TIDM49WP
RNS Number : 8369R
NIBC Bank N.V.
03 March 2023
The Hague, 3 March 2023
NIBC delivers strong performance with 18% growth in core
business over 2022
-- NIBC had a strong year with an underlying net profit of EUR
179 million (2021: EUR 193 million) before a non-recurring net loss
of EUR 23 million mainly related to the sale of two non-core
portfolios.
-- Strong performance of the core portfolios:
- the mortgage portfolio grew 15% to EUR 25.5 billion, including Originate-to-Manage business
- the Asset-Backed Finance segment increased its exposure by 25%
- platforms Beequip and yesqar continue to report strong growth,
with the portfolio reaching EUR 1.4 billion, up 53%
-- Non-core portfolio reduced by 29% to EUR 3.8 billion.
-- Recurring interest income increased to EUR 420 million (+8%),
driven by the positive development of our core portfolio volumes
and improved funding costs.
-- The cost/income ratio of 48% includes continued investments
in our IT environment, process improvements and strategic
projects.
-- Credit losses amount to EUR 30 million (2021: EUR 37 million).
-- Strong capital position with a CET 1 ratio of 17.8% (2021:
18.4%), absorbing additional regulatory requirements, and a return
on equity of 9.9%.
Statement of the CEO
"The successful execution of our focused strategy is reflected
in the growth of our core activities: Mortgages, Asset-Backed
Finance and Platforms. Across these asset classes, exposure
increased by a total of EUR 4.8 billion, also adding new clients.
Furthermore, our retail savings grew by EUR 0.4 billion. On the
other hand, our non-core activities were reduced by EUR 1.6
billion. On behalf of NIBC, I am thankful for the trust of all
clients, existing and new, as they have chosen us to support them
in achieving their ambitions.
Looking back at 2022, I am proud that NIBC has been able to make
these major steps. These positive developments were achieved
against the backdrop of economic uncertainty with flaring
inflation, hampered supply chains and the global tensions following
the war in Ukraine. Looking at the composition of our balance
sheet, we have made good progress in transforming NIBC into a true
asset-based financier. In light of this transformation, I am happy
to introduce NIBC's new brand proposition, which reflects our
modern and to-the-point approach to fulfilling our purpose, which
is to enable ambitions by financing assets.
With this transformation in mind, I am even more proud to report
a strong financial performance as well. A net profit of EUR 179
million or a return on equity of 9.9% excluding non-recurring
results of EUR 23 million illustrates that our focus on asset-based
financing provides an outstanding basis for future growth. Together
with our strong capital position, reflected in a CET I ratio of
17.8%, we are well-positioned to continue to provide asset
financing to both individuals and companies ranging from private
housing to rental property, commercial real estate, vessels, data
centres, fibre networks, cars and equipment.
Based on our core values (professional, adaptive, collaborative,
entrepreneurial), we are and will continue to be an entrepreneurial
financing partner to our clients. Recognition of our commitment to
servicing our clients is illustrated by the increased client
satisfaction scores from both retail and corporate clients as well
as by receiving the 'best mortgage lenders of 2022' for both NIBC
Direct and Lot Hypotheken, awarded by market professionals. In
2022, we saw our Mortgage Loan portfolio increase further to EUR
25.5 billion, an increase of 15%. Loan exposures within the
Asset-Backed Finance segment increased by 25%, driven by strong
origination and double-digit growth in all of its asset classes.
Our financing platforms, including Beequip, the largest alternative
financier of equipment in the Netherlands, and yesqar, a financier
to the automotive businesses, continued their strong growth with a
year-on-year increase of 53% in these portfolios, passing the EUR 1
billion milestone in 2022 and growing to EUR 1.4 billion.
The non-recurring result relates to the steps taken to reduce
exposure in the non-core portfolios. Through portfolio
transactions, we have sold both the Offshore Energy and the
Leveraged Finance portfolios and additionally, we have sold several
structured finance exposures. We have also decided that our CLO
platform and the investment franchise (NIBC investment Partners)
are no longer considered as core activities. In combination with
our continued efforts to further reduce our non-core exposures in
active dialogue with our clients, we have been able to reduce the
non-core exposures by 29%, to EUR 3.8 billion, with the ambition to
further reduce this in 2023 to below EUR 2.0 billion. These steps
have led to further de-risking of the balance sheet of NIBC. As a
consequence, we have decided to adjust our medium-term objective
for the CET I ratio, as lower risks translate into lower capital
requirements. Going forward, we will steer on a CET I ratio of 13%
as our new medium-term objective.
As sustainability is part of our targeted strategy, we continue
to actively manage our ESG profile. We are well positioned to
contribute to a more sustainable, resilient and inclusive future
for the communities we serve. In 2022, we have sold our Offshore
Energy portfolio, taking an important step towards our net-zero
ambition by putting our promises in the Climate Action Plan into
practice. Our 'green' mortgage label Lot was nominated for the SEH
Sustainability Award, as one of the most progressive mortgage
lenders to actively incorporate sustainability into its mortgage
policy. In April, our North Westerly CLO VII was awarded European
ESG Deal of the Year. Through all these steps, we continue to align
our activities and portfolios with our overall business strategy,
which integrates a balanced ESG approach.
I would like to thank Herman Dijkhuizen for his contribution to
the development of NIBC over the past 9.5 years. He has had a major
contribution to bringing NIBC where it is today, a well-performing
and well-capitalised bank. I look forward to working with Claire
Dumas, who will succeed Herman Dijkhuizen as Chief Financial
Officer and member of NIBC's Managing Board per 1 April 2023.
I am grateful for the commitment and dedication of our people
towards their work and our clients. The past year has, in different
and unexpected ways, been demanding for our people as well as our
clients. Looking ahead, we understand the nature of the challenges
before us as well as the opportunities. Economic conditions are
likely to remain challenging. Nevertheless, NIBC is well-positioned
to face these challenges and continue the execution of its business
strategy as a focused asset-based financier. Supported by our
'Think Yes' mentality, the entrepreneurial spirit of our people and
today's results, we are moving into 2023 with confidence. We will
continue to be there for our clients, now and in the future."
NIBC Holding N.V. - Key Figures
ex Non-recurring
in EUR millions 2022 ex Non-recurring 2022 2021 2021
----------------------------------------- --------------- ---------------------- --------------- -----------------
Operating income 473 510 525 517
Operating expenses 247 245 251 232
----------------------------------------- --------------- ---------------------- --------------- -----------------
Net operating income 226 265 274 285
Credit and other loss expenses 22 30 39 37
Income tax 37 45 40 43
----------------------------------------- --------------- ---------------------- --------------- -----------------
Profit after tax 167 191 194 205
Profit attributable to holders of
securities 12 12 12 12
--------------- ---------------------- --------------- -----------------
Profit after tax attributable to
shareholders
of the company 155 179 182 193
----------------------------------------- --------------- ---------------------- --------------- -----------------
Return on equity 8,6% 9,9% 10,2% 10,8%
CET 1 Ratio 17,8% 18,4%
Cost/income ratio 52% 48% 48% 45%
Credit rating - Fitch BBB Stable BBB Stable
BBB+
Credit rating - S&P Stable BBB+ Stable
----------------------------------------- --------------- ---------------------- --------------- -----------------
We refer to our Annual Report 2022 NIBC Holding N.V. published
on our website for full details.
http://www.rns-pdf.londonstockexchange.com/rns/8369R_1-2023-3-3.pdf
Press and debt investor contacts NIBC
Eveline van Wesemael
Press Relations
T: +31 70 342 5412
E: eveline.van.wesemael@nibc.com
Toine Teulings
Debt Investor Relations
T: +31 70 342 9836
E: toine.teulings@nibc.com
Michael Ros
Press Relations
T: +31 70 342 5262
E: michael.ros@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.com.
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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