Financial results H1 2010: Credit Europe Bank NV net profit up to €49 million
02.09.2010
• Net profit increased to €49 million vs €28 million in H1 2009.
• Net fees and commissions to €38 million, up from €27 million in H1 2009 following increasing business volumes.
• Impairments down by 32% to €57 million compared to the level of €84 million in H1 2009.
• Cost-income ratio stable at 49%.
• Tier 1 ratio increased to 10.44% from 9.21% at the year-end 2009.
In the first half of 2010 Credit Europe Bank increased its net income by 75% to €49 million compared to H1 2009. This is the consequence of a decrease of impairments charges and an increase of net fee- and commission income, coupled with strictly controlled and managed operational expenses. The Tier 1 ratio increased from 9.21% at the end of 2009 to 10.44% at the end of H1 2010 due to the increase in net profit as well as due to an increase of €103 million perpetual Tier 1 capital while at the same time repaying subordinated loans for the same amount.
The bank is proud to report that it voluntarily applied the recent EU wide stress test exercise on its trading and loan book. The results suggest strong resilience. The estimated impact on the Tier 1 capital of a ‘zero-growth’ stress test is a drop of 0.6%-point on the 2011 estimated Tier 1 ratio, bringing the bank to a level of 11.2% at the end of 2011. This is a limited impact in comparison to the estimated EU wide impact of 2.0%-point, due to the fact that Credit Europe Bank has limited exposure to the countries where the impact of the stress test assumes to be most severe.
In July, Credit Europe Bank signed a one year term dual currency club loan for approximately US$ 200 million with the participation of 10 prominent international banks.
Operational highlights:
Corporate banking:
• The total trade finance volume increased more than 20% on average compared to the first half of 2009, including significant contributions of the subsidiaries in Switzerland and in the United Arab Emirates. This increase was achieved despite stable levels of commodity prices, and was the result of a strong focus on customer acquisition. In the same period, the net fee- and commission income on Corporate banking activities increased by 21% to €18.9 million.
Direct Retail Banking in Western Europe:
• The total savings and deposits portfolio in Germany, the Netherlands, Belgium and Malta amounted to €5.1 billion at the end of H1 2010 compared to €5.6 billion at the end of 2009, in line with the bank’s policy to diversify its funding structure and to reduce its excess liquidity level.
• In May, the renowned business magazine €uro and the German Institute for Social Sciences (S.W.I) announced the results of a test amongst more than 50 German banks. Credit Europe Bank’s Top Time Deposit was ranked in the top 5 of time deposits due to, amongst others, its good conditions and service.
Main developments in the subsidiaries:
• In Russia, Credit Europe Bank Ltd. successfully issued a US$ Eurobond. The bank priced a US$ 300 million Eurobond with a maturity of 3 years and a put option after 2 years at a coupon rate of 7.75%. At the moment of issuing, this was the lowest coupon rate printed by any Russian private bank this year.
• In Romania, Credit Europe Bank maintained its #1 position in credit card turnover with the CardAvantaj brand. The introduction of “@vantaj”, offering online payment of installments with CardAvantaj, has been awarded the ‘Best Banking Retail product’ by the Romanian media group FinMedia.
Please find further information on the balance sheet on http://www.crediteuropebank.com/fb/sites/com/en/downloads/download_files/financial_information/2010_1H_results_overview.pdf
Background on Credit Europe Bank
Credit Europe Bank NV, founded in 1994, is an international financial services group, ranked in the top 10 of Dutch banks with a total balance sheet of around 10 billion euro. Serving around three million customers worldwide with more than 5,000 employees working from close to 200 branches in 11 countries, the Bank’s mission is to offer tailor-made corporate banking services and easy-to-use and efficiently delivered retail products.
Further information:
Robert Bakker
T: + 31 20 357 8069 / + 31 6 5152 7441
Robert.bakker@crediteurope.nl
www.crediteuropebank.com