SNS Bank posts 2015 net profit of € 348 million

The 2015 full-year results of SNS Bank have been published on Thursday 3 March 2016. SNS Bank posts 2015 net profit of € 348 million and passes 3 million customer milestone.

Banking with a human touch

• People-oriented: overall improvement in customer and employee satisfaction levels
• Social: introduction of 'mortgage term monitoring service'
• Sustainable: SNS Bank targets carbon neutral balance sheet in 2030

Commercial developments

• SNS Bank welcomed 254,000 new customers: net growth of 119,000
• Market share new current accounts at 25% (2014: 21%)
• Market share new retail mortgages slightly higher at 4.1%; sharp increase in new mortgage production to € 2.1 billion (+35%)
• Decline retail mortgage portfolio to € 45.0 billion due to higher
  redemptions; market share on a portfolio basis slightly lower at 6.9%
• Retail savings balances increased to € 36.9 billion (+3%); market share up slightly to 10.9%

Financial performance

• Higher net profit excluding one-off items of € 335 million (2014: € 294 million), mainly driven by lower loan impairment charges
• Increase in net profit to € 348 million (2014: € 151 million),
  impacted by swing in one-off items (one-off items in 2014 included a
  resolution levy on Dutch banks and a goodwill impairment)
• Higher adjusted efficiency ratio of 53.4% (2014: 44.7%), mainly due
  to higher costs related to increased mortgage activities, compliance
  with the new regulatory and supervisory environment and the
  disentanglement from SNS REAAL
• Improved credit quality retail mortgage portfolio: strong decline in loans in arrears
• Adjusted return on equity of 10.7%, in line with 2014
• SNS Bank resumes dividend and proposes payment to NLFI of € 100 million

Capital ratios

• Strong Common Equity Tier 1 ratio of 25.3% (year-end 2014 on a stand-alone basis: 18.3%)
• Increase in leverage ratio to 4.7% (year-end 2014 on a stand-alone basis: 3.8%)
• SNS Bank successfully re-accessed capital markets with the issue of
  € 500 million Tier 2 notes in October 2015, to strengthen and diversify
  its capital base

Disentanglement SNS REAAL and transfer SNS Bank to Dutch State

• Disentanglement of SNS Bank from SNS REAAL and transfer to the Dutch State completed on 30 September 2015
• Loan to VIVAT repaid before year-end 2015; credit facility to SNS REAAL terminated in February 2016
• NLFI advice on the privatisation of SNS Bank to the Minister of Finance no sooner than mid-2016