TIDM49WP
RNS Number : 7197J
NIBC Bank N.V.
25 August 2021
NIBC PRESS RELEASE
The Hague, 25 August 2021
NIBC reports strong performance in H1 2021 with net profit of
EUR 91 million and a strong capital base
Business and financial highlights
n NIBC had a strong half year, with operating income benefitting
from positive results of the equity investment portfolio and an
increase in fee income;
n Interest income equals EUR 188 million (-9%), following
development of both portfolio volumes and spreads. The net interest
margin (1.87%) showed resilience, benefiting from lower funding
costs;
n Cost/income ratio of 46%, including continued investments in
both strategic initiatives and projects to address new regulatory
requirements and process improvements;
n Credit losses have decreased considerably to EUR 14 million in
H1 2021 (from EUR 84 million in H1 2020), reflecting the improved
economic situation and outlook;
n Continued strong capital position with a CET 1 ratio of 20.0%
(2020: 19.9%) and an ROE of 10.2% (H1 2020: 0.3%); and
n All-in-all, this has led to a net profit attributable to
shareholders of EUR 91 million (H1 2020: EUR 3 million).
Statement of the CEO
"I am pleased to announce that NIBC is reporting a strong
performance with a profit for the first half of 2021 of EUR 91
million (H1 2020: EUR 3 million). In these times of economic
uncertainty, we were able to deliver upon our promises of being a
dynamic, entrepreneurial banking partner to our clients. We
continued to focus on re-inventing ourselves where we see the best
growth opportunities for our corporate and consumer clients. We
actively evaluate our asset classes, also taking into account our
risk appetite, leading to continued rebalancing towards more
granular asset classes. With our client and product diversification
we have created a strong fundament that allows us to capture new
business opportunities and selectively explore areas of growth and
future profitability.
Our strong capital and liquidity position allows us to support
our clients in their growth ambitions and to simultaneously build
our franchises in those niches where we can make a difference. Our
label OIMIO expanded its business to a total exposure of more than
EUR 100 million in smaller ticket real estate financing. Lot
Hypotheken has celebrated its one-year anniversary and, with a
steadily growing number of clients and total loans outstanding
approaching EUR 1 billion, is well-positioned for further growth in
the sustainable mortgage market. Beequip celebrated its fifth
anniversary and again demonstrated strong growth. It is
well-positioned to follow its international clients into Europe as
an alternative financier for equipment leasing.
In July we announced the acquisition of Finqus' EUR 1.5 billion
mortgage loan portfolio. We look forward to welcoming Finqus'
customers in the second half of the year. During the first half
year, we organically grew our owner-occupied mortgage loan
portfolio to EUR 9.2 billion (+2%) and our buy-to-let (BtL)
portfolio to EUR 883 million (+3%). We also continued to expand our
fee generating Originate-to-Manage (OTM) activities. Our OTM
portfolio of mortgage loans grew by 15% to a total of EUR 8.7
billion with ample growth potential of a total mandate of more than
EUR 12 billion per H1 2021. The OTM portfolio of corporate
exposures grew to EUR 1.4 billion (+36%). The corporate loan book
showed a limited decrease as re- and prepayments were almost offset
by strong performance in Commercial Real Estate and
Infrastructure.
Costs are actively managed and well under control, even though
we continue to invest in growth initiatives as well as in the IT
environment of the Bank and fully absorb the again increased
regulatory costs. All in all, this resulted in an improved
cost/income ratio of 46% (H1 2020: 54%).
We saw our credit loss expenses decrease to EUR 14 million (H1
2020: EUR 84 million), reflecting the impact of the positive
economic developments. To address the enduring uncertainties in the
various portfolios, we have continued to apply a management overlay
at the same level as year-end 2020.
Looking at the world around us, the context in which we have to
operate nowadays remains unprecedented, and there is a sector-wide
concern regarding the background of low and even negative interest
rates, excess liquidity and increasing regulatory demand. On the
back of the government support measures, the Dutch and
north-western Europe economies seem to weather the crisis
relatively well, however, it remains to be seen what the long-term
effects will be of both the government support measures and the
prolonged expansionary monetary policy. We will continue to provide
our clients with the best service and support where possible, and
at the same time steer the bank through the COVID-19 pandemic. The
pandemic has changed the way we work and we are proud of the
resilience that our people have shown in these special times. We
are looking forward to supporting our people in safely returning to
the office in the second half of 2021 and beyond.
NIBC has a robust and fully integrated sustainability strategy
that guides our business decisions. Serving our clients in the best
possible way is at the center of our operations. During the first
half year of 2021, NIBC closed green deals in a growing number of
sectors as clients increasingly focus on making their businesses
sustainable and linking their efforts in this area to their
financing solutions. With our strong ESG profile, we are well
positioned to support them in these endeavors. For example, NIBC
supports improved standards for responsible ship recycling, we have
got a great number of investors that showed interest in our new and
fully ESG compliant CLO, which has been in the top decile of league
tables throughout the COVID-19 crisis. Another example is the
introduction of our sustainable mortgage label Lot Hypotheken last
year. Our most recent initiative is the launch of our green bond
framework, which enables us to issue green bonds to finance green
assets in the real estate and infrastructure sectors.
We are encouraged by the support of our new shareholder
Blackstone in our continuous effort to be a leading niche player.
We are excited to seize new opportunities and possibilities for
further growth together, as proven by the acquisition of the Finqus
portfolio. We are looking forward to welcoming Leni Boeren as new
member of our Supervisory Board later this year.
At the heart of our business are our people. As a bank built for
entrepreneurs, we are committed to cultivate our 'Think YES'
mentality by being professional, entrepreneurial and inventive and
by matching our clients' can-do attitude. I would particularly like
to thank our employees for their continued trust, flexibility and
hard work to support our clients in these exciting times.
For the year ahead, the environment remains uncertain. Yet there
are some positive macroeconomic signs which further motivate us to
help our clients to realise new growth opportunities. I am
confident that NIBC has a strong basis for future growth, and with
our new shareholder's support and our engaged staff we are in good
shape for the remainder of 2021 and beyond."
NIBC Holding N.V. - Key Figures
in EUR millions H1 2021 H2 2020 H1 2020
--------------------------------------- --------------------- ---------------------- ------------
Operating income 244 216 215
Operating expenses 113 115 117
--------------------------------------- --------------------- ---------------------- ------------
Net operating income 131 100 98
Credit loss expense / (recovery) 14 58 84
Tax 21 -7 5
--------------------------------------- --------------------- ---------------------- ------------
Profit after tax 97 50 9
Profit attributable to non-controlling
shareholders (AT-1) 6 6 6
--------------------------------------- --------------------- ---------------------- ------------
Profit after tax attributable to
shareholders 91 44 3
--------------------------------------- --------------------- ---------------------- ------------
Return on equity 10,2% 2,6% 0,3%
CET 1 ratio 20,0% 19,9% 18,5%
Cost/income ratio 46% 54% 54%
Credit rating S&P BBB+ Stable BBB+ Negative BBB+
Negative
Credit rating Fitch BBB Negative BBB Negative BBB Stable
--------------------------------------- --------------------- ---------------------- ------------
We refer to our Interim Report 2021 NIBC Holding N.V. published on our website for full details.
Press and debt investor
contact NIBC
Martin Groot Wesseldijk Eveline van Wesemael Toine Teulings
Press Relations Press Relations Debt Investor Relations
T: +31 70 342 5418 T: +31 70 342 5412 T: +31 70 342 9836
E: martin.groot.wesseldijk@nibc.com E: eveline.van.wesemael@nibc.com E: toine.teulings@nibc.com
About NIBC
NIBC is an enterprising bank focused on our clients' most
decisive financial moments. Now and in the future. A bank that,
like our clients, thinks ahead. We call this our 'THINK YES'
mentality. For our consumer clients in the Netherlands, Germany and
Belgium we offer mortgages, online savings and brokerage products
that are accessible, easy to understand and fairly priced. We
support our corporate clients in building their businesses.
Operating in the Netherlands, Germany and UK, our corporate clients
business (mainly mid-market) offers advice and debt, mezzanine and
equity financing solutions to entrepreneurs across select sectors
and sub-sectors in which we have strong expertise and market
positions. The mid-market is dynamic by nature and requires a bank
that can respond quickly and in a highly flexible way. Our aim is
to meet the market's requirements at decisive moments such as
mergers and acquisitions, management buy-outs, investments and
strategic financings and re-financings. You can read more about
NIBC on www.nibc.com .
Forward-looking Statements
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discussions of strategy, plans, objectives, goals, future events or
intentions. The forward-looking statements included in this press
release with respect to the business, results of operation and
financial condition of NIBC Holding N.V. are subject to a number of
risks and uncertainties that could cause actual results to differ
materially from such forward-looking statements, including but not
limited to the following: changes in economic conditions in Western
Europe, changes in credit spreads or interest rates, the results of
our strategy and investment policies and objectives. NIBC Holding
N.V. undertakes no obligation to update or revise any
forward-looking statement to reflect events or circumstances that
may arise after the date of this release.
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