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De Volksbank posts first half 2017 net profit of € 177 million
Increased customer appreciation and continued growth in current account customers and market share mortgages; good progress in the execution of our shared value strategy
Optimising shared value
- Continued focus on optimising shared value starting to yield results:
- Customers: Net growth current account customers by 42,000 to 1.37 million; improvement customer weighted Net Promoter Score to -4 (2016: -8)
- Collaboration agreement with Pivotus to contribute to our mission of banking with a human touch
- Data safety: no sale of customer data on an individual or aggregate level
- Society: 25% climate neutral balance sheet (2016: 22%)
- Shareholder: Return on Equity of 10.0% (first half of 2016: 10.8%)
Commercial developments
- Market share new retail mortgages higher at 6.8% (first half of 2016: 4.8%); sharp increase in new retail mortgage production to € 2.5 billion (+67%)
- € 0.4 billion increase in retail mortgage portfolio to € 45.3 billion (year-end 2016: € 44.9 billion)
- Market share new current accounts of 20% (first half of 2016: 25%)
- 2% increase in retail savings balances to € 37.4 billion; market share stable at 10.7%
Financial performance
- Net profit virtually stable at € 177 million (first half of 2016: € 181 million)
- Lower net profit adjusted for incidental items of € 178 million (first half of 2016: € 193 million) due to lower net release of loan provisions
- Net interest income 2% lower year-on-year; net interest margin virtually stable at 1.50%
- Adjusted cost/income ratio lower at 52.5% (first half of 2016: 54.2%) due to 5% lower adjusted operating expenses
- Net release of loan provisions of € 20 million (first half of 2016: € 45 million); 22% decrease in retail mortgage loans in arrears to € 0.5 billion
- Increase in Common Equity Tier 1 ratio to 32.6% (2016: 29.2%); leverage ratio: 5.5% (2016: 5.2%)
