Credit Europe Bank: stable and profitable in challenging year

08.04.2010

• Total assets to €9.96 bln, up 4% compared to end 2008
• Total capital adequacy ratio to 12.57%, up from 12.41% in 2008
• Net profit down from record level of €75 mln in 2008 to €51 mln as a result of de-risking the balance sheet and a conservative level of liquidity
 
TC Beriker, CEO of Credit Europe Bank: “Credit Europe Bank NV remained stable and profitable in another challenging year. The balance sheet increased slightly and capital ratios further strengthened. Overall, our subsidiaries contributed substantially to our profitability and demonstrated their increased capability to fund themselves. In Western Europe, we generated a modest growth of deposits. High asset quality as well as effective cost management helped to increase the cost/income ratio and to achieve a satisfactory net income.

The bank has reported positive results since its foundation in 1994, while constantly growing the balance sheet.  We will continue our long term strategy to maintain the balance between emerging markets risk and exposure to G10 and other developed countries.

In 2010 we expect that our trade finance volume will pick up and we foresee further growth in our subsidiaries. We are positive about acquiring a franchise in Turkey with the Millennium Bank AS transaction which is subject to regulatory approvals. Next to other markets in the east, this will enable us to increase local funding also in Turkey.”
 
Direct Retail Banking in Germany, the Netherlands, Belgium and Malta:
• Total savings and deposits increased from €5.3 billion at the end of 2008 to €5.6 bln at the end of 2009. The focus was on keeping loyal customers satisfied by offering attractive interest rates on long term deposits, while converting daily withdrawals to longer maturities. Time deposits now amount to more than 61% of all savings and deposits.
• Consumer credits are picking up with volumes reaching €343 mln at year-end, compared to €322 mln at the end of 2008. In 2010, the bank will focus more on expanding consumer finance. The bank did consider acquiring attractive retail loan portfolios in the last months, but decided to focus on organic growth or await better opportunities for acquisitions.
• Extraordinary costs for obligations under the Dutch Deposit Guarantee Scheme: In 2009, a total amount of €11 mln was booked.

Developments in the Bank’s subsidiaries:
• In Russia, the bank further builds on its exclusive IKEA, Metro, Mega and Auchan credit card programs. Our subsidiary in Russia was especially successful in the market for car loans and consumer loans in terms of lending volume, holding 6th and 14th positions, respectively, among Russian banks, as of June 2009.
• In October 2009, our subsidiary in Russia placed a Eurobond of US$ 150 mln. It was the first issue of a privately owned bank in Russia since the capital markets reopened after the credit crisis.
• Credit Europe Bank Romania maintained its #1 position in Romanian credit cards.
• Effective cost management measures were taken in Romania, Russia and Ukraine to bring the cost base of the banks in line with economic conditions.
• Following the foundation of Credit Europe Bank (Dubai) late 2008, the bank in the United Arab Emirates already operates profitably in the year 2009, focusing mainly on corporate banking activities.
• Credit Europe Bank in Switzerland operated profitably, maintaining its focus on Private Banking and Corporate Banking; assets under custody and management reached €1.5 billion. 

Corporate Banking:
• Given the worsening market conditions in trade and commodity finance the amount of fees and commissions earned by our corporate banking department went down from €11.6 mln to €6.4 mln.
• Following our focus on attracting new customers, and helped by many banks’ lower appetite for corporate loans and financing commodity trade, we were able to double the number of credit clients in the second half of 2009. In 2010 we foresee to service higher trade volumes, as the clients acquired in 2009 will reach higher limit utilization levels, even assuming that trade volumes and prices will remain stable as expected at this moment.

Please find further information on the balance sheet on http://www.crediteuropebank.com/fb/sites/com/en/downloads/download_files/financial_information/2009_results_overview.pdf

Background on Credit Europe Bank
Founded in 1994, Credit Europe Bank NV has grown towards a solid, international financial services group, ranked in the top 10 of Dutch banks with a total balance sheet of around 10 billion euro. Serving around three million customers worldwide with more than 5,000 employees working from close to 200 branches, 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
www.crediteuropebank.com

Top   Print Version