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Initiatives for a More Sustainable Society; Profit and Dividend UpTHE HAGUE, Netherlands, March 12, 2018 /PRNewswire/ -- BNG Bank can look back on a good year, reports Gita Salden, the new Chair of the Executive Board. In line with government policy, new products in the areas of sustainability and export financing were developed for clients. In addition, the bank's key financial targets were achieved. Profit and solvency ratios both increased. A proposal is made to the shareholders so as to raise the dividend pay-out percentage from 25% to 37.5%. In order to further strengthen its role as a committed partner for a more sustainable society, BNG Bank financed more than 150,000 solar panels in the year under review through Rooftop Energy and the 'Boer Kiest Zon' solar farming project as well as through directly financing municipalities and housing associations, among others. Wind energy, biomass, bioenergy, geothermal and district heating network projects were also financed. In autumn, a public real estate scan was introduced. Municipalities used this online tool to identify - within just a few months - 1 million m2 of public real estate to be made more sustainable through investments. The bank established a Sustainability Fund in December. Associations, enterprises and other business initiators can raise a loan from EUR 100,000 with this Fund for projects which contribute to the sustainability goals of municipalities or provinces. BNG Bank will initially provide EUR 10 million to the Fund and intends to increase this amount to EUR 25 million in the coming three years. The interest and repayments received will in turn be made available for new investments. To finance its sustainable activities, BNG Bank issued two new sustainable bonds in the year under review. Since 2014, the bank has issued a total of six sustainability bonds and social housing bonds valued at EUR 4.1 billion, making it one of the leaders in this field within the Dutch banking landscape. BNG Bank also began providing refinancing under the export credit guarantee scheme operated by the central government in 2017. By now, three transactions totalling over USD 300 million were concluded. They are a tangible indication of BNG Bank's response to the government's wish of promoting Dutch exports and supporting Dutch businesses that export their goods and services to other countries. The total amount of long-term lending in 2017 was EUR 9.5 billion, most of which was provided to municipalities, housing associations, and healthcare and educational institutions. The total amount decreased by EUR 0.7 billion compared to 2016 due to the relatively low market demand. At the end of 2017, the total long-term loan portfolio amounted to EUR 80.1 billion (end of 2016: EUR 81.0 billion). Net profit up Increased solvency ratios Higher dividend pay-out percentage Outlook for 2018 BNG Bank will publish its Annual Report on Thursday 29 March 2018 via http://www.bngbank.com . BNG Bank is a committed partner for a more sustainable society. The bank supports government policies by providing affordable financing to municipalities, housing associations, healthcare and educational institutions, project financing and other public sector institutions based on its excellent credit rating. With a balance sheet of EUR 140 billion, BNG Bank is the fourth-largest bank in the Netherlands. This is an unofficial translation of the Dutch press release. This translation is provided for convenience only. In the event of any ambiguity, the Dutch text will prevail. Amounts in millions of euros 31-12-2017 31-12-2016 ASSETS Cash and balances with central banks 2,996 6,417 Amounts due from banks 13,997 11,795 Financial assets at fair value through the income statement 2,006 2,350 Derivatives 8,982 15,412 Financial assets available-for-sale 14,110 15,437 Loans and advances 86,008 87,576 Value adjustments on loans in portfolio hedge accounting 11,813 14,894 Investments in associates and joint ventures 47 46 Property & equipment 17 17 Other assets 19 56 Assets held-for-sale 30 - TOTAL ASSETS 140,025 154,000 LIABILITIES Amounts due to banks 2,393 3,530 Financial liabilities at fair value through the income statement 944 1,190 Derivatives 21,870 24,780 Debt securities 104,127 112,180 Funds entrusted 5,472 7,556 Subordinated debt 31 31 Other liabilities 235 247 Total liabilities 135,072 149,514 EQUITY Capital and realised reserves 3,366 3,106 Hybrid capital 733 733 Revaluation reserve 268 275 Cash flow hedge reserve 193 3 Net profit 393 369 Total equity 4,953 4,486 TOTAL LIABILITIES AND EQUITY 140,025 154,000
Amounts in millions of euros 2017 2016 - Interest income 5,905 6,126 - Interest expenses -5,470 -5,721 Interest result 435 405 - Commission income 26 28 - Commission expenses -3 -3 Commission result 23 24 - Result from sales of AFS portfolio 47 34 - Other realised results 6 28 - Market value adjustments of financial instruments 128 55 Result on financial transactions 181 118 Results from participating interests 2 4 Other results 2 2 Result from sales of assets held-for-sale - 34 TOTAL INCOME 643 588 Staff costs -44 -38 Other administrative expenses -26 -26 Depreciations -2 -2 TOTAL OPERATING EXPENSES -72 -66 Impairments 6 29 Change in incurred loss provision 4 4 Resolution Fund contribution -9 -16 Bank levy -36 -35 TOTAL OTHER EXPENSES -35 -19 PROFIT BEFORE TAX 536 502 Taxes -143 -134 NET PROFIT 393 369 BNG Bank is a trade name of N.V. Bank Nederlandse Gemeenten, with its registered office in The Hague, Trade Register number 27008387 PRN NLD 
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