Financial

De Volksbank posts 2018 net profit of € 268 million

Banking with a human touch put further into practice and customer satisfaction increased

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Good progress in positioning as a social bank: various initiatives developed in sustainability and improving our customers’ financial resilience.

Developments shared value scores

  • Customers: improvement customer-weighted Net Promoter Score to -1 (year-end 2017: -3)
  • Society: 37% climate-neutral balance sheet (year-end 2017: 27%); introduction of a financial resilience score; realisation year-end 2018: 49, with a target score of 50 in 2020
  • Employees: decline in employee Net Promoter Score (eNPS) to -20 (year-end 2017: -2)
  • Shareholder: return on equity of 7.6% (2017: 8.7%), based on strong capital position

Continued growth in current account customers and mortgage portfolio

  • Net growth number of current account customers by 79,000 to 1.488 million; market share new current accounts of 24%
  • Increase in mortgage portfolio by € 1.3 billion to € 47.3 billion Market share new mortgages higher at 7.3% (2017: 6.8%);
  • increase in new mortgage production to € 5.9 billion (2017: € 5.5 billion)
  • Increase in retail savings by € 0.6 billion to € 37.4 billion; market share savings virtually stable at 10.6% (2017: 10.7%)

Lower net profit of € 268 million

  • Net profit of € 268 million, a decline of 19% compared to 2017 (€ 329 million); mainly driven by lower results on investments / financial instruments and a lower release of loan loss provisions
  • Total income of € 958 million, a € 70 million drop mainly as a result of a € 49 million lower result on investments and financial instruments (exceptionally high in 2017), modest decline in net interest income (by € 16 million, 2%)
  • Operating expenses excluding regulatory levies at € 562 million virtually equal to 2017 (€ 560 million); impact efficiency measures offset by higher expenses in connection with laws and regulations and compliance
  • Increase in efficiency ratio (excluding regulatory levies) to 58.7% (2017: 55.4%) driven by drop in income
  • Lower release of loan loss provisions of € 12 million (2017: release of € 24 million)

Unvaryingly strong capital position

  • Increase in Common Equity Tier 1 capital ratio to 35.5% (year-end 2017: 34.1%). Leverage ratio stable at 5.5%
  • Proposed dividend for 2018: € 161 million (pay-out ratio 60%)

Attachments

Press release 2018
Analyst presentation
Press presentation (in Dutch)

Infographic 
Factsheet 2018 (.xlsx)

Webcast press 
Analyst webcast

Jascha Hagendoorn

Woordvoerder

Sijmen Veenstra

Woordvoerder

Jacob Bosscha

Investor Relations

Davey Hak

Investor Relations