INVESTORS SITEPress releases
Interim figures 2010
BNG maintains profit level at EUR 110 million
BNG maintains its stable course despite the continuing turbulence in the financial markets. The net profit for the first half of 2010 was EUR 110 million (2009: EUR 114 million). Positive factors were the higher interest result and an incidental tax gain. The unrealized result financial transactions was negative, mainly due to the atmosphere of crisis that surrounded the southern Eurozone countries in the second quarter.
The volume of new long-term lending increased relative to the first half of 2009 by EUR 4.2 billion to EUR 7.3 billion. Clients benefited from exceptionally low interest rates, especially in the very long segment. The short-term lending remained at about the same level. Compared with the second half of 2009, average short-term lending to clients fell by just EUR 0.1 billion to EUR 5.7 billion.
In the first half of 2010, BNG raised EUR 9.6 billion in long-term funding (2009: EUR 7.6 billion). The weighted average maturity of the total long-term funding rose by 2.3 years to 7.0 years compared with the full year 2009. As a result of the large volume of funding and the relatively long maturities, BNG’s liquidity profile improved further in the period under review.
The interest result for the first half of 2010 amounted to EUR 202 million (2009: EUR 175 million). Significant factors in the increase were the larger long-term loan portfolio and the continuing steep yield curve.
In 2010 BNG, acting in consultation with the tax authorities, adopted IFRS valuations for financial instruments to determine the tax returns. This was done with retroactive effect to 2005 and had a non-recurring positive effect of EUR 10 million on taxation.
The result financial transactions was EUR 54 million negative in the period under review (2009: EUR 23 million negative). This was mainly due to a net unrealized loss of EUR 43 million (2009: EUR 20 million negative) on interest-bearing securities and structured loans held by the bank.
The reason was the turmoil in the capital markets caused by the sovereign debt problems of the southern Eurozone countries. The creditworthiness of the underlying portfolio remains high. The future cash flows are not in doubt.
The outlook for the second half of 2010 cannot be separated from the current uncertain market conditions and their effects on the confidence in as well as on the pace of the economic recovery. Given the fragile economic recovery, the increased volatility of results and all the other uncertainties the bank does not consider it wise to make a statement about the 2010 net profit.
The bank’s shareholders are Dutch public authorities exclusively. BNG’s clients are comprised of local authorities and public sector institutions in the areas of housing, healthcare, education and public utilities. BNG provides customized financial services ranging from loans and advances, funds transfers and electronic banking to consultancy and asset management. The bank also participates in public-private partnerships.
/ / / / / / / / / /
For further information:
BNG
Aart Rietveld, spokesman BNG
P.O. Box 30305
2500 GH THE HAGUE
Complete Press Release and Interim Report
- Press Release Interim Figures BNG 2010 (Pdf)
- Interim Report (Pdf)
List
