Net profit EUR 126 million

  • update:    
BNG Bank reports a net profit of EUR 126 million over 2014 (2013: EUR 283 million). A dividend of 25% of net profit will be proposed to the shareholders. This amounts to dividends totaling EUR 32 million.




Market shares remain high, confirming the importance of BNG Bank's role. Around 65% of the total demand for long-term solvency-free lending from the municipal and provincial authorities, housing associations and healthcare institutions was fulfilled by the bank. New long-term lending totaled EUR 9.2 billion in 2014 (2013: EUR 11.9 billion). Amid the current economic conditions and the many new laws and regulations affecting the bank's core client segments, there has been a reluctance to take on new investments, and consequently client demand has declined.

For both refinancing and lending purposes, BNG Bank raised EUR 14.9 billion in long-term funding in 2014 (2013: EUR 15.0 billion). The increasing confidence in the euro and the European banking sector on the international capital markets generated a broader supply of long-term funds at attractive prices during the year under review. The spreads that investors are willing to receive to invest in BNG Bank's bonds dropped again in 2014. Debt instruments issued by BNG Bank have received credit ratings of AA+, Aaa and AAA from Standard & Poor's (S&P), Moody's and Fitch, respectively. BNG Bank is among the world's most creditworthy banks.

The 2014 interest result fell to EUR 444 million (2013: 530 million). This is mainly attributable to the consistent decline in market interest rates. Besides the structural decrease in the interest result, the substantial dip in net profit was mainly due to  negative unrealized market value adjustments in the result on financial transactions. These results partly stem from more conservative valuations following the outcome of the European Central Bank balance sheet test.

In order to improve the solidity of the bank, regulators have implemented new legislative and regulatory proposals. The effects of those new regulations is an increase of operating expenses and contributions such as those for the Dutch bank levy and the European resolution fund.

In 2015, the interest result is expected to be lower than in 2014. Due to persistently low market interest rates, interest revenues from the bank's own funds will show a downward trend. Going forward, the result on financial transactions will remain sensitive to political and economic developments in the European Union.

In view of the persisting uncertainties, BNG Bank will not express an opinion on the level of its expected net profit for 2015.

BNG Bank will publish its 2014 Annual Report on April 24, 2015.

Trefwoorden: Tags:  

 Content Query