SNS Bank posts first half 2016 net profit of € 181 million

Banking with a human touch

• People-oriented: several banking industry-specific awards contributing to overall increased customer satisfaction scores
• Social: successful start of ‘Mortgage term monitoring service’
• Sustainable: balance sheet 23% climate neutral at the end of June (year-end 2015: 22%)

Commercial developments

• SNS Bank welcomed 101,000 new customers: net growth of 30,000
• Sharp increase in new mortgage production to € 1.5 billion (+67%);
  market share new retail mortgages higher at 4.8% (2015: 4.1%);
• Retail mortgage portfolio virtually stable at € 45.0 billion compared to year-end 2015
• Slight increase in retail savings balances to € 37.7 billion (+2%); stable market share of 10.8%

Financial performance

• Net profit of € 181 million (first half of 2015: € 244 million),
  negatively impacted by a swing of € 59 million net in unrealised results
  on mortgages and related derivatives
• Slightly lower net profit excluding one-off items of € 193 million
  (first half of 2015: € 197 million), mainly driven by lower net interest
  income and higher operating expenses, largely offset by a release from
  loan provisions
• Improved credit quality retail mortgage portfolio; strong decline in loans in arrears
• Adjusted Return on Equity of 11.5% (first half of 2015: 12.9%)
• Strong Common Equity Tier 1 ratio of 26.6% (year-end 2015: 25.3%); Leverage ratio: 4.8% (year-end 2015: 4.7%)

Update on strategy

• SNS Bank’s strategy aimed at creating value for all stakeholders
• Focus on implementation of strategic plan in coming years:
  strengthening of social identity, enhancing business operations by
  focusing on simplicity and efficiency and tightening our innovation
  policy as a 'smart adopter'