THE HAGUE, The Netherlands, March 4, 2013 /PRNewswire/ --

Net profit EUR 332 million

BNG realized a net profit of EUR 332 million for 2012, which is an increase of EUR 76 million compared with 2011. With this figure, the bank has well exceeded its profitability objective. Despite challenging market conditions, the bank's market position remained strong. Moody's, Fitch and Standard & Poor's have reconfirmed the bank's triple-A ratings. Investors regard BNG as one of the safest banks in the world. Like last year, it is proposed to the shareholders that 25% of the net profit be distributed as dividend.

The bank's high market shares confirm the importance of the bank's role. BNG met more than 70% of the long-term credit demand from its main client sectors. Total new long-term lending in 2012 fell by EUR 1.2 billion to EUR 11.1 billion. The difficult economic conditions have a knock-on effect on the willingness to invest among the bank's clients.

In 2012, EUR 15.2 billion (2011: EUR 16.4 billion) was attracted in long-term funding. The uncertainties about the European debt crisis continued. The bank had to pay relatively high credit and liquidity risk spreads, particularly in the first half of 2012. However, BNG was able at all times to attract funding on favourable terms and thus keep its liquidity profile at an adequate level.

The interest result rose slightly to EUR 473 million, which was in accordance with expectations. The result financial transactions turned from EUR 87 million negative in 2011 to EUR 88 million positive. This accounts almost entirely for the change in total income and is the result of decreasing concerns about the European debt crisis in the second half of the year. The 2012 result was negatively affected by the introduction of the bank levy and by impairments.

The financial sector is characterized by major developments in laws and regulations. Nearly all legislative proposals will directly or indirectly result in additional burdens. Apart from the implementation costs, this involves amongst others the costs associated with the central clearing of swap transactions and the significant increase in disclosure requirements pursuant to the new regulations.

The outlook for 2013 is once again clouded by more than usual uncertainties. The bank expects the volume of new long-term lending to be comparable with that of 2012. Clients are expected to be reluctant to make new investments. The bank foresees a small increase in the interest result. The result financial transactions remains highly sensitive to the development of the European debt crisis. In addition, an adjustment of the valuation of derivatives is expected to result in increasing unrealized result volatility.

In view of the continuing uncertainties, the bank does not consider it wise to make a statement regarding the 2013 net profit.

On 24 April 2013, BNG will publish its 2012 Annual Report on bng.com.

This is an unofficial translation of the Dutch press release 'BNG Jaarcijfers 2012' which is provided for convenience only. In the event of any ambiguity, the Dutch text will prevail.

Consolidated balance sheet as at 31 December 2012

In millions of euros

                                                                    31-12-2012  31-12-2011
    Assets
    Cash and balances with the central bank                              2,834       5,149
    Amounts due from banks                                              10,171       8,448
    Financial assets at fair value through the income statement          3,476       3,322
    Other financial assets                                              25,824      21,519
    Financial assets available-for-sale                                  9,018       6,919
    Loans and advances                                                  90,725      90,775
    Investments in associates and joint ventures                            89         108
    Property and equipment                                                  18          19
    Other assets                                                            73         201

    Total assets                                                       142,228     136,460

    Liabilities
    Amounts due to banks                                                 6,223       7,469
    Financial liabilities at fair value through the income statement     2,730         628
    Other financial liabilities                                         18,692      14,367
    Debt securities                                                     99,424     100,907
    Funds entrusted                                                     12,139      10,944
    Subordinated debts                                                      33          93
    Other liabilities                                                      235         155
    Total liabilities                                                  139,476     134,563

    Equity                                                               2,752       1,897

    Total liabilities and equity                                       142,228     136,460

Consolidated income statement for 2012

In millions of euros

                                                       2012          2011

    - Interest income                               2,115         2,327
    - Interest expenses                             1,642         1,865
    Interest result                                         473          462

    Results from associates and joint ventures               (2)           0

    - Commission income                                31            33
    - Commission expenses                               6             6
    Commission result                                        25           27

    Result financial transactions                            88          (87)

    Other results                                             4            4
    Total operating income                                  588          406

    - Staff costs                                      38            35
    - Other administrative expenses                    25            23
    Staff costs and other administrative expenses            63           58

    Depreciation                                              1            2
    Total operating expenses                                 64           60

    Impairments                                              32            7
    Bank levy                                                32            -
    Profit before taxes                                     460          339

    Taxes                                                  (128)         (83)

    Net profit                                              332          256

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