Targets 2010 and outlook

The global economy is tiptoeing back to health, but remains vulnerable. It is unclear how much of the economic recovery we saw in 2009 is due to the policy stimulus measures implemented by governments and central banks. As these measures are withdrawn, the fragile recovery could be undermined. Potential increases in unemployment could hit consumption and with it the performance of companies in 2010.

It looks likely that 2010, like 2009, will be a transitional year on the way to what some have termed the ‘new normal’ – a more sustainable economic environment of lower asset prices, slower growth, more expensive credit and tighter liquidity.

With our strong capital buffers and sound liquidity position, we at NIBC are fit for the future and eager to participate in carefully-chosen transactions and arrange crystal-clear solutions for our clients.

Targets

To increase the number of client transactions and grow our corporate loan book;
To maintain our policy of funding diversification and strong liquidity position;
To keep our excellent Tier-1 ratio;
To maintain tight credit risk control and optimise the recovery from any asset that becomes distressed;
To improve the composition of our operating income by increasing stable components such as interest income and reducing volatile elements such as trading income;
To improve employee engagement, which we will measure in 2010;
After moving early to cut costs by more than 25% in the past two years, to selectively grow the business in 2010 without sacrificing cost prudence; and
To expand further in Germany with the longer-term aim of building it into a second home market.

The Hague, 8 March 2010

Managing Board

Jeroen Drost, Chairman, Chief Executive Officer

Kees van Dijkhuizen, Vice-Chairman, Chief Financial Officer

Rob ten Heggeler, Member

Jeroen van Hessen, Member

Jan Sijbrand, Member, Chief Risk Officer