2016 annual figures: Successful year for NWB Bank

• NWB Bank finances €7.1 billion in public investments in the Netherlands
• Net profit rises by 13% to €107.4 million and total assets to €94.4 billion
• Successful year for public-private partnership (PPP) projects
• NWB Bank strengthens its leading position as issuer of green bonds with a USD 1.25 billion Water Bond issue
• At 50.5%, CET1 capital ratio amply exceeds ECB 7% minimum requirement

NWB Bank finances €7.1 billion in public investments in the Netherlands
NWB Bank's aim is to keep the financing charges for the public sector as low as possible. New long-term lending to the Dutch public sector in 2016 again exceeded €7 billion (€7.1 billion in 2016 compared to the 2015 record level of €7.4 million). 'This high lending volume highlights our important role as a public sector bank in financing the Dutch public sector. In addition to providing financing to our regular clients, such as the water authorities and housing associations, in 2016 we achieved a substantial market share in financing transactions in the PPP market', says Menno Snel, Chairman of the Managing Board.

Net profit rises by 13% to €107.4 million
NWB Bank's net profit rose by 13% to €107.4 million in 2016 (2015: €94.7 million). This was mainly due to an improvement in interest income by €38.5 million to €218.3 million. The improvement in interest income is partly attributable to the favourable funding rates for the bank. In 2016, operating costs rose by €1.1 million to €18.8 million. Supervision costs in particular rose sharply. This cost item has increased fivefold in the last three years from €0.45 million to €2.2 million in 2016. NWB Bank's total assets increased to €94.4 billion (up €3.1 billion relative to the end of 2015).

Successful year for PPP projects
NWB Bank was able to successfully expand its PPP portfolio in 2016 by financing six PPP projects. Three of these projects were new, two projects comprised the refinancing of existing PPP projects and one project comprised an operational PPP project in which NWB Bank took over the position in the banking group. As co-financier, NWB Bank has consequently gained a market share of over 25% of all accommodation and infrastructure projects put out to public tender by the Dutch central government in the last 15 years.

NWB Bank strengthens its leading position as issuer of green bonds
In 2016, the bank raised over €12 billion in long-term funding through the international capital market. This included a bond issue with a maturity of 25 years, the longest maturity period ever for a public issue by the bank. Furthermore, the bank again issued a successful Green Bond, the first US dollar Water Bond totalling USD 1.25 billion. At the end of 2016, NWB Bank and the European Investment Bank (EIB) concluded a global loan for €250 billion. The EIB will make this amount available to NWB Bank, which in turn will then invest €500 million in enhancing the sustainability of social housing and in achieving objectives of the water authorities concerning the circular economy. The loan represents a continuation of the collaboration entered into at the end of 2015, through which €800 million in social housing, environmental, knowledge economy and water sector projects have meanwhile been financed.

At 50.5%, CET1 capital ratio amply exceeds 7% ECB minimum requirement
At the end of 2016, equity totalled €1,507 million (including 2016 profit), compared to €1,399 million at the end of 2015 (including 2015 profit). At 50.5% (including 2016 profit), the Common Equity Tier 1 ratio (CET1) amply exceeded the 7% minimum requirement laid down by the ECB for the bank at the end of 2016, which serves to underline NWB Bank's high creditworthiness and low risk profile. The 7% minimum capital requirement comprises the 4.5% statutory minimum, a 1.25% general capital conservation buffer and a 1.25% bank-specific pillar 2 requirement. The CET1 ratio of 69.8% at the end of 2015 declined to 50.5% at the end of 2016 (both including profit for the financial year) mainly due to a different method of calculating the capital requirement for the Credit Valuation Adjustment.

Despite the increase in total assets, the leverage ratio rose by 0.2 percentage points in the past year to 2.3% (including 2016 profit). This is mainly as a result of attracting Additional Tier 1 (AT1) capital, in addition to the maximum reservation of the annual profit, in order to comply with the expected 3.0% minimum leverage ratio requirement.

Reserves and dividend
The total net profit of €107.4 million recorded for 2016 will be added to the general reserves in its entirety. The bank has been reserving the full amount of its annual profits since 2011 with a view to meeting the expected leverage ratio requirement. It should be noted that the European Commission submitted proposals at the end of November, including a different calculation method to be used in due course to calculate the leverage ratio for promotional banks, such as NWB Bank. As soon as greater clarity has been obtained on the implementation of these proposals concerning the leverage ratio calculation, the bank will reconsider its dividend policy.

Outlook for 2017
The outlook for the Dutch economy is favourable for 2017. This may offer more scope for investments by the public sector. At the same time, however, the bank sees fewer opportunities for the further maturity extensions of loan portfolios by clients. According to the current forecast, in 2017 the bank's net profit will be slightly below the 2016 level.

NWB Bank will publish its 2016 Annual Report on 20 April 2017.







Long-term loans and advances (nominal value)



Equity [1]



Tier 1 capital [1]



Total assets



Risk-weighted assets







Net interest income



Results from financial transactions



Operating income



Operating expenses



Income tax expense



Bank tax and resolution levy



Net profit







Tier 1 ratio [1]



CET 1 ratio [1]



Operating expenses/interest ratio



Leverage ratio [1]



Liquidity Coverage Ratio (LCR)



Net Stable Funding Ratio (NSFR)




Corporate Social Responsibility



Volume of Green and Social Bond financing



CO2 emissions from operating activities p.p. (in tonnes)



[1] including profit for the financial year