THE HAGUE, The Netherlands, March 9, 2015 /PRNewswire/ --
BNG Bank Annual Results 2014
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 on BNG Bank will publish its 2014 Annual Report on April 24, 2015 on http://www.bngbank.com.
BNG Bank is the bank of and for local authorities and public sector institutions. The bank makes a sustainable contribution to minimizing the costs of social provisions for the public.
This is an unofficial translation of the Dutch press release 'BNG Bank Jaarcijfers 2014'. This translation is provided for convenience only. In the event of any ambiguity, the Dutch text will prevail.
Consolidated balance sheet
Amounts in millions of euros
31-12-2014 31-12-2013
ASSETS
Cash and balances with the central banks 2,241 1,467
Amounts due from banks 11,046 8,509
Financial assets at fair value through the income statement 4,247 3,532
Other financial assets 31,322 15,494
Financial assets available-for-sale 13,693 9,604
Loans and advances 90,732 92,074
Investments in associates and joint ventures 54 53
Property and equipment 16 17
Other assets 154 52
TOTAL ASSETS 153,505 131,183
LIABILITIES
Amounts due to banks 2,544 3,939
Financial liabilities at fair value through the income statement 3,327 3,553
Other financial liabilities 25,357 15,086
Debt securities 106,069 94,828
Funds entrusted 12,334 10,033
Subordinated debts 32 32
Other liabilities 260 282
Total liabilities 149,923 127,753
Equity 3,582 3,430
TOTAL LIABILITIES 153,505 131,183
Consolidated income statement
Amounts in millions of euros
2014 2013
Interest income 1,258 1,514
- Interest expense 814 984
- Interest result 444 530
Results from associates and joint ventures 1 -1
- Commission income 35 30
- Commission expense 6 5
Commission result 29 25
Result on financial transactions -187 -5
Other results 4 3
Total income 291 552
- Staff costs 38 36
- Other administrative expenses 27 26
Staff costs and other administrative expenses 65 62
Depreciation 2 2
Total operating expenses 67 64
Impairments 15 58
Bank levy 30 33
Profit before tax 179 397
Taxes -53 -114
Net profit 126 283
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