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De Volksbank posts 2016 net profit of € 329 million
Improvement in our banking franchise: 21% of new current accounts in the Netherlands opened at ASN Bank, Regiobank or SNS; higher market share new retail mortgages; stabilisation retail mortgage portfolio
Update on strategy
- SNS Bank N.V. renamed de Volksbank N.V. as from 1 January 2017, to
emphasise the course the bank has set to strengthen its identity as a
social, people-oriented and sustainable bank - Focus on optimising ‘shared value’ for customers, society, employees and our shareholder
Banking with a human touch
- Improvement in overall customer satisfaction score; several banking
industry-specific awards; successful rollout of ‘Mortgage term
monitoring service’ - Employee NPS of 30% (2015: 34%)
- 23% climate neutral balance sheet (2015: 20%)
Commercial developments
- De Volksbank welcomed 136,000 new current account customers: net growth of 88,000 (+7%)
- Sharp increase in new retail mortgage production to € 3.7 billion
(+76%); market share new retail mortgages higher at 5.7% (2015: 4.1%);
retail mortgage portfolio virtually stable at € 44.9 billion - 1% decrease in retail savings balances to € 36.6 billion; slightly lower market share of 10.7%
Financial performance
- Lower net profit of € 329 million (2015: € 348 million), impacted
by a swing in fair value movements of former DBV mortgages and related
derivatives (-€ 36 million) and other one-off items - The 2016 net profit includes a € 24 million net one-off provision for plans to improve operational efficiency
- Higher net profit excluding one-off items of € 354 million (2015: €
335 million), with a substantial release of loan provisions and higher
investment income more than compensating for the impact of lower net
interest income and higher regulatory levies - The release of loan provisions of € 68 million was mainly driven by
a sharp decline of loans in arrears (2015: impairment charges of € 37
million) - Adjusted efficiency ratio higher at 56.0% (2015: 53.4%) due to lower income; adjusted operating expenses down by 2%
- Adjusted Return on Equity of 10.3% (2015: 10.7%)
- Increase in Common Equity Tier 1 ratio to 29.2% (2015: 25.3%); leverage ratio: 5.2% (2015: 4.7%)
- € 135 million dividend payment for 2016 to NLFI proposed (2015: € 100 million)