NIBC posts strong performance in H1 2023 with EUR 103 million net profit and shows continued growth
Financial Press Release - 17 Aug 2023, 08:00 CEST
- Strong performance over the first half year with a net profit of EUR 103 million, and a return on equity of 10.9%;
- Dedicated to strategy execution, leading to continued growth across all core segments; Mortgages (+3%), Asset-Backed finance (+1%), and Platforms (+12%);
- Lower cost of funding resulting in a further increased net interest margin of 1.96%;
- Further enhanced efficiency, reflected by a cost/income ratio of 44%, supported by both higher revenues (+16%) and lower costs (-9%);
- Credit losses relatively stable at EUR 12 million, with reduced impairments in core portfolios; and
- Strong capital position with an increased CET 1 ratio of 18.6%, even after absorbing additional regulatory requirements.
Statement of the CEO, Paulus de Wilt
“During the first half of 2023, we have finalised our transition into an entrepreneurial asset-based financier, fully focusing on mortgages, asset-based finance in CRE, Infrastructure and Shipping and platform financing with Beequip and yesqar. Supported by our new brand positioning, we are looking forward to new opportunities to enable our clients to realise their ambitions through providing financing solutions for their assets.
In an economic environment that is still characterised by uncertainty, we are proud to report a strong performance. All core segments report continued growth of the portfolio, and we successfully reached agreement to sell both our CLO platform and our equity investment activities, further reducing non-core exposures and de-risking the balance sheet. This allows us to focus on our core activities and further explore the growth potential for these activities.
Against this backdrop, NIBC reports a strong first half year result. Driven by both an increase in operating income and lower operating expenses, net profit increased to EUR 103 million (including a non-recurring gain of EUR 7 million net of tax). Operating income benefitted from the continued improvement of our net interest margin, supported by improved margins on liabilities and increased volumes in core portfolios. Despite continuing inflation, we have been able to effectively reduce operating expenses, leading to a cost/income ratio of 44%, within the targeted range. Cost of risk remained relatively stable.
I am also pleased to report that these developments have led to positive rating actions, as Moody’s recently published its decision to upgrade NIBC’s long-term deposit and senior unsecured debt ratings to A3 and Fitch has improved its outlook for NIBC’s debt rating to positive, with affirmation of the BBB+ rating.
We continue to invest in improving the bank’s ability to work together with its clients to address ESG opportunities and challenges, whether it is via product development to help finance the energy transition or via efficient information sharing to meet increasing reporting requirements.
Being able to both complete the transformation into a focused asset-based financier and report strong results in the current challenging macro-economic environment makes me proud of our organisation and grateful for the commitment and dedication of our people to translate our entrepreneurial spirit into daily action, ensuring that we continue to support our clients to realise their ambitions.”
NIBC Holding N.V. – Key Figures
We refer to our Interim Report 2023 NIBC Holding N.V. published on our website for full details.