REG - NIBC Bank N.V. - Final Results

ABN Amro Bank NVAnnouncement

08/03/2024 08:15

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RNS Number : 1399G  NIBC Bank N.V.  08 March 2024

 

 

 

The Hague, 8 March 2024
 

 

NIBC reports EUR 204 million net profit in 2023, demonstrating strong
performance and continued business growth

§  Strong performance in 2023, with a net profit of EUR 204 million (+32%),
and a return on target CET 1 of 16.5%.

§  Continued growth across all client franchises, demonstrating our focused
strategy is paying off: Mortgages (+6%), Asset Based Finance (+4%), Platforms
(+23%) and Savings (+7%).

§  Further increase of net interest margin to 2.06%, attributable to lower
funding costs.

§  Efficiency was further enhanced, reflected in a cost/income ratio of 44%
(2022: 52%) driven by both higher revenues (+15%) and decreased costs (-4%).

§  Strong capital position maintained, with an increased CET 1 ratio of
18.8%.

 

Statement of the CEO, Paulus de Wilt
"In 2023, we have continued to execute our focused strategy as an
entrepreneurial asset based financier. Backed by the launch of the new brand
positioning at the beginning of the year, we have further strengthened our
asset based finance proposition, resulting in growth in all core segments. In
addition, we have successfully found a new setting for both our CLO platform
and our equity investment activities, enabling both teams to pursue further
growth outside of NIBC.

In a dynamic world with significant changes in economic circumstances,
monetary policy-making and consequently in financial markets, we have again
proven our ability to adapt to a changing context. With shifting preferences
in the Dutch mortgage market, we have been able to use our broad and flexible
offering to meet changed customer demand. With our attractive savings
products, we have welcomed approximately 15,000 new Dutch savings clients,
growing the savings portfolio to

EUR 11.3 billion, up 7% from last year. Within Asset Based Finance, we
continue to explore new financing opportunities, often with a focus on
contributing to sustainable goals such as redevelopment of offices into modern
residential property. Both our platform offerings continue to report double
digit growth of their portfolios and both contribute positively to NIBC's
performance.

On the back of these developments, we deliver a strong financial performance,
as return on target CET 1 capital improved to 16.5%. This follows from a 32%
increase of net profit to EUR 204 million, proving that our focused strategy
is paying off. Performance is driven by the positive development of the bank's
net interest income, fueled by growth in all core segments and reduced funding
costs. Additionally, strict cost management has helped reduce the bank's
cost/income ratio to 44%, even though the bank continues to invest in further
enhancing its technological capabilities. Following active de-risking of the
portfolios and portfolio choices, credit losses remain moderate, with
negligible losses in core asset classes.

With our CET 1 ratio increasing to 18.8%, the bank remains well-capitalised.

I am proud of the commitment and dedication of our people, working hard to
execute on our strategy and to deliver value to our stakeholders. Looking
ahead, we will continue to use our corporate PACE (professional, adaptive,
collaborative and entrepreneurial) to enable ambitions and support our
clients. Even though economic conditions are likely to remain challenging and
uncertain, I am confident that NIBC is well-positioned to adapt to changing
circumstances and make use of the opportunities that this will bring for both
our clients and the bank itself. Backed by the strong results we report today
and using our 'Think Yes' mentality and entrepreneurial spirit, I look forward
to continue to support our clients in 2024."

 

NIBC Holding N.V. - Key Figures

 

 in EUR millions                                             2023                                    2022
 Operating income                                                           545                                     473
 Operating expenses                                                         237                                     247
 Net operating income                                                       308                                     226
 Credit loss expense / (recovery)                                             25                                     20
 Gains or (losses) on disposal of assets                                        7                                     (2)
 Tax                                                                          73                                     37
 Profit after tax                                                           216                                     167
 Profit attributable to non-controlling shareholders (AT-1)                   12                                     12
 Profit after tax attributable to shareholders                              204                                     155

 Return on equity                                            10.9%                                   8.6%
 Return on target CET 1 capital                              16.5%                                   11.6%
 Cost/income ratio                                           44%                                     52%
 CET 1 ratio                                                 18.8%                                   17.8%
 Credit rating - S&P(1)                                      BBB Stable                              BBB+ Stable
 Credit rating - Fitch(1)                                    BBB+ Positive                           BBB+ Stable
 Credit rating - Moody's(1/2)                                A3 Stable                               Baa1 Stable

 

1.         Reported ratings are based on NIBC's senior preferred debt
ratings.

2.         The rating of Moody's is unsolicited.

We refer to our Annual Report 2023 NIBC Holding N.V. published on our website
(https://nibc.com/investor-relations/financial-releases) for full details.

 

 

 

Press and debt investor contacts NIBC

     Eveline van Wesemael

Press Relations
     T: +31 70 342 5412
     E: eveline.van.wesemael@nibc.com (mailto:eveline.van.wesemael@nibc.com)

     Toine Teulings

Debt Investor Relations
     T: +31 70 342 9836
     E: toine.teulings@nibc.com (mailto:toine.teulings@nibc.com)

About NIBC
NIBC is the entrepreneurial asset financier for companies and individuals. We
finance assets from private housing to rental property, commercial real
estate, vessels, infrastructure, cars and equipment. As a professional and
reliable partner, we build long-term relationships based on knowledge and
expertise.

Renowned for our entrepreneurial spirit, we are committed to always making a
difference, for our clients and for society around us. Shaped by more than 75
years of experience, we support our clients in realising their ambitions and
actively helping to build a sustainable, resilient and inclusive society for
future generations.

NIBC employs around 700 people and is headquartered in The Hague, the
Netherlands. We serve clients internationally with a focus on Europe.

You can read more about NIBC on www.nibc.nl/nibc.com
(http://www.nibc.nl/nibc.com) .

 

Forward-looking Statements
This press release may include forward-looking statements. All statements
other than statements of historical facts may be forward-looking statements.
These forward-looking statements may be identified by the use of
forward-looking terminology, including but not limited to terms such as
guidance, expected, step up, announced, continued, incremental, on track,
accelerating, ongoing, innovation, drives, growth, optimising, new, to
develop, further, strengthening, implementing, well positioned, roll-out,
expanding, improvements, promising, to offer, more, to be or, in each case,
their negative or other variations or comparable terminology, or by
discussions of strategy, plans, objectives, goals, future events or
intentions. The forward-looking statements included in this press release with
respect to the business, results of operation and financial condition of NIBC
Holding N.V. are subject to a number of risks and uncertainties that could
cause actual results to differ materially from such forward-looking
statements, including but not limited to the following: changes in economic
conditions in Western Europe, changes in credit spreads or interest rates, the
results of our strategy and investment policies and objectives. NIBC Holding
N.V. undertakes no obligation to update or revise any forward-looking
statement to reflect events or circumstances that may arise after the date of
this release.

 

 

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