NIBC reports solid performance with net profit of EUR 99 million in first half of 2024

• Solid performance with reported net profit of EUR 99 million, supported by higher net interest income and lower cost of risk, resulting in an annualised return on equity of 11%;
• Continued growth in core activities, with 1% growth in mortgages and 2% growth in key corporate asset classes. In addition, the financing platforms continued to report strong growth with a 7% increase in exposure;
• Through effective cost management, the cost/income ratio is maintained at 44% despite continued inflationary pressures;
• Strong capital position, with CET 1 ratio of 19.7%, following risk reduction through sale of the Shipping portfolio;
• Credit rating upgrades from both Fitch and Moody’s as business model has strengthened.

Statement of the CEO, Paulus de Wilt

“During the first half of 2024, NIBC has continued its development as an entrepreneurial asset financier. Although continued uncertainty regarding economic and political developments created a challenging environment for our clients, we have succeeded in finding ways to support their financing needs, evidenced by further growth of exposure in both mortgages and the asset based segments (excluding the sold Shipping portfolio). As announced in June, we successfully sold our Shipping portfolio, allowing us to sharpen our focus, further de-risk the balance sheet and provide a strong setting for further growth of the successful Shipping franchise under new ownership. Additionally, we have continued the controlled reduction of our non-core exposures. Recognising the steps we have taken to strengthen our business model, NIBC’s credit rating was upgraded by both Fitch (to BBB+ with a stable outlook) and Moody’s (to A2 with stable outlook).

I am also proud to share that NIBC has once again won a Golden Lotus award for its mortgage offering in recognition of our flexible and solution-driven approach to servicing our clients.

On the back of these developments, NIBC reports a solid financial performance, with a net profit of EUR 99 million (including a non-recurring gain of EUR 9 million net of tax). This was achieved through a stable net interest margin and operating expenses, despite inflationary pressures, and lower credit expenses.

As we continuously develop our product offering and investigate development opportunities across various business lines, this also means that, at times, specific product offerings may benefit from a new setting. In this context, NIBC is actively investigating strategic alternatives for both of its Platform activities. After a successful launch and continued growth of these alternative financing propositions, both offerings are now classified as held for sale, reflecting these strategic considerations.

On a personal note, this is my final press release on NIBC’s financial results, as I will be leaving the bank at the end of 2024. It has been a privilege and a pleasure to steer this entrepreneurial bank in its journey from a bank with a wide array of products and activities to the sustainable, focused asset financier it is today. I would like to express my heartfelt thanks to all my colleagues for their unwavering commitment and dedication. They are the foundation of NIBC’s execution power and ‘Think Yes’ mentality, with which we deliver value to our stakeholders.”

We refer to our Condensed Interim Report 2024 NIBC Holding N.V. published on our website for full details.

For our full press release, please refer to the Download below.