NIBC Bank increases net profit to 73 million in 2012
Bank reports strong capital and liquidity position
- Net profit NIBC Bank up 7% to EUR 73 million in 2012 (EUR 68 million in 2011)
- NIBC Holding net profit increases 19% to EUR 102 million (2011: EUR 86 million)
- Strongly capitalised with core Tier-1 ratio of 14.1% for NIBC Holding (NIBC Bank 15.3%), among others by successful derisking of the balance sheet
- Consistently high liquidity ratios with Liquidity Coverage Ratio of 236% and Net Stable Funding Ratio of 114%
- Impairments stable and operating expenses down 14% in 2012
Jeroen Drost, Chief Executive Officer of NIBC:
"NIBC continued its solid performance in 2012, posting an increase in net profit of NIBC Holding to EUR 102 million. We are reaping the fruits of the early measures we took in 2008 to transform the bank. Our strategy of putting clients first, building a sustainably profitable business and strengthening our funding and solvency position is paying off. Despite our high liquidity buffers, we were able to increase our profitability again. At the same time, our strong liquidity position enabled us to accelerate the repayment of outstanding Government-guaranteed bonds.
Although economic circumstances remained fragile, we saw a slight improvement in market conditions towards the end of the year. This was underlined by a strong demand for several transactions we successfully closed in 2012, such as the senior unsecured bond of EUR 300 million, the Dutch MBS XVII EUR 526.5 million securitisation and a senior unsecured bond of NOK 500 million.
We made further progress in balancing our corporate and consumer banking activities, a new structure that we implemented in 2012. This enabled us to intensify our focus on the specific client segments we serve. Net revenues were well diversified across our service areas of financing, advising and investing with good performance by our international offices. An increased portion of these revenues came from our international offices. NIBC Direct increased its savings to EUR 7.7 billion from 6.1 billion in 2011.
Other key contributors to our profitable operations were a decline in expenses and impairments that remained well under control. As a result, the cost-to-income ratio declined further to 51% for NIBC Holding. The first cautious signs of economic recovery combined with our effective client-focused and profitable strategy allow us to view 2013 with full confidence."