Strong increase in loans and growth in the loan portfolio

  • The volume of new long-term loans granted amounts to €6.6 billionthe long-term loan portfolio increased to 87.8 billion euros.
  • The result of interest came to 220 million eurosthe net profit amounts to 206 million euros.
  • Strong capitalisation: Common Equity Tier 1 ratio of 37% and Tier 1 capital ratio of 40%.
  • €8.7 billion long-term financing has been raised, of which more 3.5 billion euros in the SDG bonds.

THE HAGUE, Netherlands, September 5, 2022 /PRNewswire/ — The first half of 2022 has been eventful. The impact of the Russian invasion of Ukraine and the consequences of the Covid-19 pandemic have had significant economic consequences, which have also affected our customers. Due to high inflation, the ECB has tightened its monetary policy and significantly higher interest rates apply.

Even in these difficult times, BNG Bank has proven to be a reliable and long-lasting partner to its clients in the public sector. We bring ideas to the social issues we face, and through our lending at attractive rates, we provide more than half of all lending in the public domain. In the first half of 2022, we granted €6.6 billion in long-term loans (first half of 2021: €5.6 billion). Our long-term loan portfolio increased by €0.7 billion at €87.8 billion. The increase in the long-term loan portfolio is mainly due to higher than expected demand, particularly from municipalities. Due to rising interest rates, some of our clients have decided to take out loans sooner than they originally planned.

Financial
BNG Bank has a healthy financial situation. In the first half of 2022, we achieved an interest rate result of 220 million eurosand our net profit for this period amounts to 206 million euros. The increase in net income (first half of 2021: 187 million euros) was mainly due to a reduction in provisions for expected credit losses and a higher result on financial operations.

BNG Bank continues to have a strong capital position, with a Common Equity Tier 1 capital ratio of 37% and a Tier 1 capital ratio of 40%. Thanks to this strong capitalisation, together with our low risk profile and our triple A ratings, our bonds remain attractive even in these uncertain times. In the first half of 2022, we raised €8.7 billion in long-term financing. This included the highly successful issuance of four new SDG bonds (linked to the Sustainable Development Goals) with a volume of over 3.5 billion euros.

Strategy
In the first half of 2022, BNG Bank continued to implement its “Our Road to Impact” strategy. Funding our clients’ transitions helps us achieve maximum social impact together. In order to strengthen our strategic partnership with our customers, it was decided to modify the commercial organization.

Making an impact through partnerships
Gita Salden, CEO of BNG Bank: “As a public bank, we have the same interests as our customers. BNG Bank wants to help make the Netherlands better and more attractive; We achieve this mainly through our loans, but also by connecting the various players in the public domain, drawing on our banking expertise. A good example is the prepaid card for Ukrainian refugees. In 225 municipalities of the NetherlandsBNG Bank’s prepaid card offers a solution for refugees from Ukraine. The debit card is an initiative of BNG Bank and was previously used by municipalities for the homeless. Thanks to good cooperation with the various parties involved, we were able to adapt the card for Ukrainian refugees in just a few weeks and quickly increase production.

Outlook for 2022
We expect to meet our annual goal of granting new long-term credit-free loans for a total amount of €9.8 billion. In the second half of 2022, we will also continue to optimize our organization in order to improve its alignment with the wishes of our customers. The measurement of the impact of our customers will be carried out for the second time. In addition, BNG Bank’s climate action plan will be published.

Read the interim report and underlying information on BNGBank.com.

BNG Bank is a committed and reliable financial partner that actively contributes to the creation of solutions to social problems in the public domain. In its activities, BNG Bank has chosen to focus on five SDGs: Good health and well-being (SDG 3), Quality education (SDG 4), Affordable and sustainable energy (SDG 7), Sustainable cities and communities (SDG 11 ) and Climate Action (SDG 13, in particular reducing CO2 emissions, limiting energy demand and increasing energy efficiency). BNG Bank is a strong player in the international capital market. Funding focuses on raising funds by issuing bonds, specifically SDG bonds. SDG bonds are used to finance sustainable, social and customer activities.

CONSOLIDATED RESULTS


Amounts in millions of euros

06/30/2022

31/12/2021

ASSETS



Cash and balances

25,350

9,264

Amounts owed by banks

155

163

Cash collateral

4,964

13,993

Financial assets at fair value through equity

1,136

1,383

Derivatives

4,318

5,685

Financial assets at fair value through equity

7,255

8,572

Interest-bearing securities at amortized cost

7,354

7,632

Loans and advances

90,440

89,738

Value adjustments on loans under portfolio hedge accounting

-3,013

13,555

other assets

233

64

Assets held for sale

8

TOTAL ASSETS

138 192

149,057




LIABILITIES



Amounts owed by banks

19,518

19,525

Cash collateral

1,093

984

Financial liabilities at fair value through profit or loss

221

310

Derivatives

8,128

16,935

Debt securities

97,591

101,355

Funds entrusted

6,597

4,525

Subordinated debt

37

36

Other liabilities

462

325

TOTAL RESPONSIBILITIES

133,647

143,995




EQUITY



Capital and realized reserves

3,972

3,881

Hybrid Capital

309

733

Revaluation reserve

60

83

Cash flow hedge reserve

6

1

Own credit adjustment

1

3

Cost of hedging reserve

-9

125

net profit

206

236


4,545

5,062

TOTAL RESPONSIBILITIES

138 192

149,057

CONSOLIDATED INCOME STATEMENT


Amounts in millions of euros

06/30/2022

06/30/2021

– Interest income

2,175

2,244

– Interest charges

-1,955

-2,016

Outcome of interest

220

228




– Commission income

11

ten

– Commission expenses

-2

-2

Result of commissions

9

8




Result on financial transactions

92

63

Participation results

ten

1

Other results

0

1

TOTAL INCOME

331

301




Personnel costs

-35

-25

Other administrative expenses

-18

-22

Depreciation

-1

-1

Other operating expenses

0

0

TOTAL OPERATING EXPENSES

-54

-48




Net impairment losses on financial assets

14

seven




Net impairment losses on associates and joint ventures

1

-0

Contribution to the resolution fund

-20

-2

Direct debit

TOTAL OTHER EXPENSES

-5

5




PROFIT BEFORE TAX

272

258




income tax expense

-66

-71

net profit

206

187

– of which attributable to holders of hybrid capital

23

21

– of which attributable to shareholders

183

166

SOURCEBNG Bank

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