Annual General Meeting of Shareholders adopts financial statements 2011

25 April 2012

During its meeting of 23 April 2012, the Annual General Meeting of Shareholders (AGM) adopted the financial statements for the year 2011 and discussed the new capitalization and dividend policy.

The AGM resolved to pay out a dividend equal to 25% of the net profit over 2011 (EUR 256 million). In addition the AGM appointed Messrs Theo Bovens and Jan Nooitgedagt members of the Supervisory Board.

New capitalization and dividend policy

The financial crisis has resulted in considerably tighter capital requirements for banks. The Basel Committee has proposed, among other things, to raise the minimum standards for BIS tier 1 ratios and to impose a lower limit for the leverage ratio, to be set at 3%. These new standards should come into effect as of 2018. The proposals by the Basel Committee have been translated into European directives and regulations (CRD-IV), of which a draft version was published in 2011. It should be noted that this draft version does not yet include any lower limit for the leverage ratio. The European Banking Authority (the supervisory authority for the European banking sector) has been commissioned to prepare an analysis of the minimum level of the ratio, also in view of the various banks' different organisational models, by 2016 at the latest.

With its ratio of 20%, BNG amply meets the tightened standard for the BIS tier 1 ratios. It does not however meet the proposed leverage ratio. In order to achieve the equity growth that is necessary for that purpose, the bank will have to retain a larger portion of its profits, possibly in combination with the issue, in due course, of a relatively limited number of hybrid debt securities that have the character of equity.

In view of the above and with due regard for the developments and expectations at year-end 2011, the policy of BNG is to propose to the AGM on an annual basis to set the dividend at 25% of the net profit. This policy should take effect with the dividend payout for the 2011 financial year and will continue to apply, in principle, during the entire transitional period until 2018. The dividend policy will be reconsidered as soon as there is clarity regarding the definitive form and level of the leverage ratio. The dividend policy will also be reconsidered in the unlikely event that the projected trend in growth and/or results does not materialise.

Appointments to Supervisory Board

The AGM has appointed Messrs Theo Bovens and Jan Nooitgedagt members of the Supervisory Board.

Mr T.J.F.M. Bovens (1959) has been the Queen’s Commissioner for the province of Limburg since 2011. In 2006 he became Crown-appointed member and member of the Executive Committee of the Social and Economic Council of the Netherlands.

Mr J.J. Nooitgedagt RA (1953) has been Chief Financial Officer and member of the Management Board of AEGON N.V. since 2009.

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