Half-year figures 2024: NWB Bank sees increase in public sector investments

In the first six months of 2024, our loan portfolio grew to a new record level of €55.9 billion. We lent a total of €4.4 billion to our clients which is considerably more than in the first six months last year. We raised €6.1 billion in funding on the international capital market, of which €3.9 billion with ESG bonds. Net profit for the first six months was €58 million and our capital and liquidity ratios remain as strong as ever.

 “We have seen public sector investments increase in the first half-year. As a bank of and for the Dutch public sector, we are pleased to contribute to the necessary transitions our society is facing by providing appropriate and attractive financing. We successfully consolidated our market share in financing the Dutch public sector, and have seen our loan portfolio grow to a new record level” says Lidwin van Velden, CEO of NWB Bank.

Lending

In the first half of 2024, we provided a total of €4.4 billion in financing to our clients in the Dutch public sector. This is significantly more than the €2.8 billion in the first half of 2023. The size of our loan portfolio grew further reaching a new record level of €55.9 billion at the end of June. We are particularly seeing strong growth in demand for loans from housing associations. This growth is strongly linked to the necessary investments for improving the sustainability of the existing housing stock as well as new construction, that, to a large extent, resulted from the National Performance Agreements concluded in 2022 between the housing sector, the Woonbond, municipalities and the Dutch State.

Funding

Over the past six months, we raised €6.1 billion of long-term funding on the international capital market. Almost 60% (€3.9 billion) of our funding we raised with ESG bonds. In total, we have raised almost €32 billion with our ESG bonds since 2014 and as a result we are still the largest issuer of such bonds in the Netherlands. As of today, more than 40% of our total outstanding funding considers ESG bonds.

Capital and liquidity ratios

Our capital and liquidity ratios remain as strong as ever. The Tier 1 ratio is 44.5% and the leverage ratio is 12.1% as of 30 June. Both are well above the minimum standards of 14.70% and 3% respectively. The Liquidity Coverage Ratio (LCR) and the Net Stable Funding Ratio (NSFR) are also well above the minimum requirement of 100% at 153% and 139% respectively.

Outlook

We expect to meet the financing needs of our clients in the Dutch public sector in the remainder of the year in the same socially responsible and sustainable way as in the first six months and we anticipate that the total size of our loan portfolio will continue to grow in the coming months.