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


The 2016 half-year results of SNS Bank have been published on Thursday 25 August 2016. SNS Bank posts a 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'
In the first half of 2016, we continued to translate our vision on people-oriented, social and sustainable banking into useful products and services, leading to a further improvement of our customer experience. Our customer base continued to increase, driven by growth in new current accounts. One in four new current accounts in the Netherlands was opened at one of SNS Bank’s brands.

New mortgage production increased sharply and our market share in new mortgage production is developing towards target levels. Our capital position remained strong and we posted a solid net profit. Going forward, we will fully focus on the implementation of our updated strategic plan. Our key priorities are the strengthening of our social identity, further enhancing our business operations and tightening our innovation policy.
Maurice Oostendorp, directievoorzitter van de Volksbank


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