‘We’re happy with our monetary outcomes,’ says Gita Salden, Chief Govt Officer of BNG Financial institution. ‘We will look again on an excellent first half-year through which we had been in a position to present our public-sector purchasers with long-term loans value EUR 5.6 billion. We’re reporting a rise in our internet revenue, primarily attributable to an improved financial outlook, which is leading to decrease mortgage impairments and a greater consequence on monetary transactions.
The underlying internet curiosity earnings elevated by EUR 3 million to EUR 228 million; we handed the beneficial quick time period ECB funding charges on to our purchasers. We’re on monitor with our “Our street to affect” technique, which we’re utilizing to repeatedly improve our social affect.’
BNG Financial institution can look again with satisfaction on the monetary outcomes of the primary half 12 months. BNG Financial institution’s internet revenue for the primary half of 2021 amounted to EUR 187 million. The rise of EUR 87 million in comparison with the primary half of 2020 might be attributed to the diminishing affect of the COVID-19 pandemic on Western economies. Particularly, the improved financial outlook is positively effecting the financial institution’s outcomes on monetary transactions and the model-based mortgage impairments.
Elevated working bills of EUR 4 million
In comparison with the identical interval in 2020, common consolidated working bills rose by EUR 4 million to EUR 48 million. As anticipated, employees prices and the hiring of exterior help noticed a specific enhance, to permit the financial institution to proceed to fulfil its shopper integrity and gatekeeping obligations
In late July 2021, the ECB introduced that it might finish the dividend restrictions beginning 1 October 2021. BNG Financial institution can pay out the remaining dividend of EUR 148 million in October.
Lengthy-term mortgage portfolio steady at EUR 86.1 billion
The amount of latest long-term loans within the reporting interval amounted to EUR 5.6 billion, a rise of EUR 0.2 billion in comparison with the equal interval in 2020. With a rise of EUR 0.1 billion to EUR 86.1 billion, the long-term mortgage portfolio remained just about unchanged in comparison with year-end 2020.
Good entry to funding
Within the first half of 2021, BNG Financial institution raised EUR 6.4 billion in long-term funding by issuing bonds, together with a brand new EUR 2 billion SRI bond. The transaction constitutes BNG Financial institution’s inaugural bond difficulty underneath its renewed sustainability framework for Dutch municipalities. This framework hyperlinks the UN Sustainable Improvement Objectives (SDGs) to municipal budgets. The proceeds of the euro-denominated bond will likely be used for loans for all SDG-related bills of Dutch municipalities. Pricing within the first half of the 12 months, as measured by the credit score unfold, is corresponding to the final quarters earlier than the COVID-19 pandemic.
Robust capital place with a CET 1 ratio of 31% and Tier 1 ratio of 36%
BNG Financial institution continues to have a robust capital place. The danger-weighted solvency ratios decreased barely. This was because of the amended capital necessities (CRR 2), with capital reserved for credit score danger on derivatives exposures rising specifically. In consequence, the financial institution’s Widespread Fairness Tier 1 ratio and Tier 1 ratio decreased to 31% and 36% respectively as on the finish of June 2021. BNG Financial institution’s leverage ratio on the reporting date was 9.9%. The rise in comparison with year-end 2020 (3.5%) was brought on by the potential for excluding the financial institution’s promotional loans underneath the brand new capital necessities. The financial institution can be utilising the likelihood to exclude the liquidity place on the ECB in calculating the ratio. The ECB has prolonged this feature till the top of March 2022. With out the potential for exercising this feature, the leverage ratio would drop barely to three.3%. All the financial institution’s capital ratios stay effectively above the minimums set by the regulator.
BNG Financial institution is on target to satisfy its annual goal of EUR 10.5 billion of latest long-term loans not topic to solvency necessities. BNG Financial institution’s internet curiosity earnings in 2021 is predicted to be within the vary of EUR 440 million to EUR 470 million. As future market worth fluctuations and the event of impairments are by definition unsure, the financial institution doesn’t take into account it prudent to speak on the anticipated internet revenue in 2021.
The complete half-year report is offered at bngbank.nl.
BNG Financial institution is a dedicated associate for a extra sustainable world. We allow the general public sector to attain socially related goals. BNG Financial institution is a related participant within the funding of Dutch native authorities in addition to within the housing, healthcare, training, vitality, surroundings, mobility and networks sectors. BNG Financial institution doesn’t try for revenue maximization however for a good return that advantages the shareholder governments.
That is an unofficial translation of the Dutch press launch. This translation is supplied for comfort solely. Within the occasion of any ambiguity, the Dutch textual content will prevail.
|CONSOLIDATED BALANCE SHEET|
|Quantities in thousands and thousands of euro’s||30/06/2021||31/12/2020|
|Money and balances with central banks||15,713||2,312|
|Quantities due from banks||127||120|
|Money collateral posted||14,544||20,361|
|Monetary belongings at honest worth by the earnings assertion||1,376||1,452|
|Monetary belongings at honest worth by OCI||9,474||9,738|
|Curiosity-bearing securities at amortised price||7,704||7,880|
|Loans and advances at amortised price||89,230||88,942|
|Worth changes on loans in portfolio hedge accounting||15,100||20,816|
|Associates and joint ventures||31||31|
|Property & Tools||16||17|
|Present tax belongings||11||1|
|Quantities attributable to banks||18,729||12,221|
|Money collateral acquired||1,191||858|
|Monetary liabilities at FVTPL||625||656|
|Subordinated money owed||35||35|
|Deferred tax liabilities||85||98|
|Share premium capital||6||6|
|Money stream hedge reserve||9||11|
|Personal credit score adjustment||4||5|
|Price of hedging reserve||183||184|
|Fairness attributable to shareholders||4,328||4,364|
|TOTAL LIABILITIES AND EQUITY||159,840||160,359|
|CONSOLIDATED INCOME STATEMENT|
|Quantities in thousands and thousands of euro’s||30-6-2021||30-6-2020|
|– Curiosity revenues||2,244||2,534|
|– Curiosity bills||-2,016||-2,309|
|– Fee earnings||10||14|
|– Fee bills||-2||-2|
|Consequence on monetary transactions||63||-14|
|Outcomes from associates and joint ventures||1||3|
|TOTAL OPERATING INCOME||301||227|
|Different administrative bills||-22||-21|
|TOTAL OPERATING EXPENSES||-48||-44|
|Internet impairments on monetary belongings||7||-27|
|Internet impairments on associates and joint ventures||-0||-0|
|Contribution to decision fund||-2||-8|
|TOTAL OTHER EXPENSES||5||-35|
|PROFIT BEFORE TAXES||258||148|
|– of which attributable to the holders of hybrid capital||21||25|
|– of which attributable to shareholders||166||75|
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