is EUR 153 million in the first nine months of 2008, an increase of 135% compared to the same period last year, when we took a loss on discontinued operations of EUR 139 million
- Tier-1 ratio at a comfortable level of 15.3%, core Tier-1 ratio at 12.8% and BIS-ratio at 17.5%
- Funding diversification continues with successful launch of NIBC Direct, NIBC’s online retail savings initiative
- NIBC decided to align the valuation of its portfolio with market practice after the International Accounting Standards Board issued and the European Union adopted amendments to reclassify certain portfolios. These reclassifications have a positive effect of EUR 42 million on net profit
- Q3 environment complex and difficult with Merchant Banking activities under pressure; successful Q3 business activities include investment management and financing transactions
Jeroen Drost, Chief Executive Officer of NIBC
"Market conditions deteriorated further in the third quarter. Although we report a positive result in the first nine months and we were able to arrange important client transactions, our Merchant Banking activities came under pressure in the third quarter. We are pleased that already at an early stage, in the first half of 2007, we recognised and solved our US exposure, enabling us to de-risk our balance sheet and improve our capitalisation to a healthy Tier-1 ratio of 15.3%. With our decisive actions, we have created a solid foundation and a clearly-defined strategy to help us weather the current downturn. Our sound liquidity position is the result of our prudent funding strategy over many years and our early action in anticipation of current market circumstances. "
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