THE HAGUE, The Netherlands, March 4, 2013 /PRNewswire/ --
Net profit EUR 332 million
BNG realized a net profit of EUR 332 million for 2012, which is an increase of EUR 76 million compared with 2011. With this figure, the bank has well exceeded its profitability objective. Despite challenging market conditions, the bank's market position remained strong. Moody's, Fitch and Standard & Poor's have reconfirmed the bank's triple-A ratings. Investors regard BNG as one of the safest banks in the world. Like last year, it is proposed to the shareholders that 25% of the net profit be distributed as dividend.
The bank's high market shares confirm the importance of the bank's role. BNG met more than 70% of the long-term credit demand from its main client sectors. Total new long-term lending in 2012 fell by EUR 1.2 billion to EUR 11.1 billion. The difficult economic conditions have a knock-on effect on the willingness to invest among the bank's clients.
In 2012, EUR 15.2 billion (2011:EUR 16.4 billion) was attracted in long-term funding. The uncertainties about the European debt crisis continued. The bank had to pay relatively high credit and liquidity risk spreads, particularly in the first half of 2012. However, BNG was able at all times to attract funding on favourable terms and thus keep its liquidity profile at an adequate level.
The interest result rose slightly to EUR 473 million, which was in accordance with expectations. The result financial transactions turned from EUR 87 million negative in 2011 to EUR 88 million positive. This accounts almost entirely for the change in total income and is the result of decreasing concerns about the European debt crisis in the second half of the year. The 2012 result was negatively affected by the introduction of the bank levy and by impairments.
The financial sector is characterized by major developments in laws and regulations. Nearly all legislative proposals will directly or indirectly result in additional burdens. Apart from the implementation costs, this involves amongst others the costs associated with the central clearing of swap transactions and the significant increase in disclosure requirements pursuant to the new regulations.
The outlook for 2013 is once again clouded by more than usual uncertainties. The bank expects the volume of new long-term lending to be comparable with that of 2012. Clients are expected to be reluctant to make new investments. The bank foresees a small increase in the interest result. The result financial transactions remains highly sensitive to the development of the European debt crisis. In addition, an adjustment of the valuation of derivatives is expected to result in increasing unrealized result volatility.
In view of the continuing uncertainties, the bank does not consider it wise to make a statement regarding the 2013 net profit.
On 24 April 2013, BNG will publish its 2012 Annual Report on bng.com.
This is an unofficial translation of the Dutch press release 'BNG Jaarcijfers 2012' which is provided for convenience only. In the event of any ambiguity, the Dutch text will prevail.
Consolidated balance sheet as at 31 December 2012
In millions of euros
31-12-2012 31-12-2011 Assets Cash and balances with the central bank 2,834 5,149 Amounts due from banks 10,171 8,448 Financial assets at fair value through the income statement 3,476 3,322 Other financial assets 25,824 21,519 Financial assets available-for-sale 9,018 6,919 Loans and advances 90,725 90,775 Investments in associates and joint ventures 89 108 Property and equipment 18 19 Other assets 73 201 Total assets 142,228 136,460 Liabilities Amounts due to banks 6,223 7,469 Financial liabilities at fair value through the income statement 2,730 628 Other financial liabilities 18,692 14,367 Debt securities 99,424 100,907 Funds entrusted 12,139 10,944 Subordinated debts 33 93 Other liabilities 235 155 Total liabilities 139,476 134,563 Equity 2,752 1,897 Total liabilities and equity 142,228 136,460
Consolidated income statement for 2012
In millions of euros
2012 2011 - Interest income 2,115 2,327 - Interest expenses 1,642 1,865 Interest result 473 462 Results from associates and joint ventures (2) 0 - Commission income 31 33 - Commission expenses 6 6 Commission result 25 27 Result financial transactions 88 (87) Other results 4 4 Total operating income 588 406 - Staff costs 38 35 - Other administrative expenses 25 23 Staff costs and other administrative expenses 63 58 Depreciation 1 2 Total operating expenses 64 60 Impairments 32 7 Bank levy 32 - Profit before taxes 460 339 Taxes (128) (83) Net profit 332 256
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