THE HAGUE, The Netherlands, August 25, 2014 /PRNewswire/ --
BNG Bank INTERIM REPORT 2014
BNG Bank's net profit rose by EUR 30 million to EUR 153 million compared with the same period in 2013. The increase was mainly due to an improved result on financial transactions, almost entirely due to unrealized market value adjustments.
At EUR 4.7 billion the volume of new long-term lending in the reporting period was almost EUR 1.0 billion lower than in the first half year of 2013. The bank's persistently high share in the total demand for financing in its main client sectors in conjunction with the lower volume reflects a decline in client demand. This demand largely relates to the refinancing of existing loans. The unfavorable economic conditions coupled with spending cuts or tax and rate increases offer the bank's clients little room for new investments. Moreover, clients have adopted a reticent approach due to continuously changing regulations.
In the reporting period BNG Bank raised EUR 9.6 billion (2013: EUR 7.7 billion) long-term funding for refinancing and lending purposes. The international capital markets' growing confidence in the euro and the European banking sector has further improved the availability of funding at attractive rates.
BNG Bank will most probably fall under the direct supervision of the European Central Bank effective November 2014. In the build-up to this transition, the bank is taking part in the Comprehensive Assessment, which includes the Asset Quality Review and the Stress Test. The results will be announced in October.
The 2014 interest result is expected to turn out lower than that for 2013. The result on financial transactions will remain sensitive to the level of economic recovery in the Eurozone. In view of the prolonged uncertainties, the bank does not consider it wise to make a statement regarding the expected 2014 net profit.
BNG Bank has today published its Interim Report on http://www.bngbank.com. For further details, please refer to this publication.
This is an unofficial translation of the Dutch press release 'BNG Bank Halfjaarbericht 2014'. This translation is provided for convenience only. In the event of any ambiguity, the Dutch text will prevail.
For further information:
BNG Bank
Aart Rietveld, BNG Bank spokesman
PO Box 30305
2500 GH THE HAGUE
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.
Consolidated balance sheet
Amounts in millions of euros
30-06-2014 31-12-2013
ASSETS
Cash and balances with the central banks 1,375 1,467
Amounts due from banks 10,973 8,509
Financial assets at fair value through the income statement 3,938 3,530
Other financial assets 21,304 15,874
Financial assets available-for-sale 11,750 9,607
Loans and advances 90,740 92,074
Investments in associates and joint ventures 53 53
Property and equipment 17 17
Other assets 81 52
TOTAL ASSETS 140,231 131,183
LIABILITIES
Amounts due from banks 3,565 3,939
Financial liabilities at fair value through the income statement 3,715 3,553
Other financial liabilities 19,136 15,086
Debt securities 98,545 94,828
Funds entrusted 11,218 10,033
Subordinated debts 32 32
Other liabilities 411 282
Total liabilities 136,622 127,753
Share capital 139 139
Share premium reserve 6 6
Revaluation reserve 243 180
Cash flow hedge reserve 366 332
Other reserves 2,702 2,490
Net profit 153 283
Equity 3,609 3,430
TOTAL LIABILITIES 140,231 131,183
Consolidated income statement
Amounts in millions of euros
First half of 2014 First half of 2013
- Interest income 711 725
- Interest expenses 476 471
Interest result 235 254
Results from associates and
joint ventures 1 0
- Commission income 18 16
- Commission expenses 4 3
Commission result 14 13
Result on financial transactions -7 -49
Other results 1 2
TOTAL INCOME 244 220
Staff costs 18 18
Other administrative expenses 13 12
Depreciation 1 1
TOTAL OPERATING EXPENSES 32 31
Impairments 8 18
PROFIT BEFORE TAX 204 171
Taxation -51 -48
NET PROFIT 153 123
PRN NLD
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