Annual figures 2019: record year for NWB Bank

 

  • Record lending to Dutch public sector clients: €10.2 billion compared with €7.4 billion in 2018
  • Successful entry into funding market for sustainable energy projects and more financing for drinking water companies
  • Net profit of €94.5 million (2018: €99.7 million)
  • First Dutch issuer exceeding the €10 billion mark in SRI bond issuance
  • Complete picture of climate impact of loan portfolio nearly available

 

In 2019, NWB Bank issued record levels of lending to clients in the Dutch public sector. Total lending amounted to €10.2 billion, a significant increase compared with the €7.4 billion in 2018. The bank therefore managed to consolidate its position in the Dutch public sector and actively contributed to the energy transition. Net profit reached €94.5 million (2018: €99.7 million) and total assets stood at €96.2 billion (2018: €83.7 billion) at the end of December.

The sustainable water bank

“We are proud of the impact our sizeable increase in lending is having on the Dutch public sector’s social and sustainable investment agenda. As the sustainable water bank, we have primarily reinforced our position in the water sector, not only by providing the water authorities with financing but also by increasing our lending to water drinking companies. We also successfully entered the funding market for sustainable energy projects,” says Lidwin van Velden, chair of the managing board.

Healthy profits

Healthy profits continued to roll in, partly as a result of the high volume of lending. A one-off gain resulting from the release of the pension provision contributed to these profits. The net profit of €94.5 million was nonetheless lower than the €99.7 million recorded in 2018. This was expected and is mainly the result of the composition and outflow of higher-yielding positions in the bank’s loan and liquidity portfolio. The margins on short-term funding were also less favourable. The bank intends to pay out dividend of €55 million (2019: €20 million).

Sustainable funding

To keep up with the demand for financing, the bank raised €9.9 billion in long-term funding on the international capital market in 2019. Once again, 26% of the long-term funding was raised by issuing Socially Responsible Investing (SRI) bonds. Last year, the bank became the first issuer in the Netherlands to exceed the €10 billion mark in SRI bond issuance.

Assessing the impact of lending on the climate

In July 2019, NWB Bank endorsed the Dutch cabinet’s climate goals together with almost the entire Dutch financial sector. Earlier, NWB Bank joined the Partnership for Carbon Accounting Financials (PCAF). The bank has calculated the carbon footprint for 93% of its 2019 loan portfolio.

Outlook

The bank expects demand for new long-term financing in the public sector to increase slightly and will do its utmost to maintain an adequate level of lending. To underline its sustainability efforts, the bank wants to cover at least 25% of its funding requirements by issuing sustainable bonds again in 2020. Net profit will depend partly on the impact of new tax legislation. When this is not taken into account, the bank expects profits in the coming year to remain at or close to 2019 levels.

NWB Bank will publish its 2019 Annual Report on 16 April 2020.

KEY FIGURES (in millions of euros)

 

2019

2018

BALANCE SHEET

 

 

Long-term loans and advances (nominal value) 1

49,436

47,644

Equity 2

1,741

1,706

Tier 1 capital 2

2,050

2,018

Total assets

96,205

83,715

Risk-weighted assets

3,277

2,627

RESULTS

 

 

Net interest income

213

234

Results from financial transactions

-39

-48

Operating income

174

186

Operating expenses 3

27

22

Non-recurring income

11 4

-

Income tax

41

37

Bank tax and resolution levy

22

27

Net profit

95

100

RATIOS (%)

 

 

Tier 1 ratio 2

62.6 5

76.8 5

CET1 ratio 2

52.8 6

64.6 6

Cost/income ratio 7

15.5

11.8

Leverage ratio 8

15.4

-

Leverage ratio (not adjusted for promotional assets) 9

2.4

2.6

Liquidity Coverage Ratio (LCR)

204

222

Net Stable Funding Ratio (NSFR)

118

129

CSR

 

 

Volume of Green/Social Bond issuance

2,538

2,744

CO2 emissions from operating activities p.p. (in tonnes)

2.8

3.7

CO2 emissions loan portfolio (in kilotonnes)

2,636 10

-

 

1 loans including interest-bearing securities from regional authorities

2 including profit for the financial year less dividend

3 excluding bank tax and resolution levy

4 income as a result of changes to the pension scheme

5 61.4 excluding profit for the financial year (2018: 73.8)

6 51.6 excluding profit for the financial year (2018: 61.6)

7 excluding bank tax and resolution levy

8 including profit for the financial year less dividend, taking into account the proportional calculation for promotional banks

9 including profit for the financial year less dividend, not taking into account the proportional calculation for promotional banks

10 based on 93%  of the loan portfolio

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Simon Zwagemakers
Hoofd Legal & Corporate Affairs / Corporate Secretary
+31 6 574 579 06
+31 70 416 62 59
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