NIBC shows continued growth in net profit H1 2015Press Release -
- The reported net profit more than doubles to EUR 33 million in H1 2015 from EUR 15 million H1 2014. Excluding the one off SNS levy in H1 2014, net profit increases 18%
- The corporate loan book is stable at EUR 8.7 billion after some large repayments in H1 2015 from EUR 8.8 billion in 2014, while fee income increases to EUR 16 million
- Sustained business performance in Consumer Banking driven by increased mortgage portfolio to EUR 8.2 billion and savings balance of EUR 9.6 billion
- Net interest margin improves to 1.28% from 1.19%
- Impairments decrease 17% compared to H1 2014 to EUR 23 million
- Solid capital position
- Common Equity Tier-1 of 15.9% (2014: 15.5)
- Leverage ratio 6.6% in H1 2015
- Launch Think YES campaign to stimulate business growth by more positive brand appreciation
Statement of the CEO, Paulus de Wilt:
“NIBC’s results in H1 2015 further improved as a result of successful execution of NIBC’s strategy and in line with the general economic developments. Our improved business performance in both corporate and consumer banking is partly driven by new mortgages and savings from retail clients, a stable and more profitable corporate loan book and an increase in fee income from advisory services to our corporate clients. The improved business position of the bank is reflected by the increased operating income of 9% compared to H1 2014, a strong cost-income ratio and substantially lower impairments of financial assets (-17% compared to H1 2014).
All in all we are pleased with the growth of our reported net profit on the back of sustained growth in corporate and consumer banking. The corporate banking portfolio showed a healthy balance with new deals closed and planned reduction of several larger exposures. This resulted in an improved risk profile and profitability of the overall book. Currency effects from a stronger USD contributed to the growth of our book. In Germany, our second home market, the originating power is gaining momentum with an improved pipeline of corporate transactions.
Consumer banking is gradually growing a loyal base of retail clients. In H1 2015 the total savings balance increased to EUR 9.6 billion, proving loyalty of our savings customers despite the interest rate reductions. The consumer bank recorded further volume growth of our mortgage portfolio to EUR 8.2 billion despite increased competition on the mortgage markets. The recently introduced buy-to-let product shows a promising start, especially when we take into consideration that we are still building the distribution network for this unique product.
With a cost-income ratio of 53%, our cost base increased in order to facilitate future growth by investing in origination capacity in Germany, the Think Yes campaign, the insourcing of our retail contact centre and the roll out of the NIBCity project, which entails the implementation of flexible working throughout the organisation.
In June, our Think YES campaign entered a new phase. It perfectly reflects our entrepreneurial mentality, making us unique within our sector and greatly appreciated by our customers. This is evidenced in our net promotor score of +24% over the past 12 months. I would like to share my appreciation for the continued trust from all our clients in our financial products and services, which gives me the confidence that we will reach our mid-term objectives.”