Letter from the CEO
NIBC’s Managing Board: Kees van Dijkhuizen, Rob ten Heggeler, Jeroen Drost, Jan Sijbrand, Jeroen van Hessen
For NIBC, 2009 was all about sharpening the focus on our clients. In a year that saw the crisis subside somewhat, we saw business activity begin a cautious revival. Client business picked up pace as the year progressed: corporate credit drawn in the second half of 2009 was three times higher than in the first half.
Sustainable business can only be achieved by building long-term relationships with clients. Enhancing our client focus was NIBC’s top priority in 2009. It found expression in initiatives such as refining our mission, ambition and positioning, creating a coordinated multi-product approach in order to service our clients better, and boosting our Managing Board with high-calibre new members.
To help us further improve our client service, we carried out an internal and external perception study last summer and launched an intensive six-week internal review in the autumn. We maintained the momentum when that project ended: many of its recommendations have already been implemented across the bank.
A bank has little to offer clients without liquidity, of course. To enable us to support our clients swiftly and effectively in the tough business environment, we focused strongly on ensuring ample liquidity. By raising liquidity we reduced our short-term profitability; but it was a price worth paying for long-term stability.
The second half 2009 profit of EUR 29 million, was up 93% compared with the profit in the first half of the year. All in all, we realised four profitable quarters in 2009. On a yearly basis profit decreased from EUR 92 million to EUR 44 million, whereby the profit of 2008 was more than fully realised in the (pre-Lehman) first half of 2008.
We put our liquidity to work for our clients in a diverse range of major transactions across our sectors, disciplines and geographies. For some deals, such as loans to shipping company Vroon Group and to retailer Jumbo for its acquisition of Super de Boer, we used the Dutch government’s ‘Garantie Ondernemingsfinanciering’ facility, aimed at stimulating lending to Dutch companies.
At the same time, we further diversified our funding base, maintained our high capitalisation and continued to emphasise operational efficiency and firm cost control.
We devoted significant effort last year to preparing to ensure compliance with the new Dutch Banking Code, a voluntary code of conduct to strengthen corporate governance that took effect on 1 January 2010. Revising our remuneration policy was part of this. We now have a sustainable remuneration policy that firmly supports our client-oriented strategy.
As always, nothing would have been possible without our motivated and talented employees. I extend my heartfelt thanks to them for their hard work in 2009. And I am delighted to have been able to welcome Rob ten Heggeler and Jeroen van Hessen, two highly experienced client-focused bankers, to our Managing Board last year.
NIBC celebrates its 65th anniversary this year – a fitting moment to reflect on how we have built on our strengths since our origins in 1945. We have successfully reshaped NIBC in recent years as a more traditional bank, sharpening our strategy to enhance client focus and winding up non client-related portfolios. NIBC is devoting ever increasing attention to corporate social responsibility. We enter 2010 with the basis, focus and momentum to be as successful as we can in an environment that remains unpredictable.
Now, more than ever, we are clearly focused on our core strengths and our mission: to be the bank of choice for decisive financial moments. Just as in the last 65 years, NIBC will be there for its clients in 2010 and beyond.
On behalf of the Managing Board,
The Hague, 8 March 2010
Jeroen Drost
Chief Executive Officer,
Chairman of the Managing Board
