The Hague, August 17, 2023 – NIBC Holding N.V. has reported a robust performance in the first half of 2023, with a net profit of EUR 103 million and a remarkable return on equity of 10.9%. This achievement reflects NIBC’s unwavering dedication to strategy execution, resulting in continued growth across all core segments: Mortgages (+3%), Asset-Backed Finance (+1%), and Platforms (+12%).
Financial Strength and Efficiency
One of the key highlights of NIBC’s H1 2023 performance is its lower cost of funding, which has led to a further increased net interest margin of 1.96%. This demonstrates NIBC’s ability to optimize its financial operations for the benefit of both the organization and its clients.
Moreover, NIBC has significantly enhanced its efficiency, boasting a cost/income ratio of 44%. This improvement is underpinned by higher revenues (+16%) and lower costs (-9%), showcasing the bank’s commitment to delivering value while maintaining a lean operation.
Stability in Uncertain Times
In an economic environment still marked by uncertainty, NIBC’s CEO, Paulus de Wilt, expressed pride in the bank’s strong performance. All core segments have reported continued portfolio growth, underscoring NIBC’s resilience and adaptability in the face of economic challenges.
Additionally, NIBC successfully reached agreements to sell its CLO platform and equity investment activities. These strategic moves align with NIBC’s goal of reducing non-core exposures and de-risking the balance sheet, allowing the bank to focus on its core activities and explore their growth potential.
Positive Credit Environment
NIBC’s credit losses remained relatively stable at EUR 12 million, with reduced impairments in core portfolios. This reflects the bank’s proactive risk management and its commitment to maintaining a sound credit environment for its clients.
Strong Capital Position
NIBC continues to maintain a robust capital position, with an increased CET 1 ratio of 18.6%. Even after absorbing additional regulatory requirements, the bank remains well-capitalized, providing stability and confidence to its clients.
Recognized by Rating Agencies
NIBC’s strong performance and strategic actions have not gone unnoticed by credit rating agencies. Moody’s recently upgraded NIBC’s long-term deposit and senior unsecured debt ratings to A3. Fitch, on the other hand, improved its outlook for NIBC’s debt rating to positive while affirming the BBB+ rating. These positive rating actions affirm NIBC’s commitment to financial excellence and long-term stability.
Commitment to Sustainability
NIBC remains dedicated to addressing environmental, social, and governance (ESG) opportunities and challenges. The bank actively collaborates with clients to support the energy transition through innovative product development and efficient information sharing to meet increasing reporting requirements.
A Promising Future
CEO Paulus de Wilt summarized NIBC’s journey in H1 2023 by stating, “Being able to both complete the transformation into a focused asset-based financier and report strong results in the current challenging macro-economic environment makes me proud of our organization and grateful for the commitment and dedication of our people.”
NIBC’s transition into an entrepreneurial asset-based financier, with a strong focus on mortgages, asset-based finance in CRE, Infrastructure and Shipping, and platform financing with Beequip and yesqar, sets the stage for exciting growth opportunities. This shift aligns with NIBC’s new brand positioning, enabling the bank to provide financing solutions for client assets more effectively.
In conclusion, NIBC Holding N.V.’s outstanding performance in H1 2023, along with its strong financial position and strategic vision, signals a promising future. The bank’s commitment to sustainability and resilience in the face of economic uncertainty reaffirms its role as a trusted partner for clients and a key player in the financial industry.
For more details and comprehensive financial information, please refer to NIBC’s Interim Report 2023 on their website.
NIBC is the entrepreneurial asset financier for companies and individuals, providing financing solutions for a wide range of assets, including private housing, commercial real estate, vessels, infrastructure, cars, and equipment. With over 75 years of experience, NIBC is renowned for its entrepreneurial spirit and commitment to making a difference for clients and society.
Headquartered in The Hague, the Netherlands, NIBC serves clients internationally with a focus on Europe. The bank’s long-term relationships, knowledge, and expertise have contributed to its position as a professional and reliable partner in the financial industry. Learn more about NIBC at www.nibc.com.
This press release may include forward-looking statements that are subject to various risks and uncertainties, which could cause actual results to differ materially from those expressed in the statements. NIBC Holding N.V. undertakes no obligation to update or revise any forward-looking statement to reflect events or circumstances that may arise after the date of this release.