TIDM49WP
RNS Number : 1581R
NIBC Bank N.V.
04 March 2021
NIBC PRESS RELEASE
The Hague, 4 March 2021
NIBC posts a net profit of EUR 47 million for 2020 and a very
strong capital base with a CET 1 ratio of 19.9%
NIBC shows resilience and is capable to respond to unprecedented
times
n Our performance is significantly impacted by COVID-19 in 2020.
However, with a net profit of EUR 47 million for 2020 and a return
on equity of 2.6%, NIBC shows resilience;
n Strong origination of mortgages welcoming over 19,000 new
clients led to a 4% market share and a 24% increase of our total
mortgage loan portfolio to EUR 17.4 billion in 2020;
n De-risking of our corporate portfolio led to a decrease of 0.5
billion in Energy and Leveraged Finance while we continued to
invest and grow in our more granular portfolios and new
ventures;
n Operating income of EUR 431 million (2019: EUR 537 million)
supported by a resilient net interest income of EUR 403 million and
a small increase of fee and commission income to EUR 43 million
(+6%). Both investment income and other income reflect the direct
negative impact of the COVID-19 pandemic;
n Operating expenses amounting to EUR 232 million (incl.
non-recurring costs of EUR 17 million) are 2% below 2019. Due to
lower operating income, the cost/income ratio increased to 54%;
n Impairments increased to EUR 141 million (2019: EUR 49
million) reflecting the challenging environment we all face;
and
n As a result of our actively de-risking the balance sheet, the
risk weighted assets are reduced by almost 10%, which is reflected
in a CET 1 ratio of 19.9% (2019: 17.1%).
Statement of the CEO
"NIBC celebrated its 75th anniversary this year - the right
moment to reflect on how we have built on our strength and evolved
over the decades since our origins in 1945. Our rich history has
made us the entrepreneurial and inventive bank that we are today.
And in our new shareholder Blackstone, we have found a strong
partner to support our strategy as we look ahead and continue to
seek growth.
Our enterprising, Think Yes mindset helps us in being flexible
and to adapt to changing and challenging circumstances. 2020 was an
exceptional example of this. Last year we lived in unprecedented
times: the COVID--19 pandemic influenced our personal lives and
there is no denying that conditions have been tough for businesses
and economies as they continue to battle the impact of the
pandemic. NIBC reacted swiftly to the crisis by implementing a
COVID-19 crisis team with the aim of safeguarding the well-being of
our colleagues and clients, and keeping a clear view on the
developments across different countries. We have continued our
investments in IT, which have helped to facilitate a smooth
transition to fully working from home since 16 March 2020 for all
our offices. It is obvious that our clients are also affected by
COVID-19. Throughout the year, we have mainly used an individual
approach, supporting our clients by seeking specific solutions that
would work best for their situation. Through the use of payment
holidays and other tailor-made solutions, we have supported them
and their businesses. I am proud that we have been able to provide
these services and support to our clients without any material
disruptions in our business processes.
Last year, we used our strong capital and liquidity position to
service our clients in support of their business ambitions and to
continue strengthening our franchise. Against the current difficult
market conditions, we continued to further invest in our growth
engines which underlines our entrepreneurial culture. We invested
in smart finance solutions with our new initiative yesqar,
commercial real estate through our new OIMIO label, mortgage loans
with our new label LOT and consumer lending via Lendex. We
continued to grow our Buy-to-Let franchise and our lease
receivables portfolio through Beequip. Within existing lending
portfolios, we continued to focus on smaller, selective projects in
specific asset classes such as Commercial Real Estate, Shipping,
Fintech, Mobility & Structured Finance and Infrastructure. Our
Originate-to-Manage (OTM) portfolio of corporate client assets has
grown to over EUR 1 billion. On the retail side our mortgage
origination levels were strong in 2020, especially for the longer
tenures. With total retail client exposures reaching more than EUR
17 billion, a strong increase of 24% compared to last year, NIBC is
servicing over 130,000 clients with a suitable mortgage offering.
We further expanded our OTM activities with mandates for mortgage
loans of almost EUR 10 billion per year end 2020.
We continue to focus on asset quality, managing exposures and
risk-weighted assets into the strategic direction of more granular
exposures and a better risk/reward ratio. In various asset classes,
we observe an unhealthy development of margins decreasing further,
as markets are flooded by liquidity, whereas risks are not
reducing. Therefore we continued to reduce our positions in certain
sectors. Overall, this has led to a decrease of total assets on the
corporate client side, reflecting a conscious scaling back of our
cyclical sectors and pre- and repayments in other sectors. This
strategy is executed on the back of a strong capital position, as
the CET 1 ratio increased to 19.9%, through the addition of the
2019 eligible profit and a reduction of risk-weighted assets. In
response to the COVID-19 outbreak, we have chosen to manage our
liquidity position carefully, ensuring ample liquidity buffers to
be ready to support clients and to address any potential
difficulties.
At the same time, we continued to emphasise operational
efficiency and firm cost control, leading to operating expenses
lower than 2019, even though we have again invested in new
initiatives and improvements of the operational environment.
However, due to lower operating income, the cost/income ratio
increased to 54%.
Given the difficult conditions, NIBC is proud to report a solid
result over 2020. It is inevitable that our annual results are
affected by COVID-19. The pandemic has led to a significant
increase in credit losses, mainly related to corporate exposures.
However, a net profit of EUR 47 million for 2020 shows the bank's
resilience and ability to respond to difficult circumstances.
On the organisational side we have seen several developments as
well. In Germany, we have streamlined our organisation to service
our German clients in selected niches where we can make a
difference through focus and an efficient organisation. To improve
operational excellence and efficiency, we have reorganised the
Frankfurt office and we have merged NIBC Bank Deutschland AG with
NIBC Bank N.V.. We will continue our services as a branch, being
active more than 15 years now. In addition, we have increased our
focus by discontinuing subscale activities. In the UK, we
celebrated the 25th anniversary of our London office, as we
continued preparations for a post-Brexit world, in which we will
continue to service UK clients and manage our CLO platform from our
branch. In our Belgian branch, our team has succeeded to provide
its services for our savings platform under difficult
circumstances. Following the discontinuation of our capital market
activities, we have closed the Amsterdam office in 2020.
In February last year, we announced the public offer by
Blackstone on all NIBC shares. With the macro-economic developments
and the changes we have seen in the world around us, the whole
process has taken longer than expected. On 24 December 2020 we were
very pleased to announce that the deal was officially finalised,
which was followed by settlement of the offer on 30 December 2020.
This has resulted in a formal delisting of NIBC from Euronext on 18
February 2021.
I am excited we have been able to complete this important next
step for the future of our company. Together with Blackstone, NIBC
is well positioned to further strengthen its role as a leading
niche banking player. Blackstone will support our strategy as we
continue to look ahead and innovate through new avenues of growth.
I would like to thank our former shareholder J.C. Flowers & Co.
and want to emphasize that without their unfailing support in good
and in challenging times, we would never have been the lean and
mean entrepreneurial bank we are today.
As always, nothing would have been possible without the hard
work and dedication of our staff. Their commitment and engagement
was re-emphasised in our Employee Experience Survey. We performed a
special COVID survey to monitor the atmosphere amongst our
employees. The overall engagement was high, putting NIBC ahead of
other financial services organisations and reiterating the overall
employee satisfaction. I am proud and grateful that our people
maintained their focus and concentration despite the uncertain and
difficult external climate.
In addition to our employees, I would like to thank all our
stakeholders for their commitment, patience and trust in 2020. For
the year ahead, the (economic) environment remains uncertain and
there is no clarity yet on when this uncertainty will end. Now,
more than ever, we are clearly focused on our strength being a
dynamic and entrepreneurial banking partner to our clients. Just as
in the last 75 years, NIBC will be there for its clients in 2021.
NIBC has a strong basis for further growth, and with the support of
our new shareholders, we look ahead to 2021 and beyond with
confidence . "
NIBC Holding N.V. - Key Figures
in EUR millions 2020 2019
-------------------------------------------- -------------- ------------
Operating income 431 537
Operating expenses 232 237
-------------------------------------------- -------------- ------------
Net operating income 199 300
Impairments of financial and non-financial
assets 141 49
Tax (2) 45
-------------------------------------------- -------------- ------------
Profit after tax 59 206
Profit attributable to non-controlling
shareholders (AT-1) 12 12
-------------------------------------------- -------------- ------------
Profit after tax attributable to
shareholders 47 194
-------------------------------------------- -------------- ------------
Return on equity 2.6% 11.4%
CET 1 ratio 19.9% 17.1%
Cost/income ratio 54% 44%
Credit rating S&P BBB+ Negative BBB+ Stable
Outlook Outlook
Credit rating Fitch BBB Negative BBB stable
Outlook Outlook
-------------------------------------------- -------------- ------------
We refer to our Annual Report 2020 NIBC Holding N.V. published on our website for full details.
For more information, visit our website at https://www.nibc.com
or contact:
NIBC Press enquiries
Martin Groot Wesseldijk
T: +31 6 5160 8425 | E: martin.groot.wesseldijk@nibc.com
Eveline van Wesemael
T: +31 70 342 5412 | E: eveline.van.wesemael@nibc.com
NIBC Investor enquiries
Toine Teulings
T: +31 70 342 9836 | E: toine.teulings@nibc.com
About NIBC
NIBC is best suited to help entrepreneurs at their decisive
moments. Now and in the future. As a bank for entrepreneurs, we are
committed to cultivating our 'THINK YES' mentality by being
flexible and agile and by matching our clients' can-do attitude. We
support our corporate clients in building their businesses. For our
retail clients in the Netherlands, Germany and Belgium we offer
mortgages, online savings and brokerage products that are
accessible, easy to understand and fairly priced. Operating in the
Netherlands (The Hague), Germany and UK, our corporate clients
business (mainly mid-market) offers advice and debt, mezzanine and
equity financing solutions to entrepreneurs across select sectors
and sub-sectors in which we have strong expertise and market
positions. The midmarket is dynamic by nature and requires a bank
that can respond quickly and in a highly flexible way. Our aim is
to meet the market's requirements at decisive moments such as
mergers and acquisitions, management buy-outs, investments and
strategic financings and re-financings.
Notes to the press release
Parts of this press release contain inside information within
the meaning of article 7 of Regulation (EU) No 596/2014 (Market
Abuse Regulation). This public announcement does not constitute an
offer, or any solicitation of any offer, to buy or subscribe for
any securities in NIBC Holding N.V.
Forward-looking Statements
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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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END
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