2021 Interim results

De Volksbank shows progress on its shared value scores linked to the new strategy for 2021 – 2025: ‘better for each other – from promise to impact’

• Customers: customer-weighted Net Promoter Score higher at +6 (year-end 2020: +2); increase in the number of active multi-customers to 978,000 (year-end 2020: 949,000)
  
• Society: climate-neutral balance sheet lower at 57%, due to a decrease of 9 percentage points following the first-time implementation of the PCAF methodology; excluding this impact climate neutrality improved to 66%
  
• Employees: Genuine attention KPI score at 7.8 (year-end 2020: 7.9)
  
• Shareholder: Return on Equity of 5.5% (2020: 5.1%)

Growth in current account customers, mortgages, SME loans, retail savings and assets under management

• Net growth in the number of current account customers by 61,000 to 1.72 million
  
• Residential mortgage portfolio, excluding IFRS value adjustments, slightly up to € 46.3 billion (yearend 2020: € 46.2 billion). Increase in new mortgage production to € 3.3 billion (first half of 2020: € 3.0 billion); market share of new mortgage loans lower at 4.9% (2020: 5.0%)
  
• SME loans up by € 44 million to € 768 million
  
• Retail savings up by € 2.6 billion to € 44.7 billion; market share higher at 11.0% (2020: 10.8%)
  
• Assets under management € 0.3 billion higher at € 4.2 billion

Net profit drops to € 94 million, driven by continued pressure on net interest income and higher operating expenses, partly offset by a reversal of impairment charges

• Net profit of € 94 million, 11% lower compared with the first half of 2020 (€ 106 million)
  
• Total income lower at € 417 million (first half of 2020: € 480 million), mainly driven by pressure on the net interest income
  
• Increase in operating expenses to € 322 million (first half of 2020: € 292 million); approximately half of the increase was due to higher staff costs related to the implementation of the new strategy and the other half to higher regulatory levies
  
• Reversal of impairment charges of financial assets of € 31 million (first half of 2020: a charge of € 45 million) as a result of a more positive macroeconomic outlook and higher house prices, despite a higher expert overlay

Strong capital position

• Common Equity Tier 1 capital ratio of 28.3% (year-end 2020: 31.2%); leverage ratio of 5.1% (year-end 2020: 5.2%)
  
• Intention to pay out remaining 2019 dividend and 2020 dividend for a total amount of € 249 million in October 2021; this will not impact our capital position

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