Our client coverage teams play a pivotal role. They consult closely with clients to understand their needs, then assemble tailored teams of NIBC bankers across multiple borders to ensure those needs are met. Contrary to some of its larger rivals, NIBC provides experienced teams of senior advisors for every deal, regardless of the size of the client.
Highlights 2007
- Profit after tax from continuing operations of EUR 242 million, an increase of 4%;
- Net profit attributable to parent shareholders at EUR 98 million;
- NIBC sold its US sub prime-related portfolio in Q3;
- Tier-I ratio of NIBC Bank remains stable at a strong level of 11.7%.
Behind the numbers
2007 was a challenging year for NIBC and the banking industry as a whole. The instability in the credit markets had a major impact on the pricing of risk and the number of transactions coming to market.
In August NIBC sold its entire US sub prime-related portfolio, removing any further losses from this area of the business. Also in the second half of 2007, the US commercial real estate securities were transferred by NIBC Bank to NIBC Holding. In NIBC Bank, the results on both these portfolios are presented as discontinued operations.
The bank continued to execute transactions successfully while reducing its credit and market risk and diversifying its business mix to more liquid assets. Despite these challenging transitions, NIBC’s core business operations delivered a robust performance during the year.
Overall performance in 2007 from continuing operations showed a healthy underlying performance. Profit after tax from continuing operations grew 4% to EUR 242 million compared to 2006, while net profit attributable to parent shareholders declined to EUR 98 million.
The positive performance of our continuing operations further underscores NIBC’s commitment to income diversification and successful execution. Additionally, NIBC maintained a strong Tier-I ratio of above 10% throughout the year. We also made significant headway in the key growth areas where we have implemented important business initiatives.
Business highlights
In 2007 NIBC placed specific focus on further developing the following activities:
- Germany: Since opening an office in Frankfurt in 2005, NIBC has seen its Germany office grow from strength to strength. With activities in the product areas of leveraged finance, infrastructure, residential and commercial real estate finance and private equity and mezzanine finance, our performance in the German market has exceeded expectations and will continue to be a strong area of focus going forward.
- Alternative Investment Management: In Investment Management, NIBC continued to develop its alternative asset management activities. This was exemplified by the successful launch of the NIBC European Infrastructure Fund I, NIBC’s first ever third party equity fund. The EUR 500 million fund will principally target mid-sized European infrastructure projects.
- Commercial Real Estate: NIBC strengthened its position in the commercial real estate market with two Commercial Mortgage Backed Securities (CMBS) transactions in 2007. This brings the total of CMBS transactions arranged by NIBC to six, four of them under the MESDAG programme.
- Financial Institutions Franchise: Our Financial Institutions Group (FIG) continued to develop its business and the relationships between NIBC and institutional clients. It mainly concentrated on mid-cap financial institutions in the Benelux and in Germany. In 2007, FIG did deals with parties including AFAB and Welke Beheer, two mid-cap Dutch financial intermediaries.
Operational highlights
- In preparation for the anticipated initial public offering in 2007, NIBC implemented important organisational changes aimed at further enhancing the operational efficiency of our strategic business units. As a result, reporting lines were significantly shortened and internal processes were streamlined.
- NIBC received authorisation from the Dutch central bank in November 2007 to adopt the Advanced Measurement Approach in the implementation of the Basel II framework for capital requirements.
