Targets and performance in 2009

 

• Growing the corporate loan book: we increased new corporate loan origination, which accelerated in the second half of the year. New corporate loan production was three times higher in the second half of 2009 than in the first half;

 

• Funding diversification and sound liquidity position: we expanded NIBC Direct into Germany and grew it within the Netherlands and Germany to a level of EUR 3.7 billion by 31 December 2009. We raised an additional EUR 5 billion of funding under the Dutch State’s Credit Guarantee Scheme;

 

• Strong capitalisation: we successfully maintained a strong Tier-1 ratio far above 10%, ending the year with our Tier-1 ratio at 16.2%. This, along with our core Tier-1 ratio of 13.6% and BIS ratio of 18.4%, is testimony to our healthy capital position;

 

• Cost control: we maintained our focus on operational efficiency and lowered costs further. Expenses fell by 15% from EUR 181 million in 2008 to EUR 154 million in 2009, though we are growing our business again and began hiring staff at the beginning of the year;

 

• Credit risk control: we maintained tight credit risk control, keeping a close watch over our credit portfolios. The economic dip caused substantial impairments, although the level of impairments on corporate loans fell significantly to EUR 18 million in the second half of 2009 from EUR 41 million in the first half;

 

• Enhanced client focus: we sharpened our client focus by embedding our two-pillar strategy and through initiatives such as an internal and external perception study. We conducted an intensive review to see how we can become even more client-focused in our products and services, and moved fast to implement its recommendations. To increase our focus on clients and market penetration, a Merchant Banking Advisory Board and non-executive vice-chairmen roles were initiated in early 2010, following the German Beirat initiative in 2009; and

 

• Expansion in Germany: we grew in Germany both in terms of client transactions and through the launch of NIBC Direct. We retain our aim of building Germany into a second home market. Ed Langendam, a banker with extensive experience in the German market, was appointed Country Manager Germany as successor to Jeroen van Hessen, who joined NIBC’s Managing Board.