2020 Results

De Volksbank shows robust scores on its shared value ambition also during the Covid-19 crisis

Developments in shared value scores:

• Customers: customer-weighted Net Promoter Score to +2 (year-end 2019: 0)
• Society: 59% climate-neutral balance sheet (year-end 2019: 44%); Financial Confidence Barometer higher at 51% (year-end 2019: 48%)
• Employees: ‘Genuine attention’ KPI up to 7.9 (year-end 2019: 7.7)
• Shareholder: adjusted Return on Equity of 6.1% (2019: 7.7%)

Growth in current account customers and savings deposits, decrease in mortgage portfolio

• Net growth in the number of current account customers by 89,000 to 1.7 million; market share of new current accounts of 19% (2020: 21%)
• Decrease in mortgage portfolio by € 0.4 billion to € 47.8 billion due to sharply higher repayments. Increase in new mortgage production to € 5.9 billion (2019: € 5.5 billion); market share of new mortgage loans lower at 5.0% (2019: 6.1%)
• Increase in retail savings by € 3.7 billion to € 42.1 billion; market share of retail savings higher at 10.8% (2019: 10.6%)

Drop in net profit to € 174 million; impairment charges sharply higher on the back of the Covid-19 pandemic; restructuring provision for the implementation of the new strategy for 2021-2025

• Net profit of € 174 million, 37% lower compared with 2019 (€ 275 million)
• Restructuring provision of € 45 million for the introduction of a new (‘agile’) way of working as part of the implementation of the strategy for 2021-2025
• Adjusted for the impact of the restructuring provision, net profit amounts to € 208 million
• Total income virtually flat at € 923 million (2019: € 929 million); lower interest income almost
  entirely compensated by higher treasury results and results on the sale of bonds
• Increase in adjusted operating expenses excluding regulatory levies to € 557 million (2019: € 533 million), mainly attributable to higher staff and consultancy costs
• Impairment charges of financial assets of € 38 million (2019: a reversal of € 7 million) as a result of more prudent economic scenarios for the future due to the Covid-19 pandemic

Capital position as strong as ever

• Common Equity Tier 1 capital ratio of 31.2% (year-end 2019: 32.6%); leverage ratio of 5.2% (year-end 2019: 5.1%)
• Proposed dividend for 2020: € 104 million (50% of adjusted net profit; 60% of net profit)

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