Rietveld cure and female outside

Annual report 2019

2019 has been a challenging year for BNG Bank. 'The demand for credit and the realised volume are at exceptionally high levels. Clients use our financing to achieve their socially relevant objectives, such as more and affordable social housing, public facilities in municipalities, building and increasing the sustainability of real estate for healthcare and education as well as producing renewable energy', says CEO Gita Salden.

'In this way, BNG Bank fulfils its mission to support the public sector with financing at attractive terms. After all, price certainly matters, particularly to the public sector. At the same time, BNG Bank is not immune to the low-interest environment; this puts pressure on the interest rate margin and on the return on equity. Moreover, our operating expenses are increasing due to investments in digitalisation and costs resulting from supervision and regulations, including the gatekeeper function. We also had to make a significant impairment. All these factors combined led to a lower net profit. BNG Bank is and remains a well-capitalised bank.'

A total of EUR 17.8 billion in long-term funding was raised with international investors to cover lending. This included six benchmark loans – in euros and in US dollars – ranging in size from EUR 500 million to 3.0 billion. The total value of green bonds issued, since 2014, amounts to EUR 7 billion.

Creating social impact

BNG Bank's loans for all maturities, at attractive terms, are its main instrument for creating social impact. The volume of new long term lending amounted to EUR 14.0 billion. Relative to year-end 2018, the long term loan portfolio increased by EUR 2.6 billion to EUR 84.2 billion.

Through our financing, we have contributed to low costs for municipalities, housing associations, healthcare and education, and projects in the fields of energy and infrastructure. Increasing sustainability and the energy transition are key themes for our clients.

Following the Dutch Climate Agreement, we measured the CO2 impact of our loan portfolio for the first time in 2019. The results serve as a starting point for establishing an action plan to reduce the CO2 impact of our loan portfolio.

Financial results

The return on equity amounted to 3.6%, while the target is 3.7%. Net profit amounted to EUR 163 million. The main reasons for the decrease in net profit compared with 2018 are a lower result on financial transactions and higher provisions for credit losses.


Providing financing at low prices to our core clients remains our main instrument. Those low prices require an excellent risk profile (we are rated AAA) to enable us to raise funding at competitive rates. To maintain the risk profile and hence the low prices in the years ahead, it is necessary for BNG Bank to continue to manage the volume of loans that make use of the bank's risk capital (to a maximum of 10% of the loan portfolio). For that reason we need to be selective.

BNG Bank uses cookies for analytics and proper functioning of this website. Please confirm your cookie settings. Read more about our cookies and privacy statement.

BNG Bank places cookies for analytics and proper functioning of this website. Third-party cookies may also be placed. Therefore, we need your approval.