Continued delivery on transformation and remediation milestones 

• Merger of all four retail brands successfully completed on 1 March 2026 with the transition of BLG Wonen, finalising the single brand strategy
• FTE reduction following organisational simplification on track: approximately 60% of the total reduction target of 1,600 structural FTEs achieved; realised staff cost savings of € 41 million in the first half of 2026
• Remediation efforts in anti-financial crime and risk management progressing well 

Commercial growth accelerating: rising growth in mortgages and deposits 

• Growth in residential mortgage portfolio of € 2.9 billion to € 59.3 billion
• Increase in market share of new mortgage production to 8.1% (1H25: 6.7%)
• Household deposits increased by € 1.9 billion to € 49.2 billion 

Net profit of € 174 million; Return on Equity of 8.1% 

• Net profit increased by 26% and was positively impacted by € 11 million in incidental items, mainly consisting of a partial release from the provision for our anti-financial crime remediation programme. Adjusted net profit increased to € 163 million (+9%); adjusted Return on Equity of 7.5%
• Net interest income improved by 5%, reflecting growth in our residential mortgages and household savings portfolios
• Total operating expenses, adjusted for incidental items, 6% lower due to a decrease in staff costs resulting from the transformation
• Capital position remained solid: CET1 capital ratio slightly lower at 19.7% as a result of growth in our loan portfolio; leverage ratio stable at 5.1% 
   

Roland Boekhout, CEO ASN Bank 

''In November last year we launched our new strategy, ‘Simplify and Grow’. It builds on the transformation initiated at the end of 2024, and will make us a more streamlined, cost-efficient bank while improving our commercial proposition and brand, thus boosting growth in mortgages, savings and payments. The strategy will guide us through a changing economic environment marked by geopolitical tensions, lower GDP growth, persistent inflation and higher interest rates. 

We are pleased to see our new strategy is already bearing fruit. Our market share in new mortgages improved from 6.7% to 8.1% and supported by campaigns to attract savings customers, our household savings portfolio also further increased. 

The benefits of the transformation are starting to materialise in our operating expenses which adjusted for incidental items decreased by 6%, reflecting 15% lower staff costs. Commercial growth and organisational streamlining helped lift net profit in the first half of 2026, by 26% to € 174 million. The next phase, now in full swing, involves further simplifying our operations ‘under the hood’ by aligning our product portfolio, internal processes and improving data management, while overhauling our IT infrastructure to fit with our one brand approach. Progress made here includes decommissioning old IT systems, rationalising our product offerings and forging key strategic partnerships, including for the development of a cutting-edge, future-proof platform for our core mortgage business. 

A simpler, faster and smarter organisation enables us to offer an even better customer experience. A simplified organisation is also a prerequisite for being able to meet supervisory requirements and remediation deadlines. This area remains a top priority, and we are making timely progress in meeting interim requirements as agreed upon with the supervisory authorities. 

After opening our first flagship store in Utrecht at the end of last year, we further strengthened our physical presence in the Randstad with the opening of our second flagship store in Amsterdam in May, with a third due to open in Rotterdam this autumn. Together with our nationwide network of 325 branches, this reflects our commitment to remaining accessible and close to our customers. In addition, we continue to stand out by offering our customers advice and more favourable financing conditions on sustainable homes. 

We can be proud of the progress made so far. Nonetheless, 2026 remains a pivotal year for the new ASN Bank, as it is now time to show we can continue to deliver on our strategy as an accessible bank that remains committed to providing solutions for challenges in Dutch society such as sustainability, housing accessibility and financial wellbeing. 

I would like to thank our customers, franchise partners, intermediaries, shareholder and other stakeholders for their continued support and trust in ASN Bank. My thanks in particular to all my colleagues for their hard work and contribution to our progress. This includes colleagues leaving us this year, whom we will support carefully through this transition. By continuing to work together in this way, I am confident we can keep building the best possible future for ASN Bank and all our customers. Our ongoing transformation is necessary regardless of ultimate ownership, but in any case, every step we take towards becoming a more cost-efficient bank with a distinctive social profile further enhances our prospects for privatisation.'' 

Read more at Results & presentations.
 

ASN Bank acknowledges the observations and views set out in the progress report. These provide a clear picture of our progress and of the challenges and objectives for the coming period. In terms of implementing the transformation, the formal launch of ASN Bank and the new organisation on 1 July 2025 was a significant milestone, followed by the presentation of the new ‘Simplify and Grow’ strategy in November . 

This also marked the start of the next phase of the transformation, which is taking place mainly ‘under the hood’ primarily in the areas of IT organisation and data management. At the same time, ASN Bank is still working hard to remedy the identified shortcomings in anti-money laundering and risk management. 

Our focus remains on the rapid implementation of the transformation and the priorities of AFC remediation and risk management, with the most significant steps to be taken by the end of 2026. 

Finally, NLFI notes that ASN Bank is not yet ready for a decision on privatisation. ‘Although ASN Bank has made progress over the past year, NLFI does not expect to reach a different conclusion in 2026,’ the shareholder concludes in its report. 

ASN Bank is keen to continue the dialogue with NLFI regarding its future. This will ensure that, as a systematically important bank that is socially engaged, we can continue to contribute to the diversity of the Dutch banking landscape in the future. 

On 7 August, when we present our interim results for 2026, we will provide an update on our financial progress and the achievement of our strategic objectives. 

Both the letter from the Minister of Finance and the NLFI report can be found on the Government of the Netherlands' website. 

• Successfully launched the new ASN Bank by merging our four retail brands and changing the entity name from ‘de Volksbank N.V.’ to ‘ASN Bank N.V.’
• Optimised our distribution network to a nationwide network of 325 bank branches, and applied a full rebranding
• Implemented a new organisational structure, leading to staff reduction of over 700 FTEs and first structural cost savings of € 35 million in 2025 (annualised € 70 million); additional structural reduction of 850 – 950 FTEs throughout 2026, provisioned for in 2025
• Remediation efforts in anti-financial crime and risk management progressing according to schedule

Strong commercial performance supported by the transformation

• Growth in residential mortgage portfolio of € 4.5 billion to € 56.5 billion
• Increase in market share of new mortgage production to 6.9% (2024: 6.3%)
• Household deposits increased by € 1.7 billion to € 47.3 billion

Net profit of € 268 million; Return on Equity of 6.3%

• Net profit negatively impacted by € 51 million in incidental items, consisting of an addition to the restructuring provision for our transformation programme. Adjusted for incidental items, net profit amounted to € 319 million; Return on Equity of 7.6%
• Total income down by 7% to € 1,219 million, reflecting the changed interest rate environment
• Total operating expenses, adjusted for incidental items, 5% higher at € 805 million, mainly driven by higher temporary costs related to the transformation and wage inflation
• Capital position remained solid: CET1 capital ratio slightly lower at 19.8%, as higher CET1 capital was offset by an increase in risk-weighted assets; leverage ratio stable at 5.1%
• Proposed dividend for 2025: € 124 million, corresponding to a 50% pay-out ratio

Roland Boekhout, CEO ASN Bank
“In 2025 we successfully focussed on delivering our transformation targets while navigating through economic uncertainty, geopolitical turbulence and a changing interest rate environment. Given these challenging circumstances we are pleased with our financial and commercial results. We achieved steady growth in mortgages with healthy margins which we intend to maintain in the coming years.

In July we launched our new organisation and completed the rebranding of SNS branches. With the rebranding of RegioBank in December, ASN Bank now offers customers face-to-face service through our unique franchise model with a nationwide network of 325 branches – which is what continues to set us apart from other banks. 

Building on the progress of our transformation, in November we announced our new strategy aimed at achieving growth in mortgages, savings and payments. This calls for further simplifying our operations by aligning our product portfolio, IT infrastructure and support services under an integrated distribution channel and our one strong brand.

Another priority is increasing our impact on society. As an accessible bank we remain committed to provide solutions for challenges in the Dutch society such as sustainability, housing accessibility and financial wellbeing.

In parallel to these developments, we have made good progress in strengthening our remediation efforts in anti-money laundering and risk management, meeting all interim requirements agreed upon with the supervisory authorities after we were fined in January 2025 for shortcomings in previous years. Our new streamlined organisational structure with clear mandates and responsibilities allows us to better address these deficiencies and gives us agility in a changing regulatory environment.

However, all these changes meant we had to say goodbye to many of our colleagues. A first round of job cuts, affecting over 700 FTEs, was completed this year. An additional ambition with a second round of job cuts, affecting 850-950 FTEs in 2026, was announced in November. These are painful but necessary decisions in building ASN Bank as a future-oriented and financially solid bank for our customers.

I am grateful to our customers, franchise partners, intermediaries, shareholder and other stakeholders for their continued trust and support in ASN Bank. My thanks in particular to all my colleagues for their hard work and sacrifice during this transformational and challenging journey. Based on what we have achieved this year, I have every confidence we will succeed in building an operationally, commercially and financially strong bank where customer relations come first.”

Read more at Results & presentations. 

Angela Eijlander, ASN Bank Chief Sales & Marketing Officer: “This operation marks the completion of a key phase in the transformation of ASN Bank. Thanks to the tireless efforts of all our entrepreneurs up and down the country and our many dedicated ASN Bank employees, we now have a strong network of branches throughout the Netherlands, which puts us in a unique position. In addition to further improving our online services, such as the mobile app, we remain in close physical proximity to our customers, which means we can help them even better with their financial questions and goals. The RegioBank name will now disappear from our highstreets, but ASN Bank is ramping up its presence locally.” 

ASN Bank’s new strategy 

A nationwide network of branches provides a cornerstone of ASN Bank’s new strategy. The proximity of a local branch is an important reason why many customers choose a bank, which is why ASN Bank is the only major bank in the Netherlands with a nationwide network of branches. 

Due to the rise of online banking, the number of bank branches in the Netherlands has decreased sharply in recent years. About half of the Dutch population currently reports not having a bank branch nearby, according to ASN Bank research. 

At the same time, three-quarters of people feel the need for a local branch. ASN Bank meets this need with its renewed national network of branches. The bank works closely with franchise partners who manage and staff these branches, often in combination with an insurance agency. These are regional entrepreneurs who know their customers better than anyone else and can therefore respond excellently to their needs. They also have years of experience in banking. 

The converted branches are former RegioBank locations which now operate under the new name but with the same mortgage, savings and payments products as all other ASN Bank branches. In this way, ASN Bank continues to offer reliable services, but in a fresh new format, not only to former RegioBank and SNS Bank customers, but also to all existing customers of ASN Bank. 

The change of name is currently only visible on the exterior of the buildings; an interior refit will follow early next year. At the same time, ASN Bank is opening three ASN flagship stores at premium locations in the centre of Utrecht, Rotterdam and Amsterdam. This is part of the bank’s strategy to further increase its presence in the Randstad. The first flagship store will officially open its doors in Utrecht on 8 December. 

ASN Bank chose a new strategy in mid-November and will focus in the coming years on growth in mortgages, savings, and payments. Since 1 July, the bank has operated under one brand name, ASN Bank, with the former brands of SNS, RegioBank, and BLG Wonen gradually being integrated. In addition to the website, mobile app, and branches, ASN Bank also offers mortgages through intermediaries. 

ASN Bank is taking the next step towards a financially strong and sustainable future by adopting a new strategy focussed on simplification and growth. The bank is thus building on the foundation laid by the transformation that began at the end of last year. The aim of the new strategy is to achieve growth through the core activities of mortgages, savings and payments. Business operations, internal processes and systems must be made more effective and efficient. 

This step logically follows on from the earlier decision to operate under the single brand name of ASN Bank from 1 July 2025. For example, only one customer administration system is now required and the current range of over 160 products can be reduced significantly. The further streamlining of the organisation is expected to lead to a reduction of between 850 to 950 FTEs, to occur in phases throughout 2026. The Works Council will respond to the request for advice, which is expected to be submitted in early February 2026. The 2024 social plan applies, whereby the bank helps employees find new work. 

Roland Boekhout, CEO ASN Bank 
’As mentioned in our interim financial report in August, our strategy will continue the transformation we have embarked upon. On 1 July, we formally transitioned to the single strong brand of ASN Bank, under which we will serve all our 3 million customers. In addition to our mobile banking services, customers retain access to our nationwide network of local branches. Now our name change and unique distribution model is almost finalised, we are continuing with the transformation by making essential changes under the hood. To simplify the business further, we are reducing the number of existing products and aligning the underlying processes and systems with the one-brand strategy. 
This means that the number of products will be reduced, processes standardised and systems further automated. This will enable us to organise our business operations more efficiently and effectively. 

Of course, I recognise the impact that the further streamlining of the organisation will have on all colleagues. This is again a far-reaching change. I am impressed how all our staff every day demonstrate their commitment and passion for our customers and the bank. We continue to build a sound bank with a distinctive social profile where customer relationships come first.' 

Strategic priorities 
With its strong ASN Bank brand and distinctive social profile, the bank’s new strategy sets out three priorities: 

1. Growth in mortgages, savings and payments 
As a sympathetic challenger, ASN Bank aims to grow in mortgages, savings and payments with simple products that meet its customers’ needs. For the distribution of mortgages our franchise partners and the intermediary channel remain crucial. ASN Bank also wants to make savings more attractive. 

Improving the customer experience is central to achieving this growth. Customers want fast, accurate service: digital where possible, personal where it matters. ASN Bank aims to broaden its customer base also in the Randstad, where it is opening flagship stores in Utrecht, Rotterdam and Amsterdam. 

2. Increasing social impact 
ASN Bank continues to be committed to a sustainable and fair future for everyone. For example, the bank helps customers make their homes more energy efficient. ASN Bank is also looking into whether, in addition to existing impact funds, it can offer space to funds that stimulate the energy transition. Or invest in the transition to a more sustainable economy and society through financing. 

3. Simpler and faster 
Simpler, faster, smarter remains ASN Bank's motto. Simplification is essential for becoming a healthy, cost-efficient bank with an eye for people and society. Now is the time to deliver on that promise. In the first phase of the transformation, the focus was on the 'front end' of the bank. Now it is time to focus more on the 'back end'. 

ASN Bank is moving from more than 160 different products to a clear, improved and appropriate range of products. Less customisation means less complexity and therefore lower costs. The bank's technology needs to be modernised, which is why it is replacing outdated systems and standardising them where possible. ASN Bank is also investing in reliable data, future-proof IT platforms and the pragmatic application of AI. 

Customers will notice these changes because they will experience improved and faster services. For example, through a single app, simpler processes and shorter turnaround times. 

Remediation 
At the same time, ASN Bank is still working hard to improve anti-financial crime processes and risk management. As stated in the 2025 interim financial report, the bank is making good progress in this regard. However, the costs of compliance with legislation and regulations remain high for the time being and also include the temporary hiring of external staff. 

Financial ambitions for 2030 
The strategy is primarily focused on simplification and growth, with improved financial ambitions and results. The proposed streamlining is expected to result in total annual structural cost savings from 2027 of approximately € 150 million, of which € 70 million are to be realised as of 2026, as announced on 19 November 2024, and an additional € 80 million as of 2027. These savings are expected to be partly offset by higher temporary costs related to the implementation of the transformation programme, wage inflation and additional remediation costs to combat financial crime and in risk management. 

Under the new strategy, the ambition is to improve the cost-income ratio to 50%-55%. 
Other financial ambitions are: 

• Return on equity of 8%-10%
• Common Equity Tier 1 capital ratio of at least 17%
• Leverage ratio of at least 4.5% 

ASN Bank intends to make a reorganisation provision for the 2025 financial year. In the earlier phase of the transformation, almost 750 FTEs were already cut, resulting in annual cost savings of € 70 million. 

Previous announcements regarding the transformation: 

• Press release 1 July 2025
• Press release 19 November 2024 

• Successful rebranding to ASN Bank marks key milestone for simplification of organisational structure
• Announced staff reduction of over 700 FTEs effective as of 1 July 2025; financial effects will materialise in the second half of 2025
• Remediation efforts in anti-financial crime and risk management are progressing according to schedule

Strong commercial performance

• Growth in residential mortgage portfolio of € 1.9 billion to € 53.9 billion
• Increase in market share of new mortgage production to 6.7% (1H24: 6.2%)
• Retail savings increased by € 1.3 billion to € 47.0 billion

Net profit of € 138 million; Return on Equity of 6.6%

• Net profit included € 11 million incidental items, consisting of a net addition to the restructuring provision for our transformation programme. Adjusted for this, net profit amounted to € 149 million; Return on Equity of 7.2%
• Total income down 7% to € 612 million, reflecting the changed interest rate environment; net fee and commission income up 19%
• Total operating expenses, adjusted for incidental items, 11% higher at € 410 million, mainly driven by wage inflation and higher temporary costs incurred on implementing the transformation
• Capital position remained solid: CET1 capital ratio slightly lower at 20.0%, as higher CET1 capital was offset by an increase in risk-weighted assets; leverage ratio improved to 5.2%

Roland Boekhout, CEO ASN Bank

“In the first half of 2025, we focused on delivering our transformation targets, while facing global turbulence due to economic uncertainty, geopolitical upheaval and a changing interest rate environment. In these volatile markets we are pleased to report a net profit of € 138 million in the first half of 2025, although this is lower than in the same period last year. The year-over-year decline of € 93 million was predominantly driven by the changing interest rate environment while we’ve seen an increase in operational expenses due to wage inflation and higher temporary costs for implementation of our transformation programme and remediation of risk management-related deficiencies.

Persistently high costs and pressure on revenues underscore the need of our transformation to strengthen the bank commercially and operationally. With the roll-out of the transformation we aim for healthy long-term growth with higher profitability. We are therefore pleased to have delivered on all planned transformation milestones.

A fundamental step in the simplification of our organisational structure was our successful launch of the new ASN Bank on 1 July 2025, which involved the rebranding of SNS and de Volksbank. With this rebranding to one strong retail brand we have also started harmonising our banking services and fees. This standardisation gives ASN Bank greater commercial agility to respond to customer needs even more quickly and effectively. Next to our digital offering, our existing ASN Bank customers now have access to local branches. The optimisation of the distribution network is well on track, which includes rebranding of RegioBank and BLG Wonen in 2026.

Parallel to the transformation, we have substantially stepped up remediation efforts to address the shortcomings in anti-money laundering and risk management that resulted in two fines imposed by De Nederlandsche Bank in January 2025. We are making progress in both areas and are in continuous dialogue with the supervisory authorities.

For the second half of 2025, we will continue focusing on our transformation milestones and targets. Our simplified organisational structure under one strong retail brand will allow us to become a more resilient bank that effectively serves the needs of our three million retail customers, while ensuring compliance with increasing laws and regulations.

The execution of the transformation programme over the first half of 2025 has laid the foundation for the further development and optimisation of our new strategy, which we will present in the fourth quarter. We remain committed to provide solutions for challenges in Dutch society such as sustainability, housing accessibility and financial wellbeing. And through our nationwide network of branches, we will continue to maintain a local presence and offer face-to-face customer service.

I would like to thank all our colleagues, franchisees as well as our intermediary partners for their efforts. And we cannot forget the contributions of over 700 colleagues leaving our bank as of 1 July. Since our announcements in the fourth quarter last year, we have managed to move mountains together. And we did this while keeping our doors open so our customers could continue to rely on the service that they have come to expect from us. I am very pleased with what we have achieved so far. But we are not there yet. We will continue to push for fundamental changes. This should lead to an effective, cost-efficient bank with an eye for people and society, where the relationship with the customer is paramount.”

Read more at Results & presentations.

On 5 August 2025, the notes will be redeemed at par value, plus any accrued and unpaid interest.

Our focus is on actively implementing the transformation and priorities of the AFC and risk management remediation programme. Against this backdrop, we are also working on our strategy for the period after 2025, which is also described in the NLFI progress report. We will gladly continue our dialogue with NLFI on our future so that we may continue to contribute to the diversity of the Dutch banking landscape as a systemic bank with a social profile.

On 8 August, when we present our interim financial results for 2025, we will report on the financial progress and the achievement of our strategic objectives.

Both the letter from the outgoing Minister of Finance and the NLFI report can be found on the website of the House of Representatives (available in Dutch only).

In addition, we also provide the Pillar 3 Report 2024, containing the mandatory reporting on capital requirements and risk management ensuing from the European Capital Requirements Regulation (CRR).

The reports are available here. 

The appointment of Isold as CCO is a first step towards creating the position of COO with effect from 1 July 2025. Upon approval of the supervisory authorities, de Volksbank intends to appoint Isold as the new Chief Operating Officer (COO) within the context of the transformation to a simpler organisational structure. With his extensive experience in managing complex transformations, Isold has the knowledge and experience to implement de Volksbank’s strategic agenda.

In June 2024, de Volksbank announced its intention to change the role of CCO on the Executive Committee. The CCO’s current range of duties includes both a commercial and an operational component. In line with the transformation to a simpler organisation, the new role of COO will focus more on the bank’s operational duties. The COO will be responsible for the mortgage organisation, day-to-day banking operations and customer service, sustainability (ESG), IT, programme and project management.

Isold Heemstra is an executive with extensive experience in the field of banking, insurance, operations and digitalisation. During his career, he managed several complex, digital transformations in the banking and insurance sector, combining a technical background with international management experience. He held the position of CEO of ING in France and CEO of ING in the Czech Republic.

Gerard van Olphen, Chair of the Supervisory Board of de Volksbank: “The Supervisory Board is pleased with the appointment of Isold Heemstra. He has proven strong organisational skills and a good understanding of operational processes in a commercial banking environment. In times of change, Isold has the ability to manage teams in an effective and results-oriented manner. All this makes him the ideal person to hold this position and to put de Volksbank’s transformation on the right track together with his fellow Board members.”

Isold Heemstra: “De Volksbank is facing a big challenge in the coming years. In a relatively short period, the bank is undergoing a major transformation that will have an impact on the organisation and on the IT and data infrastructure. I have been getting my teeth into such change processes my whole working life. Completing complex challenges as a team gives me energy. And, personally, after having worked abroad for 18 years, I am happy to come and live in the Netherlands again with my family.”

CFCO in the Executive Board
In addition to the appointment of Isold, the position of Chief Financial Crime Officer has been added to the Executive Board. Gwendolyn van Tunen had been holding this position on the Executive Committee since June 2024. De Volksbank has made protecting the role of gatekeeper a priority, and adding a CFCO to the Executive Board dovetails neatly with this.

Composition of the Executive Board
With effect from 1 March 2025, the composition of the Executive Board is as follows:

• Roland Boekhout, Chief Executive Officer (CEO)
• André Haag, Chief Financial Officer (CFO)
• Saskia Hoskens, Chief Risk Officer (CRO)
• Isold Heemstra, Chief Customer Officer (CCO)
• Gwendolyn van Tunen, Chief Financial Crime Officer (CFCO)

• Strong customer relationship: increase in number of active multi-customers to 1.233 million (year-end 2023: 1.164 million); improvement in customer-weighted Net Promoter Score to +4 (year-end 2023: -1)
• Positive impact on society: we have reached our KPI climate-neutral balance sheet target of 100% (year-end 2023: 75%). The improvement is largely driven by a reduction in energy consumption of our mortgage customers

Strong commercial performance underpinned by resilient economy despite global geopolitical tensions

• Growth in residential mortgage portfolio to € 52.0 billion (year-end 2023: € 49.2 billion). Increase in new mortgage production to € 7.1 billion (2023: € 5.1 billion); increase in market share of new mortgage production to 6.3% (2023: 5.7%)
• Increase in SME loans of € 158 million (2023: € 150 million) to € 1,393 million
• Retail savings increased to € 45.6 billion (year-end 2023: € 43.6 billion)
• Assets under management (AuM) down to € 4.1 billion (year-end 2023: € 4.2 billion)

Sound net profit excluding major incidental items

• Net profit excluding incidental items of € 427 million (2023: € 431 million); return on equity of 10.5% (2023: 11.4%)
• Incidental items of € 283 million, consisting of charges related to the Transformation programme (€ 96 million), the Anti-financial crime remediation programme (€ 145 million), the settlement of legal proceedings (€ 22 million) and two administrative fines imposed by DNB (€ 20 million)
• Net profit including incidental items of € 144 million; return on equity of 3.2% (2023: 11.4%)
• Total income down 7% to € 1,308 million, driven by a 14% decrease in net interest income, mainly due to lower margins on savings as a result of higher customer rates, partly compensated by higher other income. Net fee and commission income up 20%
• Total operating expenses, adjusted for incidental items, 5% lower at € 765 million, driven by lower regulatory levies, a non-recurring VAT gain and lower marketing costs
• Impairment reversals of € 51 million (2023: a charge of € 15 million), largely as a result of increased residential house prices
• CET1 capital ratio stable at 20.2%, as higher CET1 capital was offset by an increase in risk-weighted assets. Leverage ratio stable at 5.1%

Launch Transformation programme to prepare de Volksbank for the future

• Our current customer brands will combine their strengths and continue to operate under the ASN Bank brand, an essential step in the simplification of our organisation. Over time, the name of the parent company, de Volksbank, will also change to ASN Bank
• Reduction in the number of SNS and RegioBank branches from more than 600 to 320 – 360. To efficiently give substance to this network of branches, we have chosen to use a franchise model
• Rightsizing the organisation to its core business value chain, allowing us to effectively and swiftly react to market and regulatory developments
• The simpler organisational structure is expected to lead to a reduction of 700 – 750 FTEs by 1 July 2025, corresponding to an annual structural cost saving of approximately € 70 million

Roland Boekhout, Chair of the Executive Committee of de Volksbank

“In 2024, against the background of an uncertain and unpredictable geopolitical environment, de Volksbank entered the fourth year of the implementation of its Strategy 2021-2025. Our efforts over the last few years to improve customer relationships and have a positive impact on society are paying off. Furthermore, we achieved a strong commercial result, in particular reflected in the growth of our residential mortgage portfolio. 

The bank reports a net profit of € 427 million for 2024, excluding major incidental charges. This result is approximately the same as in the previous year and marks the bank's second best result since the nationalisation. In addition, in line with earlier communication, we have taken substantial charges, largely related to the implementation of our recently announced Transformation programme and our Anti-financial crime remediation programme. The two administrative fines imposed by DNB in 2025 were also charged to the 2024 result. 

In response to the identified shortcomings related to AFC and risk management operations in previous years, which have led to the above-mentioned administrative fines, we have substantially stepped up remediation efforts. Going forward, the implementation of our Transformation programme and AFC remediation programme should contribute to the remediation of shortcomings in question. 

All in all, de Volksbank can look back on an eventful year. And 2025 too, will see many, sometimes far-reaching, changes. By implementing our Transformation programme, we are combining the strengths of our customer brands into one strong brand: ASN Bank. Tough and, at times, unpleasant decisions are part of this path forward, including a staff reduction of more than 700 FTE, but there is no way around that. Through ASN Bank we will operate under a brand that is distinctive, easily recognisable, ambitious and future oriented; a brand that offers simple product solutions and brings these close to customers. A unique proposition in our market!” 

Read more at Results & presentations 
Watch the analyst webcast (11:00 AM) 

Roland Boekhout, CEO of de Volksbank: “Due to the further digitisation of banking services, the number of bank branches in the Netherlands has declined significantly. Clearly, this development will not pass us by either. Nevertheless, we are convinced of the combination of mobile banking and a nationwide network of local branches. With this optimisation, de Volksbank can continue to be the only Dutch bank to offer a financially sound, nationwide network. The strength of a personal financial consultation at moments that matter to the customer is unparalleled. With our branches, we keep personal financial advice accessible. Together with our local franchise partners, we meet this need for advice of our 3 million customers, soon under the flag of one strong brand.”

De Volksbank opts for franchise model
To efficiently give substance to a nationwide network of branches, de Volksbank has chosen to use a franchise model. By doing so, de Volksbank is opting for the strength and network of franchisees and the entrepreneurial knowledge they have of their own region. The distribution network will be optimised carefully, in phases and in close cooperation with the franchisees. The guiding principle is a healthy and sustainable return for both the franchisee and franchiser. In this context, the bank intends to merge branches currently close to each other and serving the same area where possible. Where this proves impossible, the collaboration will be terminated in mutual consultation with the franchise partner. In addition to our franchise model, the intermediary channel remains crucial for the distribution of mortgages.

SNS
The choice to use a franchise model will impact the 46 SNS shops that are currently still managed by de Volksbank. The aim is to bring these stores into the franchise model wherever possible. Where this proves impossible, our own shops will be closed.  Employees affected by this are part of the total expected 700 – 750 FTE reduction as announced by de Volksbank on 19 November 2024.

The aim is to guide the employees in question from "work to work" as much as possible; where possible with the franchisees in the same region. The bank expects to submit a follow-up request for advice to the Works Council for its own shops in January 2025.

For further optimisation of the other 148 SNS franchise shops, the merger of branches will be explored in consultation with the franchisees. Additionally, a number of branches will be closed, bringing the number of franchise shops to an estimated 110 – 130.

RegioBank
RegioBank works with local independent advisers and currently has 416 branches. In consultation with the franchisees, these branches are merged where possible. Where this proves impossible, the collaboration with the independent adviser will be terminated. Likewise, contracts with independent advisers who intend to close their business will be terminated. De Volksbank expects the number of branches run by independent advisers to total 200 – 230.

Flagship stores
In addition to the unique franchise model with a nationwide network, de Volksbank is introducing three contemporary accessible flagship stores for financial advice for both retail and business customers. Besides getting financial advice, customers and other interested persons may attend seminars or training sessions on interesting topics in these stores. The flagship stores will be managed by the bank itself.

Previous posts on transformation

• 4 October 2024 - De Volksbank launches transformation programme to increase operational strength
• 19 November 2024 - De Volksbank presents framework transformation

The intention is to take these provisions over 2024. We will further specify the provisions with the publication of our 2024 annual results, scheduled for 14 February 2025.

• Strong customer relationship: increase in number of active multi-customers to 1.204 million (year-end 2023: 1.164 million); improvement in customer-weighted Net Promoter Score to +5 (year-end 2023: -1) and Customer Relationship Score to 56 (year-end 2023: 53) 
• Positive impact on society: improvement of climate-neutral balance sheet to 76% (year-end 2023: 75%), due to an increase in purchased green bonds with a strong focus on renewable energy projects

Strong commercial growth due to resilient economy despite global geopolitical tensions

• Growth in residential mortgage portfolio to € 50.5 billion (year-end 2023: € 49.2 billion). Increase in new mortgage production to € 3.1 billion (1H23: € 2.2 billion); increase in market share of new mortgage production to 6.2% (1H23: 5.1%)
• Increase in SME loans of € 83 million (1H23: € 78 million) to € 1,318 million
• Retail savings increased to € 45.1 billion (2023: € 43.6 billion)
• Assets under management (AuM) stable at € 4.2 billion

Sound net profit in a changing interest rate environment

• Net profit 7% lower at € 231 million; return on equity of 11.5% (1H23: 13.6%)
• Total income down 10% to € 661 million, driven by a 15% decrease in net interest income, mainly due to lower margins on savings and lower ALM- and money market-related net interest income, partly compensated by higher other income. Net fee and commission income up 9%
• Total operating expenses 5% lower at € 371 million, driven by lower regulatory levies and a non-recurring VAT gain. These elements more than offset the impact of wage inflation, an increase in staff and higher anti-financial crime costs
• Impairment charges recorded a € 30 million release resulting in € 38 million lower risk costs (1H23: a charge of € 8 million), largely driven by impairment reversals for residential mortgages, due to an improved macroeconomic outlook and higher house prices
• CET1 capital ratio lower at 19.7% (year-end 2023: 20.2%), as a result of higher risk-weighted assets. Liquidity Coverage Ratio lower at 158% (1H23: 262%), mainly due to more efficient use of excess liquidity. Leverage ratio higher at 5.2% (year-end 2023: 5.1%), reflecting an increase in CET1 capital

De Nederlandsche Bank (DNB) started two administrative fine procedures 

• In 2023, we announced that DNB had concluded that de Volksbank does not adequately identify and assess its risks related to money laundering, the financing of terrorism and customer integrity and intended to start an internal procedure to impose an administrative fine. In the meantime, DNB has started the procedure to impose this fine 
• Furthermore, DNB notified us in the first half of 2024 that, following the outcome of a supervisory review conducted at the request of the ECB on sound operational management at de Volksbank, it also intends to impose an administrative fine for alleged risk management-related shortcomings in previous years
• The final outcome of both administrative fines procedures is as yet unclear and the financial impact, which may be significant, cannot be estimated reliably at present

Roland Boekhout, Chair of the Executive Committee of de Volksbank

“In 2024, against the background of an uncertain and unpredictable geopolitical environment, de Volksbank entered the fourth year of implementing its strategic plan for the period 2021-2025. Our efforts over the last few years to improve customer relationships are paying off: the customer-weighted average Net Promoter Score of our brands showed a sound improvement, and we saw a further increase in the number of active multi-customers. Furthermore, de Volksbank has been included in Sustainalytics’ 2024 list of Top Rated ESG Companies on the basis of its 2023 ESG Risk Rating, which underlines that we attach great importance to our role as a social and sustainable bank.

We had a good start to 2024 with strong financial and commercial results, reflected in the growth of our residential mortgage and SME loan portfolios. In a changing interest rate environment, our net profit showed a limited decline compared to the first half of 2023, mainly as a result of lower net interest income. Operating expenses went down, due to a decline in regulatory levies and a non-recurring VAT refund. As a result of an improved macroeconomic outlook and higher house prices, we saw a reversal of loan impairments.

In 2023, we announced that DNB had concluded that de Volksbank does not adequately identify and assess its risks related to money laundering, the financing of terrorism and customer integrity and intended to start an internal procedure to impose an administrative fine. In the meantime, DNB has in fact started this procedure. Furthermore, DNB notified us that, following the outcome of a supervisory review on sound operational management at de Volksbank, they also intend to impose an administrative fine for alleged risk management-related shortcomings in previous years.

Finally, I would like to emphasise that I have been impressed so far by the great commitment and passion of all our colleagues to grow and develop the social identity of the bank, while continuously improving customer relationships. I also recognise that the bank has to go a step further in simplifying and improving its business model and processes, and I will prepare for this together with my fellow board members. But ultimately this commitment is a solid base for the future of de Volksbank.”

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We continue to focus on further strengthening the operational and financial robustness of the bank we keep our focus on the rapid implementation of the strategy and priorities. Against this background, we are also working on the elaboration of our strategy for the post-2025 period. We will gladly continue our dialogue with NLFI on our future, so that we may continue to contribute to the diversity of the Dutch banking landscape as a systemic bank with a social profile.

On 9 August, when we present our interim financial results for 2024, we will report on the financial progress and on the achievement of our strategic objectives.

Both the Minister of Finance’s letter and NLFI’s report can be found on the website of the Dutch House of Representatives (available in Dutch only).

Gwendolyn van Tunen has been active in the financial sector for more than 25 years, the last 20 of which in various national and international management positions in the fields of compliance, corporate governance and operations. In various positions, she gained extensive knowledge and experience in national and international laws and regulations and integrity risks. Gwendolyn has held the position of Compliance Director at de Volksbank since 2021. Prior to that she fulfilled the role of Chief Compliance Officer at ABN AMRO for seven years. She started her career as an auditor.

Gerard van Olphen, Chair of the Supervisory Board of de Volksbank: "The Supervisory Board is pleased with the appointment of Gwendolyn van Tunen as CFCO in the Executive Committee. With this appointment, I am convinced that de Volksbank now has the required decisiveness to gain more speed to fulfil its role of gatekeeper in a structural manner.”

Roland Boekhout, Chair of the Executive Committee of de Volksbank: “On behalf of the Executive Committee, I welcome Gwendolyn as CFCO. It helps us that, with her background as Compliance Director, she is well acquainted with the challenges and our priority to combating financial crime. With her appointment, we strengthen the safeguarding of customer integrity measures to effectively combat money laundering and the financing of terrorism.”

Composition of the Executive Committee
As from 24 June 2024, the Executive Committee of de Volksbank consists of seven members. Roland Boekhout (CEO), André Haag (CFO), Saskia Hoskens (CRO) and Marinka van der Meer (CCO) are the statutory members. In addition, three non-statutory members serve on the Executive Committee: Jacqueline Touw-Conradi (CPOO), Michel Ruijterman (CIO) and Gwendolyn van Tunen (CFCO).

At de Volksbank, we ​​particularly appreciate that we were given the opportunity to share our views with NLFI. De Volksbank concurs with the analysis drawn up by NLFI and the resulting advice as a basis for further political decision-making. In general terms, NLFI assesses two future options as realistic: a private sale or an initial public offering (IPO). This is in line with our own analysis and conclusion, although on closer inspection there are also differences, such as securing our social profile in the governance in advance and the vision of a possible sale in parts, noting that NLFI qualifies the latter option by pointing out that it does not necessarily recommend this, but does not want to rule it out in advance either.

In our response to NLFI, we have drawn attention to the social profile of de Volksbank and, therefore, our distinctive character in the financial sector. We see our views and arguments reflected in NLFI’s advice. The analysis thus mirrors the dialogue with our shareholder NLFI about our future. As far as de Volksbank is concerned, we ​​look forward to continuing this constructive dialogue. At the same time, our focus is on the rapid implementation of the strategy and priorities and the continued strengthening of the bank’s operational and financial robustness, so that we can continue to contribute to the diversity of the Dutch banking landscape as a systemic bank with a social character.

Both the letters to the House of Representatives of June 2024 and October 2023 and the Ministry of Finance’s exploration of the future options, can be found on the website of the Dutch House of Representatives (available in Dutch only).

In addition, we also provide the Pillar 3 Report 2023, containing the mandatory reporting on capital requirements and risk management ensuing from the European Capital Requirements Regulation (CRR).

The reports are available here. 

As a consequence of this change in the Executive Committee, the position of Chief Transformation Officer (CTO) will cease to exist. CTO Marjolein de Jongh is responsible for the transformation of de Volksbank into an agile bank and also has KYC in her portfolio. By mutual agreement, she will resign from her duties as from 1 November 2023. She will remain attached to de Volksbank as an adviser to the CEO and Chair of the Supervisory Board until 1 May 2024. The Executive Committee of de Volksbank thanks Marjolein for her contribution to de Volksbank and wishes her well for the future.

Composition of the Executive Committee
As from 1 November 2023, the Executive Committee will consist of seven members. Martijn Gribnau (CEO), André Haag (CFO), Jeroen Dijst (CRO) and Marinka van der Meer (CCO) are the statutory members. In addition three non-statutory members serve on the Executive Committee, namely Jacqueline Touw-Conradi (CPOO), Michel Ruijterman (CIO) and a vacancy for the CFECO. The foregoing is subject to the advice of the Works Council.

Retail savings accounts

Business savings accounts

* The interest rates are floating rates, on an annual basis and per account.

For savings products intended for our younger customers under the age of 18, and a number of other savings products with floating rates, de Volksbank will raise the interest rate by 0.25%. For the savings products in question, please refer to our brands’ websites.

The interest rates for all savings products are available on the websites of our brands:

• ASN Bank
• RegioBank
• SNS

• Strong customer relationship: increase in the number of active multi-customers to 1,126,000 (year-end 2022: 1,087,000); customer-weighted Net Promoter Score higher at 0 (year-end 2022: -1)
• Positive impact on society: improvement of climate-neutral balance sheet to 66% (year-end 2022: 62%), mainly due to an increase in purchased climate bonds and investments in renewable energy projects 
   

Growth in residential mortgages, SME loans and AuM; retail savings stable

• Increase in residential mortgage portfolio to € 48.5 billion (year-end 2022: € 48.3 billion). Decrease in new mortgage production to € 2.2 billion (1H22: € 4.3 billion) in a shrinking market due to higher interest rates
• Solid growth in SME loans of € 78 million (1H22: € 145 million) to € 1,163 million
• Retail savings stable at € 44.5 billion, reflecting our steady and diversified customer base
• Assets under management (AuM) up by € 0.3 billion at € 4.2 billion, mainly due to a rebound of stock market prices

Sharp increase in net profit due to higher total income in a favourable interest rate environment

• Net profit € 153 million higher at € 248 million; return on equity amounted to 13.6% (1H22: 5.5%)
• Total income 59% higher at € 735 million. Net interest income up 78% benefitting from rising interest rates with a positive impact on our liability margins. Net fee and commission income 38% higher; other income 40% lower as the first half of 2022 included a substantial gain on swaptions
• Operating expenses 20% higher at € 389 million, mainly driven by investments in customer integrity, banking regulations and the IT foundation, supporting our objective to become operationally a more robust and resilient organisation
• Impairment charges lower at € 8 million (1H22: € 11 million); credit quality of our loan portfolio remained sound

Capital position remains robust with capital ratios above our minimum targets

• CET1 capital ratio virtually stable at 20.4% (year-end 2022: 20.3%), as the impact of higher risk-weighted assets was offset by an increase in CET1 capital
•  Leverage ratio higher at 4.8% (year-end 2022: 4.7%), reflecting the increase in CET1 capital

Based on a supervisory review, De Nederlandsche Bank (DNB) concluded that de Volksbank has not sufficiently identified and assessed its risks of money laundering and terrorist financing

• DNB concluded that de Volksbank is in violation of the Anti-Money Laundering and Anti-terrorism Financing Act (Wwft) and imposed an instruction to improve our Systematic Integrity Risk Analysis by 1 April 2024
• DNB also announced its intention to start a procedure for imposing an administrative fine

Statement of Martijn Gribnau, Chair of the Executive Committee of de Volksbank

“In the first half of 2023, we continued to execute our strategy ‘2021-2025’. The customer relationships of our retail brands remained strong, as evidenced by a further increase in the number of active multi-customers and slightly higher customer satisfaction rates. In May 2023, for the second year in a row, ASN Bank, RegioBank and SNS ranked 1, 2 and 3 in the survey ‘most customer-friendly banks’ in the Netherlands. BLG Wonen continued to focus on expanding its distribution reach and its services to independent financial advisers. And in the most recent survey of the Fair Bank Guide de Volksbank came out on top, with a score of nine out of ten on seven ESG themes.

We recorded strong results over the first half, benefitting from the rapid increase in ECB interest rates, while the first half of 2022 was still impacted by negative rates. As a result, our net interest income rose sharply. Furthermore, the introduction in 2022 of a fee for basic banking services contributed to a continued increase in fee and commission income. At the same time, higher staff costs and initiatives to improve the robustness of our operations, most notably in the field of customer integrity and our IT foundation, led to a strong increase in operating expenses. Despite the generally lower house prices, the quality of our mortgage portfolio continued to be high, which was reflected in low impairment charges. Bottom line, this resulted in a sharp increase in net profit.

We regret that we were unable to fulfill all our gatekeeper responsibilities with regard to customer integrity and that we are at this moment in violation of certain legal requirements of the Anti-Money Laundering and Anti-terrorism Financing Act. We are fully committed to remedy the shortcomings within the timeframe imposed by DNB.

Continuous improvement of our operations is a key enabler of creating the impact we want to make and will remain a key focus in the periods ahead. Consequently, our operating expenses will remain at elevated levels in the foreseeable future, partially offsetting the positive impact of higher market interest rates on our total income. Overall, we expect a substantially higher profit for 2023 as a whole. I am confident that we will successfully execute our strategy, aimed at adding value for all our stakeholders.”

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In addition, we publish our Integrated Annual Report 2022, providing details on our financial statements, our risk management, ‘environmental, social and governance (ESG)’ aspects and the principles and standards to which we are committed. Our Pillar 3 Report 2022 contains the mandatory reporting on capital requirements and risk management ensuing from the European Capital Requirements Regulation (CRR).

The reports are available here. 

The SNP notes were issued under de Volksbank’s Green Bond Framework, which has been assessed against the EU Taxonomy as of April 2021 by ISS-ESG. For more information on our Green Bond Framework, please refer to our website.

The green SNP notes will be listed on the Luxembourg Stock Exchange.

Facts of the issue

Halfway through the implementation of our strategic plan, and with the Executive Committee and Supervisory Board at full strength, this is a natural moment for the next phase in which we further explore, work out and share the privatisation options with our shareholder NLFI. We greatly appreciate being able to actively think along with NLFI about our own future.

For us, this means that in parallel to exploring the options, we press ahead with achieving our strategy entitled ‘better for each other – from promise to impact’. Together with all our colleagues we remain fully committed to strengthening the customer relationship and increasing our social impact.

Focus on implementing our strategy in a dynamic and uncertain market environment 
•      Strong customer relationship: increase in the number of active multi-customers to 1,087,000 (year-end 2021: 1,015,000); customer-weighted Net Promoter Score lower at -1 (year-end 2021: +6), impacted by the introduction of a fixed fee for basic banking services

•      Positive impact on society: improvement of climate-neutral balance sheet to 65% (year-end 2021: 55%), mainly due to an increase in purchased climate bonds and investments in renewable energy projects

Growth in residential mortgages and SME loans; decrease in retail savings and AuM 
•      Increase in residential mortgage portfolio to € 48.3 billion (year-end 2021: € 47.2 billion). Decrease in new mortgage production to € 7.4 billion (2021: € 8.1 billion)

•      Solid growth in SME loans of € 255 million (2021: € 106 million) to € 1,085 million

•      Retail savings lower at € 44.5 billion (year-end 2021: € 45.6 billion)

•      Assets under management (AuM) € 0.8 billion lower at € 3.9 billion, driven by stock market developments

Increase in net profit due to higher total income and lower operating expenses 
•      Net profit 18% higher at € 191 million; adjusted for incidental items¹, net profit increased by 20% to € 174 million

•      Total income 17% higher at € 965 million, driven by 10% higher net interest income, exceptionally high results on financial instruments and a 31% increase in net fee and commission income

•      Operating expenses 2% lower at € 655 million, mainly driven by lower regulatory levies and staff expenses

•      Impairment charges increased to € 52 million, a swing compared to the € 58 million reversal in 2021, mainly reflecting deteriorated macroeconomic parameters used in our loan loss provisioning models

•      Return on equity of 5.2% (2021: 4.7%); adjusted for incidental items: 4.7% (2021: 4.2%) 

Capital position remains robust with capital ratios above our minimum objectives 
•      CET1 capital ratio lower at 20.3% (year-end 2021: 22.7%), mainly due to an increase in risk-weighted assets, as a result of higher short-term exposures to other financial institutions and corporates, to optimise the return on excess liquidity

•      Leverage ratio lower at 4.7% (year-end 2021: 5.1%), as the ECB relief measure expired on 1 April 2022; the issuance of € 300 million in green Additional Tier 1 notes strengthened our leverage ratio

•      Proposed dividend for 2022: € 90 million (2021: € 97 million), corresponding to a 50% pay-out ratio

Martijn Gribnau, Chair of the Executive Committee of de Volksbank: “Over the past year, the bank operated in a turbulent environment in which inflation and interest rates increased sharply. At the same time, the trend of increasing house prices came to an end, while economic growth slowed down. All this affected the financial position and purchasing power of consumers. 

In these turbulent times, our brands continued to actively engage with their customers to strengthen the relationship, organising several events to discuss topics such as equal access to financial knowledge, accessibility to the housing market, regional developments and sustainable investing. We further improved our climate-neutral balance sheet and published our Climate Action Plan, outlining our goal to achieve a net zero balance sheet by 2050, or sooner if possible. 

Taking into account the changing economic and interest rate environment, we continued to make commercial and financial progress. In the first two years of the strategic period 2021-2025, we focussed on growing our active multi-customer base, increasing fee income, changing our organisation towards an agile way of working, as well as installing a new leadership team. Making our business operations more robust is a necessary condition for creating the impact we want to make, both at customer and social level. In the years to come, the challenge is to increasingly move from ‘promise’ to ‘impact’, while making additional investments to improve IT systems, data quality and meet regulatory and compliance requirements, especially in the field of KYC. I am confident that we will succeed in executing our strategy.” 
 

¹ Incidental items: in 2022 a release of a restructuring provision of €23m (pre-tax) and in 2021 a positive impact of €22m (pre-tax) as a result of the revaluation of a previous contribution made under the Deposit Guarantee Scheme in relation to the insolvency of DSB

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Developments in long-term objectives:

• Customers: increase in the number of active multi-customers to 1,047,000 (year-end 2021: 1,015,000); customer-weighted Net Promoter Score lower at +3 (year-end 2021: +6)
• Society: improvement of our climate-neutral balance sheet to 58% (year-end 2021: 55%)
• Employees: Genuine attention KPI score virtually stable at 7.7 (year-end 2021: 7.8)
• Shareholder: Return on Equity stable at 5.5% (1H21: 5.5%)

Good growth in new mortgage production and SME loans; retail savings virtually stable

• Increase in new mortgage production to € 4.3 billion (1H21: € 3.3 billion); residential mortgage portfolio, excluding IFRS value adjustments, up to € 48.0 billion (year-end 2021: € 47.2 billion)
• SME loans up by € 145 million (1H21: € 44 million) to € 975 million
• Retail savings virtually stable at € 45.7 billion (year-end 2021: € 45.6 billion)
• Assets under management € 0.8 billion lower at € 4.0 billion, driven by declining stock markets

Net profit virtually stable at € 95 million (1H21: € 94 million), supported by high results on financial instruments and higher fee and commission income

• Total income 11% higher at € 463 million, driven by high results on financial instruments (especially on swaptions, driven by increasing market interest rates) and a 20% increase in net fee and commission income. Net interest income 5% lower at € 372 million
• Operating expenses € 1 million higher at € 323 million; operating expenses adjusted for incidental items 2% lower
• Impairment charges of financial assets were limited at € 11 million (1H21: a reversal of € 31 million)

Capital position remains robust, with capital ratios above our minimum objectives. Decrease in CET1 capital ratio and leverage ratio

• CET1 capital ratio lower at 20.8% (year-end 2021: 22.7%) mainly due to an increase in risk-weighted assets, driven by higher exposures to other financial institutions to optimise the return on excess liquidity; the Basel IV fully loaded CET1 capital ratio was lower at 20.8% (year-end 2021: 22.5%)
• Lower leverage ratio of 4.6% (year-end 2021: 5.1%), as the ECB relief measure expired per 1 April 2022. The issuance of € 300 million Additional Tier 1 notes strengthened the leverage ratio

Martijn Gribnau, CEO of de Volksbank: “In the first half of 2022 we made further progress with our strategy, aimed at strengthening the customer relationship and increasing our social impact. In May, our brands RegioBank, SNS and ASN Bank were voted number 1, 2 and 3 as the most customer-friendly banks in the Netherlands. An accomplishment which underlines our customers’ appreciation for our course and that we have achieved together with our employees. We improved our climate-neutral balance sheet and our brands took several initiatives to contribute positively to society.

A year and a half after introduction, the results of our strategy are becoming visible. Going forward, we are adjusting our business model through the introduction of a monthly fee for basic banking services. We will continue to focus on building a more robust financial and operational organisation. To further strengthen our customer relationship and increase our social impact, we will keep investing in our employees, products, services, data and IT infrastructure.”

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Developments in long-term objectives:

• Customers: customer-weighted Net Promoter Score higher at +6 (year-end 2020: +2); increase in the number of active multi-customers to 1,015,000 (year-end 2020: 949,000)
• Society: climate-neutral balance sheet amounts to 55%, calculated using the PCAF methodology (year-end 2020 recalculated: 45%)
• Employees: Genuine attention KPI score at 7.8 (year-end 2020: 7.9)
• Shareholder: Return on Equity of 4.7% (2020: 5.1%)

Growth in current account customers, mortgages, SME loans, retail savings and AuM

• Number of current account customers increased by 124,000 to 1.78 million
• Residential mortgage portfolio, excluding IFRS value adjustments, up to € 47.4 billion (year-end 2020: € 46.2 billion). Increase in new mortgage production to € 8.1 billion (2020: € 6.1 billion) and redemptions to € 7.0 billion (2020: € 6.5 billion); market share of new mortgage loans higher at 5.8% (2020: 5.0%)
• SME loans rose by € 117 million to € 841 million
• Retail savings increased by € 3.5 billion to € 45.6 billion; market share higher at 11.3% (2020: 10.8%)
• Assets under management (AuM) rose by € 0.8 billion to € 4.75 billion

Decrease in net profit to € 162 million, driven by continued pressure on net interest income and higher operating expenses, partly offset by a reversal of impairment charges 

• Net profit 7% lower at € 162 million. Adjusted for incidental items1, net profit decreased by 30% to € 145 million
• Total income 10% lower at € 827 million, mainly driven by pressure on net interest income
• Increase in operating expenses by 2% to € 667 million, despite a € 67 million positive swing in incidental items*; adjusted operating expenses up 14%, mainly due to higher staff costs and regulatory levies, and the implementation of the new strategy 
• Reversal of impairment charges of financial assets of € 58 million (2020: a € 38 million charge) due to a more positive macroeconomic outlook and higher house prices, despite a higher management overlay

Robust capital position, despite a decrease in CET1 capital ratio

• CET1 capital ratio lower at 22.7% (year-end 2020: 31.2%) as risk-weighted assets increased, mainly due to a temporary and voluntary add-on related to our internal credit risk model for residential mortgages; the Basel IV fully loaded CET1 capital ratio was lower at 22.5% (year-end 2020: 24.2%)
• Leverage ratio of 5.1% (year-end 2020: 5.2%)
• Proposed dividend for 2021: € 97 million (60% of net profit)

Martijn Gribnau, Chairman of the Board of Directors of de Volksbank: “In 2021 we took a big step forward in the execution of our strategy. Our brands have shown growth, which was reflected in strong commercial developments as well as high customer satisfaction rates. In contrast to the sound commercial developments, 2021 was a challenging year financially. Interest rates remained low, putting pressure on our total income and net profit. This underscores the urgency to come up with new initiatives so that our income becomes less sensitive to interest rates. We also focus on cost reductions, while making the investments necessary to improve our IT platform. In 2022, we will press on to implement our strategy and take the next step in the further development of our services. We will get even closer to our customers in order to gradually offer more services that seamlessly match their specific needs and life situations. We will do so both digitally and in local communities, always keeping a human touch in mind. Last year, we laid the groundwork for an agile way of working and the new organisation is set to start on 1 March. I am confident that the execution of our strategy will enable us to grow total income and improve operational efficiency in the coming years.”

* Incidental items: in 2020 a restructuring charge of €45m (pre-tax) and in 2021 a positive impact of €22m (pre-tax) as a result of the revaluation of a previous contribution made under the Deposit Guarantee Scheme in relation to the insolvency of DSB
 
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