Credit Europe Bank’s net profit up 25% to €74.5 million

02.04.2009

“Traditional banking model delivers stability and growth in difficult year 2008”

• Total assets up 27% to €9.5 billion
• Retail deposits in Western Europe increased to €5.2 billion, representing 54% of total liabilities.
• Net income over full year 2008 up 25% to €74.5 million, despite market turmoil and fair value adjustments in Q4
• Tier-I ratio up from 8.4% to 9.04%
• Credit Exposure: 32% in G10 countries, 21% in Romania, 19% in Russia, 19% in Turkey, 4% in Ukraine. Credit exposure via  subsidiaries in Russia, Romania and Ukraine reduced as of Q3 2008
• Record transaction volume in commodity finance and project finance: $12.5 billion, up from $12 billion

Despite the volatile financial markets in 2008, Credit Europe Bank strengthened its position as a solid international financial services group, growing towards the top 10 of Dutch banks as measured by total balance sheet size. In the field of commodity finance and project finance, the bank achieved a record transaction volume of $12.5 billion (2007: $12 billion), though it applied stricter risk control mechanisms to its counterparties because of the volatility on the markets.  The direct retail business in the euro-zone countries Belgium, Germany, Malta and the Netherlands pursued its long term growth strategy and increased the total deposit size to €5.2 billion (2007: €2.9 billion).

Outside the euro-zone, the bank further consolidated its position in commercial banking activities:
• In Romania, Credit Europe Bank maintained its #1 position in distribution of credit cards;
• Credit Europe Bank Russia added IKEA Russia as an exclusive partner to its co-branded credit card program, building on successful programs as established earlier with Metro and Auchan. The bank maintained its top 10 position in credit cards and consumer loans in the Russian Federation
• Credit Europe Bank Dubai started operations after having been granted a category 1 banking license by the Dubai Financial Services Authority;
• Assets under management of Credit Europe Bank in Switzerland reached $2.36 billion; and
• Credit Europe Bank Ukraine established its market presence and infrastructure.

TC Beriker, CEO of Credit Europe Bank:
 “I am pleased to conclude that Credit Europe Bank has shown stability and growth in a difficult environment. Assets size has increased substantially and also our net profit has shown a strong increase. Our traditional banking model, focusing on trade and project finance, commercial banking and retail banking has proven to be successful. Also in difficult market circumstances we have been able to retain our clients’ trust. We will maximize our focus on matching our short term credits with funding and will enrich the commodity finance franchise by adding new commodities next to metals, petrochemicals, agrochemicals, energy and soft commodities.”
 
Key figures (millions of euro)

                                  End 2008  End 2007  Growth
Balance Sheet
Balance Sheet total          9,541       7,486       27%  
Loans to customers         6,323       5,970       17%
Customer deposits           6,802       4,650       46%
Capital base                       902          757        19%

Profit & Loss
Income before tax              101           84         20%  
Net income                          75            60         25%
Tier I ratio                           9.04%       8.4%
Capital Adequacy ratio     12.24%    12.46%

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

Background on Credit Europe Bank
Founded in 1994 in Amsterdam, Credit Europe Bank is a solid international financial services group, ranking in the top 10 of Dutch banks. The bank’s strategy is to offer tailor made services in trade and commodity finance as well as to offer smart retail products delivered efficiently. The bank is under full supervision of the Dutch Central Bank (de Nederlandsche Bank).

As per end of 2008, Credit Europe Bank had a total balance of €9.5 billion and the bank employed over 6,000 professionals working in the euro-zone countries Belgium, Germany, Malta and the Netherlands as well as in China, Dubai, Romania, Russia, Switzerland, Turkey and Ukraine, serving more than 3 million customers worldwide. 

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