H1 2009 net profit to €28 million, improving significantly after difficult H2 2008

08.09.2009

“Reduced cost base and limited impairments support profit in first half 2009”

• Total assets €10.7 billion, up 11.8% compared to end 2008
• Net profit to €28 million following a €9 million net profit in H2 2008
• Impairments to €84 million, from €115 million in H2 2008.
• The bank continues its long term focus on balancing emerging markets risk more with risk in more developed countries: credit exposure in G10 countries increases from 32% to 39%, while exposure in emerging markets went down from 63% to 54%.

TC Beriker, CEO of Credit Europe Bank: “Despite the still uncertain financial markets in the first half of 2009, Credit Europe Bank strengthened its position and increased its profit compared to the previous reporting period. Even in the recent difficult period, Credit Europe Bank has proven to be a solid financial services group. It has reported positive results since its foundation in 1994, while constantly growing the balance sheet. This has brought our bank in the top 10 of Dutch banks as measured by total balance size. Based on the contribution in the past months, we expect that we will again increase our full year net profit after having reported a record net profit of €74.5 million in the year 2008“.

 
Operational highlights:

Trade and Commodity Finance:

• Credit Europe Bank has actively pushed to attract new customers, in order to offset the decline and volatility in commodity prices as well as the decline in tonnages due to the slump in demand.
• Fees and commissions in H1 2009 still below 2008 level, but business activity is picking up in the last months, supported by new clients searching for solid banks with expertise on this field.

Direct Retail Banking in Belgium, Germany, Malta and the Netherlands:

• Loyal clients aiming for long term stability are increasingly shifting from daily withdrawals to time deposits, that now account for 59% of total savings and deposits (end 2007: 40%)
• Consumer credits are picking up. Next to organic growth, the bank may consider acquiring attractive retail loan portfolios. 

Banking outside the euro-zone:

• Substantial cost reduction and reduction of headcount in Romania, Russia and Ukraine due to economic circumstances.
• Anticipating on long term growth prospects, Credit Europe Bank strengthens its major commercial position in Romania and Russia. Over 1,000 new points of sale were added in Romania and Russia, bringing the total number of commercial contact points to more than 10,000.
• The bank has maintained its #1 position in Romanian credit cards.
• In Russia, it has started offering the exclusive Ikea card to its existing franchise of Metro and Auchan card programs.
• Credit Europe Bank Switzerland operates satisfactory; Assets under Management to $ 2.1 billion. 

Background on Credit Europe Bank
Founded in 1994 in Amsterdam, Credit Europe Bank N.V. has grown towards a solid, international financial services group, ranked in the top 10 of Dutch banks with a total balance of around €10 billion. Serving around three million customers worldwide, the Bank’s mission is to offer tailor-made corporate banking services and easy-to-use and efficiently delivered retail products.

Further information:
Robert Bakker       
T: + 31 20 357 8069 / + 31 6 5152 7441   
Robert.bakker@crediteurope.nl     

Appendix: Balance sheet and Profit & Loss Accounts

Top   Print Version