BNG Profit EUR 278 Million
The Hague, The Netherlands, March 8, 2010 (ots/PRNewswire)
BNG closes the 2009 financial year with a net profit of EUR 278 million (2008: EUR 158 million). As a result of the low money market interest rate, interest results have risen by EUR 60 million. The increased marketability of interest bearing securities has lead to an increase of the result financial transactions by EUR 104 million. The proposed dividend payout to shareholders amounts to EUR 139 million.
BNG is the bank of and for authorities and public sector institutions. Despite difficult market conditions, during the year under review, the bank continued to offer uninterrupted lending at competitive rates to its core client groups - local authorities, housing associations and health care and educational institutions - and strengthened its market position.
The long-term lending amounts to EUR 8.6 billion (2008: EUR 10.5 billion). This development is a repercussion of clients' reduced willingness to invest as a result of the uncertain economic developments. In contrast, the short-term lending offered to clients in 2009 averages EUR 5.8 billion (2008: EUR 3.9 billion). Anticipating the economic recovery and making use of the very low rates for short-term lending, local authorities in particular have financed themselves short-term to a greater extent than in the past.
The cautious but continuous recovery of confidence in financial institutions during 2009 has increased the activity on the international capital markets. This had a favourable effect, particularly in the second half of 2009, on the amount of the spreads payable by the bank for credit and liquidity risks and on the variation in maturity of new issues. In 2009, BNG attracted EUR 14.1 billion in long-term funding for long-term lending and refinancing (2008: EUR 13.1 billion). The triple A ratings of the bank were reconfirmed and investor confidence in BNG has been maintained. This was amongst others reflected in relatively favorable purchase prices. That benefit was transferred to clients in their rates.
BNG is confidently looking forward to 2010. The interest result is expected at about the level of 2009. However, given the fragile economic recovery, the increased volatility of results and all of the remaining uncertainties, the bank does not consider it wise to make a statement about the 2010 net profit.
On 29 April 2010 BNG will publish its Annual Report 2009 on its investors site (http://www.bng.com).
CONSOLIDATED INCOME STATEMENT 2009
in millions of Euros
2009 2008
- Interest income 2,628 4,524
- Interest expenses 2,291 4,247
Interest result 337 277
Income from associates and 2 (1)
joint ventures
- Commission income 36 25
- Commission expenses 6 5
Commission result 30 20
Results financial transactions 40 (64)
Foreign exchange results 0 2
Other income 2 9
Total income 411 243
- Staff costs 35 32
- Other administrative expenses 24 27
Staff costs and other administrative 59 59
expenses
Depreciation 2 2
Operating expenses 61 61
Profit before tax 350 182
Taxation (72) (24)
Net profit 278 158
CONSOLIDATED BALANCE SHEET AS OF 31 DECEMBER 2009
in millions of Euros
Assets 31/12/2009 31/12/2008
Cash and cash equivalents 655 497
Banks 7,683 8,956
Loans and advances 79,305 75,699
Financial assets at fair value
via the income statement 2,983 3,001
Financial assets available
for sale 5,531 5,185
Other financial assets 8,002 7,695
Associates and joint ventures 106 105
Property and equipement 23 24
Other assets 208 203
Total assets 104,496 101,365
Liabilities
Banks 5,615 3,285
Funds entrusted 7,070 6,439
Subordinated loans 174 170
Debt securities 79,935 79,157
Financial liabilities at fair
value via the income statement 351 791
Other financial liabilities 8,854 9,359
Other liabilities 244 185
Total liabilities 102,243 99,386
Equity 2,253 1,979
Total liabilities and equity 104,496 101,365This is an unofficial translation of the press release Winst BNG EUR 278 miljoen which is provided for convenience only. In the event of any ambiguity, the Dutch text will prevail.
Contact:
CONTACT: For further information contact: BNG, Aart Rietveld,
BNGspokesman, Postbus 30305, 2500 GH THE HAGUE, T +31-70-3750-609,
Emc@bng.nl.