THE HAGUE, The Netherlands - In the first half of 2009 the net profit of Bank Nederlandse Gemeenten (BNG) worked out at EUR 114 million (2008: EUR 73 million). This outcome was mainly caused by a higher interest result. The interest result is expected to decrease in the second half of 2009 to a more normal level for BNG. Despite all uncertainties, the bank expects to realize a higher result than for the previous financial year.
The increased uncertainties dampened the investments of housing associations and healthcare institutions in the first half of 2009. This was partly reflected in a strongly reduced demand for long-term lending. Compared to the same period in 2008 the total volume of new long-term lending declined in 2009 by EUR 2.1 billion to EUR 3.1 billion. The bank’s market shares, however, stabilized at the high level of the previous years.
Short-term lending, by contrast, increased considerably. The average short-term lending to clients rose by EUR 1.5 billion to over EUR 5.5 billion compared to the first half of 2008. Alongside the conditions in the financial markets and their impact on the rates for long-term lending, the increase in new short-term lending is related to the fact that municipalities and provinces are anticipating the sale of shares in Nuon and Essent. Ahead of the receipt of the sale proceeds, the local government involved showed a preference for short-term credit.
The safety of the BNG balance sheet is being sought more than before for the temporary placement of surplus funds. In the first half of 2009 temporary deposits at BNG increased by EUR 1.4 billion to EUR 7.9 billion.
The interest result is expected to decrease in the second half of 2009 to a more normal level for BNG. Due to the prevailing market conditions, the bank made more use of relatively short-term funding in the period under review than in previous years to meet the clients’ funding requirements.
BNG’s shareholders are exclusively Dutch public authorities. The bank’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 funds transfers to consultancy, electronic banking, investments and asset management. The bank also participates in public-private partnerships (PPPs).
CONSOLIDATED BALANCE SHEET AS OF JUNE 30, 2009 In millions of euros 30/06/2009 31/12/2008 Assets Cash and cash equivalents 2,005 497 Banks 7,944 8,956 Loans and advances 76,811 75,699 Financial assets at fair value through the income statement 2,637 3,001 Financial assets available for sale 5,111 5,185 Other financial assets 7,371 7,695 Associates and joint ventures 108 105 Property and equipment 24 24 Other assets 413 203 Total assets 102,424 101,365 Liabilities Banks 4,366 3,285 Funds entrusted 7,850 6,439 Subordinated loans 175 170 Debt securities 77,767 79,157 Financial liabilities at fair value through the income statement 514 791 Other financial liabilities 8,541 9,359 Other liabilities 1,216 185 Total liabilities 100,429 99,386 Share capital 139 139 Share premium reserve 6 6 Revaluation reserve (45) (29) Currency translation account (11) (3) Other reserves 1,792 1,708 Net profit 114 158 Equity 1,995 1,979 Total liabilities and equity 102,424 101,365 CONSOLIDATED INCOME STATEMENT In millions of euros First half of First half of 2009 2008 Interest income 1,610 2,154 Interest expenses 1,435 2,035 Interest result 175 119 Income from associates and joint 1 2 ventures Commission income 19 13 Commission expenses 3 2 Commission result 16 11 Result financial transactions (23) (19) Foreign exchange result (1) 0 Other income 2 5 Income from operating activities 170 118 Staff costs 17 16 Other administrative expenses 12 13 Staff costs and other administrative 29 29 expenses Depreciation 1 1 Operating expenses 30 30 Profit before tax 140 88 Taxation 26 15 Net profit 114 73
Executive board C. van Eykelenburg, Chairman J.J.A. Leenaars J.C. Reichardt Supervisory board H.O.C.R. Ruding, Chairman Y.C.M.T. van Rooy, Vice-Chairman (as well as Secretary) R.J.N. Abrahamsen H.H. Apotheker H.G.O.M. Berkers S.M. Dekker W.M. van den Goorbergh R.J.J.M. Pans A.G.J.M. Rombouts
Source: Bank Nederlandse Gemeenten
For further information: Bank Nederlandse Gemeenten, Charro Dammers, Head of Marketing and Communications, P.O. Box 30305, NL - 2500 GH THE HAGUE, T +31(0)70-3750-609, F +31(0)70-3655-178
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