Operating income

 

One of NIBC’s key priorities in 2009 was to ensure strong liquidity, enabling the bank to move swiftly to support its clients in the tough business environment. This led to decreased net interest income, especially in the first half of 2009. Since mid-2009, net interest income has been increasing again. Interest income picked up from EUR 4 million in the second quarter of 2009 and EUR 15 million in the third quarter of 2009 to EUR 29 million in the fourth quarter of 2009. Origination of loans is improving, with higher spreads, while costs of funds are diminishing.

 

Net fee and commission income held up well in 2009, totalling EUR 32 million. Net fee income from M&A increased by 11%.

 

Dividend income fell, reflecting both lower dividends from equity investments and a decrease in the Enhanced Investments portfolio in 2009, following the unwinding and repayment of a large part of this portfolio.

 

Net trading income increased from EUR 84 million to EUR 207 million in 2009. In both 2008 and 2009, the figures were strongly affected by the instability in the financial markets, resulting in less liquidity in certain asset classes and substantial credit spread widening.

 

Gains less losses from financial assets improved in the second half of 2009 compared to the first half, as markets started to recover.