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Loan portfolio BNG Bank on course

‘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.’

Monetary outcomes

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

Dividend payout

In late July 2021, the ECB introduced that it might finish the dividend restrictions beginning 1 October 2021BNG 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 2021BNG 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.

Outlook

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
ASSETS
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
Derivatives 6,167 8,540
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
Different belongings 347 149
TOTAL ASSETS 159,840 160,359
LIABILITIES
Quantities attributable to banks 18,729 12,221
Money collateral acquired 1,191 858
Monetary liabilities at FVTPL 625 656
Derivatives 18,733 26,965
Debt securities 109,026 108,615
Funds entrusted 6,068 5,599
Subordinated money owed 35 35
Deferred tax liabilities 85 98
Different liabilities 287 215
TOTAL LIABILITIES 154,779 155,262
EQUITY
Share capital 139 139
Share premium capital 6 6
Retained earnings 3,740 3,712
Revaluation reserve 60 86
Money stream hedge reserve 9 11
Personal credit score adjustment 4 5
Price of hedging reserve 183 184
Internet revenue 187 221
Fairness attributable to shareholders 4,328 4,364
Hybrid capital 733 733
TOTAL EQUITY 5,061 5,097
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
Curiosity consequence 228 225
– Fee earnings 10 14
– Fee bills -2 -2
Fee consequence 8 12
Consequence on monetary transactions 63 -14
Outcomes from associates and joint ventures 1 3
Different outcomes 1 1
TOTAL OPERATING INCOME 301 227
Workers prices -25 -21
Different administrative bills -22 -21
Depreciation -1 -2
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
Taxes -71 -48
NET PROFIT 187 100
– of which attributable to the holders of hybrid capital 21 25
– of which attributable to shareholders 166 75

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