NWB achieves modest profit with increased lending in 2008
On the basis of provisional figures for 2008, Nederlandse Waterschapsbank N.V. (NWB) is expecting a profit of approximately EUR 5 million. This means a considerable fall compared with the EUR 70 million profit for 2007. Excluding the unrealised fair value results, however, the provisional figures for 2008 show an increase, with the realised profit (before income tax) increasing to almost EUR 114 million (2007: EUR 101 million). This increase by more than 12% affirms that the Bank's core banking operations have developed satisfactorily.
The unrealised fair value results were mainly caused by the extreme increase in interest rate spreads for central and local authorities, owing to the crisis on the international capital market. For example, approximately EUR 65 million was taken to profit because of a revaluation of State-guaranteed securities.
Despite the financial crisis, the volume of the Bank's lending - over EUR 7 billion in 2008 - was above the record level achieved in the previous year. NWB's market share in the housing corporations, healthcare institutions and government institutions sectors rose once again in 2008.
NWB's solvency remained high. Based on provisional figures, equity amounted to over EUR 1 billion at year-end 2008. This includes an unrealised revaluation of EUR 22 million negative on a portfolio of Dutch government bonds. The BIS Tier-1 ratio for NWB's solvency is approximately 60%, which is very high, by prevailing banking industry standards. The Bank has been granted AAA ratings by both Moody's and Standard & Poor's.
The final annual figures will be published on Monday 9 March 2009.
The Hague, 8 January 2009
