Annual results 2022: BNG Bank achieves healthy results and enables clients to make an impact

Gita Salden, Chief Executive Officer, BNG Bank: “I am proud that BNG Bank has steered in the right direction in these turbulent times and is again the market leader in the public domain. We managed to remain calm and confident. We did what we are good at: providing favourable loans to the public sector and helping our clients find high-impact solutions.

From a banking perspective, 2022 was a good year for BNG Bank with healthy financial results. We were able to raise funding on favourable terms thanks to our strong capital position. This enabled us to offer our clients attractive conditions, thus helping them to achieve their social objectives.

As part of our Our Road to Impact strategy, BNG Bank further optimised its operations in 2022. In the interest of the client, we invested in systems and people. In addition, we presented our Going Green climate plan. With this climate plan, BNG Bank is taking a next step on the road to energy transition and CO₂ reduction. Together with our clients such as municipalities, housing associations, healthcare and educational institutions and energy companies, we want to make the Netherlands more sustainable, more future-proof and greener. The point of departure here is that BNG Bank is the bank of and for the public domain.”

Financial results

BNG Bank is satisfied with the financial results achieved in 2022. The developments in Ukraine, the disruptions in the global supply chain, high energy prices and high inflation did not have material financial impact. During the 2022 reporting year, BNG Bank recorded a net profit of EUR 300 million. The net profit in 2021 was EUR 236 million. The rise in net profit was due primarily to an increase in the interest result and a higher realised result on financial transactions on account of the liquidity portfolio.

The interest result amounted to EUR 481 million in 2022, compared to EUR 407 million in 2021. BNG Bank regards its interest result as structurally healthy.

Despite the interest rate rise and its potential impact on clients’ investment decisions, the total long-term loan portfolio amounted to EUR 88 billion at year-end 2022. This represents a net increase of EUR 1 billion. The volume of new long-term lending was EUR 12.3 billion in 2022, compared to EUR 12.8 billion in 2021. Loan applications increased during the first half of 2022. Municipalities in particular were anticipating the interest rate rise and brought forward their demand for lending.

BNG Bank’s capitalization is robust. At year-end 2022, the Common Equity Tier 1 ratio and Tier 1 ratio were 35% and 37%, respectively. Rating agencies Fitch, Moody's and S&P again awarded BNG Bank with the highest possible credit ratings. This means that BNG Bank is among the safest banks in the world. Based on this fact, BNG Bank was able throughout the year to attract funding in various currencies and at attractive rates, for both the short and long term. BNG Bank increasingly uses ESG bonds under its Sustainable Finance Framework to raise funding. This figure was still below 30% in 2021, but grew to 36% in 2022. 

In line with its current policy, BNG Bank proposes to distribute 50% of the net profit, adjusted for the additional Tier 1 capital payout. This represents a dividend distribution of EUR 139 million, which is EUR 2.50 per share.

BNG Bank – Driven by social impact