Notes to the Company Financial Statements
|
Cash and balances with central banks |
|
|
1 |
|
In EUR millions |
2008 |
2007 |
||
|
Cash and balances with central banks |
1,113 |
874 |
||
|
1,113 |
874 |
The amounts included in this item are available on demand. Cash and balances with central banks are interest bearing.
The fair value of this balance sheet item does not materially deviate from its face value, due to the short-term nature of the underlying assets.
|
Due from other banks |
|
|
2 |
|
In EUR millions |
2008 |
2007 |
||
|
Current accounts |
76 |
48 |
||
|
Deposits with other banks |
1,446 |
2,284 |
||
|
Due from group companies |
513 |
446 |
||
|
2,035 |
2,778 |
|
In EUR millions |
2008 |
2007 |
||
|
Receivable on demand |
176 |
756 |
||
|
Not receivable on demand |
1,859 |
2,022 |
||
|
2,035 |
2,778 |
|
In EUR millions |
2008 |
2007 |
||
|
The legal maturity analysis of the items not receivable on demand is analysed as follows: |
||||
|
In three months or less |
1,481 |
1,621 |
||
|
In more than three months but not longer than one year |
32 |
5 |
||
|
In more than one year but not longer than five years |
18 |
1 |
||
|
Longer than five years |
328 |
395 |
||
|
1,859 |
2,022 |
Subordinated loans included in this item amount to EUR 0 million (2007: EUR 5 million).
The fair value of this balance sheet item does not materially deviate from its face value, due to the short-term nature of the underlying assets and the credit quality of the counterparties.
Other than from group companies, NIBC does not have receivables from other participating interests. There were no impairments recorded in 2008 and 2007 on this balance sheet item.
|
Loans and receivables |
|
|
3 |
|
In EUR millions |
2008 |
2007 |
||
|
Loans - Amortised Cost |
5,489 |
1,701 |
||
|
Loans - Available for Sale |
- |
4,455 |
||
|
Loans - Fair Value through Profit or Loss |
1,841 |
2,103 |
||
|
Public sector - Available for Sale |
38 |
59 |
||
|
Group companies - Amortised Costs |
7,167 |
6,947 |
||
|
14,535 |
15,265 |
|
In EUR millions |
2008 |
2007 |
||
|
The legal maturity analysis of the loans and receivables is analysed as follows: |
||||
|
In three months or less |
5,284 |
4,031 |
||
|
In more than three months but not longer than one year |
203 |
1,533 |
||
|
In more than one year but not longer than five years |
2,209 |
2,195 |
||
|
Longer than five years |
6,839 |
7,506 |
||
|
14,535 |
15,265 |
|
In EUR millions |
2008 |
2007 |
||
|
Impairment losses on loans and receivables: |
||||
|
Balance at 1 January |
60 |
76 |
||
|
Impairment losses recognised: |
||||
|
Additional allowances |
71 |
15 |
||
|
Write-offs |
(8) |
(9) |
||
|
Amounts released |
(25) |
(13) |
||
|
Unwinding of discount adjustment |
(4) |
(5) |
||
|
94 |
64 |
|||
|
Differences due to foreign currency translation |
(4) |
(4) |
||
|
Impact IAS 39 amendments |
(76) |
- |
||
|
Balance at 31 December |
14 |
60 |
The amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows (excluding future credit losses that have not been incurred) discounted at the financial asset’s original effective interest rate.
Impairment losses of Loans at Available for Sale are defined to be the difference between the fair value of loans that exhibit indicators of impairment and original cost.
The maximum credit risk exposure for loans including undrawn credit facilities amounts to EUR 8,812 million in 2008 (2007: EUR 10,164 million), (excluding the group companies).
The total amount of subordinated loans in this item, as at 31 December 2008, amounts to EUR 2 million (2007: EUR 135 million). An amount of EUR 0 million (2007: EUR 6 million) of subordinated loans is included with respect to group companies.
EUR 38 million (2007: EUR 59 million) of loans to the public sector at Available for Sale is guaranteed by the State of the Netherlands.
If NIBC had fair valued the Loans classified as Amortised Cost, then the balance sheet amount would decrease at the balance sheet date by EUR 380 million (2007: EUR 10 million). This decrease reflects both changes due to interest rates and credit spreads.
As a policy, NIBC does not provide loans to its executives.
EUR 76 million relates to the impact of the IAS 39 implementation. This reflects the reclassification of the impairments related to the Available for Sale Loans to the Loans category at Amortised Cost. The total amount of Loans in the Available for Sale category net of impairments has been reclassified to the Loans category at Amortised Cost, as at 1 July 2008.
For the impact of the implementation of IASB amendments ‘IAS 39 Financial Instruments: Recognition and Measurements’ on the Income Statement and on Shareholders’ equity see notes to the Consolidated Financial Statements 2008 of NIBC.
|
Interest bearing securities |
|
|
4 |
|
In EUR millions |
2008 |
2007 |
||
|
Amortised Cost |
809 |
- |
||
|
Held for Trading |
98 |
1,410 |
||
|
Available for Sale |
34 |
309 |
||
|
Fair Value through Profit or Loss |
1,491 |
1,699 |
||
|
2,432 |
3,418 |
The table above displays the IFRS accounting treatment of interest bearing securities.
|
In EUR millions |
2008 |
2007 |
||
|
Interest bearing securities held for trading can be categorised as follows: |
||||
|
Listed |
98 |
1,361 |
||
|
Unlisted |
- |
49 |
||
|
98 |
1,410 |
All Held for Trading interest bearing securities are non-government.
|
In EUR millions |
2008 |
2007 |
||
|
Interest bearing securities designated as fair value through profit or loss, available for sale and amortised cost can be categorised as follows: |
||||
|
Government |
- |
281 |
||
|
Non-government |
2,334 |
1,727 |
||
|
2,334 |
2,008 |
|
In EUR millions |
2008 |
2007 |
||
|
Listed |
1,271 |
878 |
||
|
Unlisted |
1,063 |
1,130 |
||
|
2,334 |
2,008 |
|
In EUR millions |
2008 |
2007 |
||
|
The legal maturity analysis of interest bearing securities designated as fair value through profit or loss, available for sale and amortised cost is analysed as follows: |
||||
|
In three months or less |
51 |
89 |
||
|
In more than three months but not longer than one year |
753 |
484 |
||
|
In more than one year but not longer than five years |
897 |
983 |
||
|
Longer than five years |
633 |
452 |
||
|
Balance at 31 December |
2,334 |
2,008 |
|
In EUR millions |
2008 |
2007 |
||
|
The movement in interest bearing securities designated as fair value through profit or loss, available for sale and amortised cost may be summarised as follows: |
||||
|
Balance at 1 January |
2,008 |
2,234 |
||
|
Additions |
871 |
749 |
||
|
Disposals (sale and redemption) |
(1,372) |
(866) |
||
|
Impact IAS39 amendments |
888 |
- |
||
|
Exchange differences |
(32) |
(30) |
||
|
Changes in fair value |
(29) |
(79) |
||
|
Balance at 31 December |
2,334 |
2,008 |
Subordinated assets included in Interest bearing securities amount to EUR 19 million (2007: EUR 151 million).
Interest bearing securities do not include assets issued and bought by NIBC for market making purposes. Any such assets are eliminated from the Balance Sheet.
Interest income from interest bearing securities and other fixed-income instruments is recognised in Interest and similar income at the effective interest rate. Fair value movements (excluding interest) are recognised in Net trading income.
The portion of fair value changes in 2008 included in the balance sheet amount (designated as Fair Value through Profit or Loss) as at 31 December 2008 relating to the movement in credit spreads amounts to EUR 21 million credit, being a reduction in the carrying value of the assets (2007: EUR 9 million credit).
For interest bearing securities at Amortised Cost the maximum credit exposure including unused Debt investments at Amortised Cost amounts to EUR 825 million (2007: nil). The other interest bearing securities are reported at fair value which represents the maximum credit exposure for these assets.
If NIBC had fair valued the interest bearing securities classified as Amortised Cost, then the balance sheet amount would decrease at the balance sheet date by EUR 168 million (2007: nil). This decrease reflects both changes due to interest rates and credit spreads.
No impairments were recorded in 2008 and 2007 on Interest bearing securities at Amortised Cost.
As at 1 July 2008, debt investments from the Available for Sale and Held for Trading category were reclassified to debt investments at Amortised Costs.
For the impact of the implementation of IASB amendments ‘IAS 39 Financial Instruments: Recognition and Measurements’ on the Income Statement and on Shareholders’ equity see notes to the Consolidated Financial Statements 2008 of NIBC.
|
Equity investments |
|
|
5 |
|
In EUR millions |
2008 |
2007 |
||
|
Equity investments |
17 |
30 |
||
|
17 |
30 |
|
In EUR millions |
2008 |
2007 |
||
|
Listed |
8 |
18 |
||
|
Unlisted |
9 |
12 |
||
|
17 |
30 |
|
In EUR millions |
2008 |
2007 |
||
|
The movement in equity investments may be summarised as follows: |
||||
|
Balance at 1 January |
30 |
35 |
||
|
Disposals (sale and capital repayments) |
- |
(3) |
||
|
Gains/(losses) from changes in fair value |
(13) |
(2) |
||
|
Balance at 31 December |
17 |
30 |
|
In EUR millions |
2008 |
2007 |
||
|
Impairment losses on equity investments: |
||||
|
Balance at 1 January |
8 |
9 |
||
|
Impairment losses recognised: |
||||
|
Additional allowances |
- |
- |
||
|
Write-offs |
- |
(1) |
||
|
Amounts released |
- |
- |
||
|
Balance at 31 December |
8 |
8 |
Equity investments are accounted for as Available for Sale.
Impairment losses are defined as the difference between the fair value of equity investments that exhibit indicators of impairment and original cost.
|
Participating interests in group companies |
|
|
6 |
|
In EUR millions |
2008 |
2007 |
||
|
Participating interests |
877 |
980 |
||
|
877 |
980 |
|
In EUR millions |
2008 |
2007 |
||
|
Balance at 1 January |
980 |
881 |
||
|
Purchases and investments |
- |
194 |
||
|
Disposals |
(5) |
(24) |
||
|
Revaluation |
(54) |
(29) |
||
|
Dividend received |
(47) |
(6) |
||
|
Results of group companies |
- |
(18) |
||
|
Exchange differences |
3 |
(18) |
||
|
Balance at 31 December |
877 |
980 |
The group companies are not listed.
Participating interests in group companies are accounted for at net asset value.
NIBC Bank Ltd included in group companies is a registered credit institution.
|
Other participating interests |
|
|
7 |
|
In EUR millions |
2008 |
2007 |
||
|
Other participating interests |
2 |
1 |
||
|
2 |
1 |
|
In EUR millions |
2008 |
2007 |
||
|
Balance at 1 January |
1 |
3 |
||
|
Purchases and investments |
2 |
1 |
||
|
Disposals |
(1) |
- |
||
|
Impairment |
- |
(3) |
||
|
Balance at 31 December |
2 |
1 |
Other participating interests are accounted for at net asset value.
On the balance sheet dates at the end of 2008 and 2007, all Other participating interests were unlisted.
The Other participating interests are not registered as credit institutions.
There are no significant restrictions on the ability of Other participating interests to transfer funds to the investor in the form of cash dividends, or repayment of loans.
There is no unrecognised share of losses of Other participating interests, both for the period and cumulatively.
|
Property, plant and equipment |
|
|
8 |
|
In EUR millions |
2008 |
2007 |
||
|
Land and buildings (in own use) |
10 |
45 |
||
|
Other fixed assets |
5 |
7 |
||
|
15 |
52 |
|
In EUR millions |
2008 |
2007 |
||
|
The movement in property, plant and equipment may be summarised as follows: |
||||
|
Balance at 1 January |
52 |
61 |
||
|
Additions |
2 |
7 |
||
|
Transferred to assets held under financial lease |
(32) |
- |
||
|
Depreciation |
(7) |
(16) |
||
|
Balance at 31 December |
15 |
52 |
|
In EUR millions |
2008 |
2007 |
||
|
The accumulated deprecation in property, plant and equipment can be categorised as follows: |
||||
|
Land and buildings (in own use) |
7 |
17 |
||
|
Other fixed assets |
16 |
13 |
||
|
23 |
30 |
For information about insurance of Property, plant and equipment, please refer to note 31 of the Consolidated Financial Statements.
There are no Property, plant and equipment pledged as security for liabilities.
There are no expenditures recognised in the carrying amount of Property, plant and equipment in the course of its construction at 31 December 2008 and 31 December 2007.
There are no contractual commitments for the acquisition of Property, plant and equipment at 31 December 2008 and 31 December 2007.
The fair value of land and buildings does not materially deviate from its face value.
NIBC’s land and buildings in own use were last revalued as of 31 December 2006 based on an external appraisal carried out in January 2007.
|
Assets held under financial lease |
|
|
9 |
|
In EUR millions |
2008 |
2007 |
||
|
Assets held under financial lease |
32 |
- |
||
|
32 |
- |
|
In EUR millions |
2008 |
2007 |
||
|
Movements in assets held under financial lease were as follows: |
||||
|
Balance at 1 January |
- |
- |
||
|
Transferred from property, plant and equipment |
32 |
- |
||
|
Balance at 31 December |
32 |
- |
Assets held under financial lease are pledged as security for liabilities to group companies.
|
Derivative financial instruments |
|
|
10 |
|
In EUR millions |
2008 |
2007 |
||
|
Derivative financial assets: |
||||
|
Derivative financial assets Held for Trading (trading portfolios) |
3,066 |
2,165 |
||
|
Derivative financial assets Held for Trading (other portfolios) |
637 |
719 |
||
|
Derivative financial assets used for hedging |
216 |
85 |
||
|
3,919 |
2,969 |
|||
|
Derivative financial liabilities: |
||||
|
Derivative financial liabilities Held for Trading (trading portfolios) |
3,100 |
2,031 |
||
|
Derivative financial liabilities Held for Trading (other portfolios) |
572 |
616 |
||
|
Derivative financial liabilities used for hedging |
42 |
53 |
||
|
3,714 |
2,700 |
|
Derivative financial instruments - Held for Trading (trading portfolios) at 31 December 2008 |
||||||||||||
|
in EUR millions |
Notional amount with remaining life of |
|||||||||||
|
Less than three months |
Between three months and one year |
More than one year |
Total |
Assets |
Liabilities |
|||||||
|
Interest rate derivatives |
||||||||||||
|
OTC-products: |
||||||||||||
|
Forward rate agreements |
750 |
- |
- |
750 |
4 |
16 |
||||||
|
Interest rate swaps |
11,228 |
11,901 |
83,255 |
106,384 |
2,419 |
2,525 |
||||||
|
Interest rate options (purchase) |
- |
42 |
685 |
727 |
13 |
- |
||||||
|
Interest rate options (sale) |
11 |
91 |
619 |
721 |
- |
12 |
||||||
|
Subtotal |
11,989 |
12,034 |
84,559 |
108,582 |
2,436 |
2,553 |
||||||
|
Currency derivatives |
||||||||||||
|
OTC-products: |
||||||||||||
|
Currency/cross currency swaps |
154 |
1,180 |
2,970 |
4,304 |
582 |
502 |
||||||
|
Subtotal |
154 |
1,180 |
2,970 |
4,304 |
582 |
502 |
||||||
|
Other derivatives |
||||||||||||
|
OTC-products: |
||||||||||||
|
Other swaps |
- |
14 |
967 |
981 |
12 |
23 |
||||||
|
Other options (purchase) |
- |
10 |
153 |
163 |
36 |
- |
||||||
|
Other options (sale) |
- |
10 |
153 |
163 |
- |
22 |
||||||
|
Subtotal |
- |
34 |
1,273 |
1,307 |
48 |
45 |
||||||
|
Total derivatives held for trading (trading portfolios) |
12,143 |
13,248 |
88,802 |
114,193 |
3,066 |
3,100 |
||||||
|
Derivative financial instruments - Held for Trading (trading portfolios) at 31 December 2007 |
||||||||||||
|
in EUR millions |
Notional amount with remaining life of |
|||||||||||
|
Less than three months |
Between three months and one year |
More than one year |
Total |
Assets |
Liabilities |
|||||||
|
Interest rate derivatives |
||||||||||||
|
OTC-products: |
||||||||||||
|
Forward rate agreements |
8,925 |
12,975 |
- |
21,900 |
35 |
39 |
||||||
|
Interest rate swaps |
14,268 |
12,918 |
80 |
27,266 |
1,097 |
1,151 |
||||||
|
Interest rate options (purchase) |
- |
33 |
749 |
782 |
9 |
- |
||||||
|
Interest rate options (sale) |
2 |
28 |
675 |
705 |
- |
13 |
||||||
|
Subtotal |
23,195 |
25,954 |
1,504 |
50,653 |
1,141 |
1,203 |
||||||
|
Currency derivatives |
||||||||||||
|
OTC-products: |
||||||||||||
|
Currency/cross currency swaps |
1 |
3,546 |
4,177 |
7,724 |
953 |
754 |
||||||
|
Subtotal |
1 |
3,546 |
4,177 |
7,724 |
953 |
754 |
||||||
|
Other derivatives |
||||||||||||
|
OTC-products: |
||||||||||||
|
Other swaps |
131 |
20 |
2,742 |
2,893 |
5 |
8 |
||||||
|
Other options (purchase) |
36 |
24 |
176 |
236 |
66 |
- |
||||||
|
Other options (sale) |
36 |
24 |
176 |
236 |
- |
66 |
||||||
|
Subtotal |
203 |
68 |
3,094 |
3,365 |
71 |
74 |
||||||
|
Total derivatives held for trading (trading portfolios) |
23,399 |
29,568 |
8,775 |
61,742 |
2,165 |
2,031 |
||||||
|
Derivative financial instruments - Held for Trading (other portfolios) at 31 December 2008 |
||||||||||||
|
in EUR millions |
Notional amount with remaining life of |
|||||||||||
|
Less than three months |
Between three months and one year |
More than one year |
Total |
Assets |
Liabilities |
|||||||
|
Interest rate derivatives |
||||||||||||
|
OTC-products: |
||||||||||||
|
Interest rate swaps |
133 |
265 |
3,186 |
3,584 |
342 |
519 |
||||||
|
Subtotal |
133 |
265 |
3,186 |
3,584 |
342 |
519 |
||||||
|
Currency derivatives |
||||||||||||
|
OTC-products: |
||||||||||||
|
Forward rate agreements |
45 |
61 |
89 |
195 |
7 |
6 |
||||||
|
Interest currency rate swaps |
137 |
77 |
323 |
537 |
279 |
41 |
||||||
|
Other currency contracts |
32 |
57 |
111 |
200 |
- |
3 |
||||||
|
Subtotal |
215 |
195 |
523 |
933 |
286 |
50 |
||||||
|
OTC-products: |
||||||||||||
|
Credit Default Swaps (guarantees given) |
18 |
22 |
89 |
129 |
1 |
2 |
||||||
|
Credit Default Swaps |
- |
- |
27 |
27 |
1 |
1 |
||||||
|
Other options (purchase) |
5 |
12 |
78 |
95 |
7 |
- |
||||||
|
Subtotal |
23 |
35 |
193 |
250 |
9 |
3 |
||||||
|
Total derivatives held for trading (other portfolios) |
370 |
495 |
3,902 |
4,767 |
637 |
572 |
||||||
|
Derivative financial instruments - Held for Trading (other portfolios) at 31 December 2007 |
||||||||||||
|
in EUR millions |
Notional amount with remaining life of |
|||||||||||
|
Less than three months |
Between three months and one year |
More than one year |
Total |
Assets |
Liabilities |
|||||||
|
Interest rate derivatives |
||||||||||||
|
OTC-products: |
||||||||||||
|
Interest rate swaps |
1,033 |
2,074 |
17,201 |
20,308 |
463 |
396 |
||||||
|
Subtotal |
1,033 |
2,074 |
17,201 |
20,308 |
463 |
396 |
||||||
|
Currency derivatives |
||||||||||||
|
OTC-products: |
||||||||||||
|
Forward rate agreements |
55 |
374 |
145 |
574 |
84 |
85 |
||||||
|
Interest currency rate swaps |
2,883 |
705 |
2,269 |
5,857 |
117 |
103 |
||||||
|
Other currency contracts |
4 |
48 |
183 |
235 |
- |
5 |
||||||
|
Subtotal |
2,942 |
1,127 |
2,597 |
6,666 |
201 |
193 |
||||||
|
OTC-products: |
||||||||||||
|
Credit Default Swaps (guarantees given) |
39 |
104 |
316 |
459 |
20 |
1 |
||||||
|
Credit Default Swaps |
17 |
103 |
255 |
375 |
5 |
26 |
||||||
|
Other options (purchase) |
67 |
28 |
91 |
186 |
30 |
- |
||||||
|
Subtotal |
123 |
235 |
662 |
1,020 |
55 |
27 |
||||||
|
Total derivatives held for trading (other portfolios) |
4,098 |
3,436 |
20,460 |
27,994 |
719 |
616 |
||||||
Fair value hedges of interest rate risk
The interest rate risk of financial assets with a fixed interest rate classified as Available for Sale or as Amortised Cost are hedged with interest rate swaps under which NIBC pays a fixed rate and receives floating rates. Fair value hedge accounting is applied to these so-called hedge relationships.
Interest rate swaps under which NIBC pays a floating rate and receives a fixed rate, are used in fair value hedges of fixed interest rate liabilities (as far as not Held for Trading purposes or designated as Fair Value through Profit or Loss).
The following table discloses the fair value of the swaps designated in fair value hedging relationships.
|
In EUR millions |
2008 |
2007 |
|||
|
Fair value pay - fixed swaps (hedging assets) |
assets |
12 |
11 |
||
|
Fair value pay - fixed swaps (hedging assets) |
liabilities |
(29) |
(18) |
||
|
(17) |
(7) |
||||
|
Fair value pay - floating swaps (hedging liabilities) |
assets |
97 |
38 |
||
|
Fair value pay - floating swaps (hedging liabilities) |
liabilities |
(13) |
(36) |
||
|
84 |
2 |
Cash flow hedges of interest rate risk
The following table discloses the fair value of the swaps designated in cash flow hedging relationships.
|
In EUR millions |
2008 |
2007 |
|||
|
Fair value receive - fixed swaps |
assets |
107 |
36 |
||
|
Fair value receive - fixed swaps |
liabilities |
- |
- |
||
|
107 |
36 |
||||
|
Fair value receive - floating swaps |
assets |
- |
- |
||
|
Fair value receive - floating swaps |
liabilities |
- |
- |
||
|
- |
- |
The average remaining maturity (in which the related cash flows are expected to enter into the
determination of profit and loss) is 4 years (2007: 4 years).
|
Derivative financial instruments - Used for hedging at 31 December 2008 |
||||||||||||
|
in EUR millions |
Notional amount with remaining life of |
|||||||||||
|
Less than three months |
Between three months and one year |
More than one year |
Total |
Assets |
Liabilities |
|||||||
|
Derivatives accounted |
||||||||||||
|
OTC-products: |
||||||||||||
|
Interest rate swaps |
285 |
1,374 |
4,912 |
6,571 |
70 |
41 |
||||||
|
Interest currency rate swaps |
807 |
99 |
731 |
1,637 |
39 |
1 |
||||||
|
Subtotal |
1,092 |
1,473 |
5,643 |
8,208 |
109 |
42 |
||||||
|
Derivatives accounted |
||||||||||||
|
OTC-products: |
||||||||||||
|
Interest rate swaps |
- |
- |
429 |
429 |
107 |
- |
||||||
|
Subtotal |
- |
- |
429 |
429 |
107 |
- |
||||||
|
Total derivatives used for hedging |
1,092 |
1,473 |
6,072 |
8,637 |
216 |
42 |
||||||
|
Derivative financial instruments - Used for hedging at 31 December 2007 |
||||||||||||
|
in EUR millions |
Notional amount with remaining life of |
|||||||||||
|
Less than three months |
Between three months and one year |
More than one year |
Total |
Assets |
Liabilities |
|||||||
|
Derivatives accounted for as fair value hedges of interest rate risk |
||||||||||||
|
OTC-products: |
||||||||||||
|
Interest rate swaps |
430 |
173 |
2,326 |
2,929 |
33 |
33 |
||||||
|
Interest currency rate swaps |
7 |
65 |
243 |
315 |
16 |
20 |
||||||
|
Subtotal |
437 |
238 |
2,569 |
3,244 |
49 |
53 |
||||||
|
Derivatives accounted for as cash flow hedges of interest rate risk |
||||||||||||
|
OTC-products: |
||||||||||||
|
Interest rate swaps |
- |
- |
407 |
407 |
36 |
- |
||||||
|
Subtotal |
- |
- |
407 |
407 |
36 |
- |
||||||
|
Total derivatives used for hedging |
437 |
238 |
2,976 |
3,651 |
85 |
53 |
||||||
|
Prepayments and accrued income |
|
|
11 |
|
In EUR millions |
2008 |
2007 |
||
|
Interest |
3 |
94 |
||
|
Current tax |
12 |
45 |
||
|
Other prepayments and accrued income |
33 |
44 |
||
|
48 |
183 |
|
Current tax |
||||
|
In EUR millions |
2008 |
2007 |
||
|
Corporate tax |
12 |
45 |
||
|
12 |
45 |
|||
|
Due to other banks |
|
|
12 |
|
In EUR millions |
2008 |
2007 |
||
|
Payable on demand |
12 |
456 |
||
|
Not payable on demand |
4,088 |
3,169 |
||
|
4,100 |
3,625 |
|
In EUR millions |
2008 |
2007 |
||
|
The legal maturity analysis of due to other banks the items not payable on demand is analysed as follows: |
||||
|
In three months or less |
2,120 |
2,034 |
||
|
In more than three months but not longer than one year |
1,269 |
889 |
||
|
In more than one year but not longer than five years |
464 |
140 |
||
|
Longer than five years |
235 |
106 |
||
|
4,088 |
3,169 |
Interest is recognised in Interest expense and similar charges on an effective interest basis.
|
Deposits from customers |
|
|
13 |
|
In EUR millions |
2008 |
2007 |
||
|
Certificates of deposits |
3,845 |
4,122 |
||
|
Due to customers |
1,866 |
399 |
||
|
5,711 |
4,521 |
|
In EUR millions |
2008 |
2007 |
||
|
Payable on demand |
1,120 |
3 |
||
|
Not payable on demand |
4,591 |
4,518 |
||
|
5,711 |
4,521 |
|
In EUR millions |
2008 |
2007 |
||
|
The legal maturity analysis of deposits from customers not payable on demand is analysed as follows: |
||||
|
In three months or less |
3,071 |
2,940 |
||
|
In more than three months but not longer than one year |
213 |
561 |
||
|
In more than one year but not longer than five years |
718 |
239 |
||
|
Longer than five years |
589 |
778 |
||
|
4,591 |
4,518 |
Interest is recognised in Interest expense and similar charges on an effective interest basis.
The balance sheet item includes EUR 3,771 million (2007: EUR 3,461 million) in respect of deposits from customers to group companies.
The balance sheet item includes all non-subordinated liabilities other than debt securities and amounts owed to credit institutions.
|
Debt securities |
|
|
14 |
|
In EUR millions |
2008 |
2007 |
||
|
Bonds and notes issued - Amortised Costs |
6,461 |
9,614 |
||
|
Bonds and notes issued - Fair Value through Profit or Loss |
2,499 |
3,729 |
||
|
Fair value hedge adjustment |
48 |
(24) |
||
|
9,008 |
13,319 |
|
In EUR millions |
2008 |
2007 |
||
|
The legal maturity analysis of debt securities is analysed as follows: |
||||
|
In three months or less |
918 |
1,712 |
||
|
In more than three months but not longer than one year |
1,503 |
2,910 |
||
|
In more than one year but not longer than five years |
4,708 |
6,796 |
||
|
Longer than five years |
1,879 |
1,901 |
||
|
9,008 |
13,319 |
For an amount of EUR 1,390 million of the issued notes, the State of The Netherlands has unconditionally and irrevocably guaranteed the due payment of all amounts of principal and interest due by NIBC under these notes according and subject to (I) the Rules governing the 2008 Credit Guarantee Scheme of the State of The Netherlands and (II) the Guarantee Certificate issued under those Rules in respect of these notes. Those Rules and that Guarantee Certificate are available at www.dutchstate.nl.
The balance sheet item includes debentures and other negotiable fixed-income debt investments, other than subordinated items.
|
Other liabilities |
|
|
15 |
|
In EUR millions |
2008 |
2007 |
||
|
Interest |
30 |
32 |
||
|
Accruals |
46 |
32 |
||
|
Payables |
15 |
29 |
||
|
Finance lease liabilities |
32 |
- |
||
|
123 |
93 |
Finance lease liabilities
The lease liabilities are effectively secured as the rights to the leased asset revert to the lessor in event of default.
|
In EUR millions |
2008 |
2007 |
||
|
The legal maturity analysis of the gross finance lease liabilities - minimum lease payments - is analysed as follows: |
||||
|
Not longer than one year |
5 |
- |
||
|
In more than one year but not longer than five years |
18 |
- |
||
|
Longer than five years |
22 |
- |
||
|
45 |
- |
|
In EUR millions |
2008 |
2007 |
||
|
The present value of the finance lease liabilities |
||||
|
Gross financial lease liability |
45 |
- |
||
|
Future interest charge of finance leases |
(13) |
- |
||
|
32 |
- |
|
In EUR millions |
2008 |
2007 |
||
|
The legal maturity analysis of the present value of finance lease liabilities is analysed as follows: |
||||
|
Not longer than one year |
4 |
- |
||
|
In more than one year but not longer than five years |
14 |
- |
||
|
Longer than five years |
14 |
- |
||
|
32 |
- |
At the end of 2008, NIBC has leased land and buildings. The annual lease payments are EUR 4.5 million.
For the financial year 2008, EUR 0.2 million in lease installments has been paid.
The remaining contractual term of the finance lease contract is 10 years.
|
Provisions |
|
|
16 |
|
In EUR millions |
2008 |
2007 |
||
|
Deferred tax |
51 |
4 |
||
|
Employee benefit obligations |
8 |
10 |
||
|
59 |
14 |
For a specification of the employee benefit obligations, please refer to note 43 of the Consolidated Financial Statements.
|
Deferred tax |
||||
|
In EUR millions |
2008 |
2007 |
||
|
The amounts of deferred income tax assets, without taking into consideration the offsetting of balances within the same jurisdiction, is as follows: |
||||
|
Loans to customers |
7 |
18 |
||
|
Debt securities |
5 |
2 |
||
|
12 |
20 |
|||
|
The amounts of deferred income tax liabilities, without taking into consideration the offsetting of balances within the same jurisdiction, is as follows: |
||||
|
Equity investments |
1 |
4 |
||
|
Cash flow hedges |
26 |
12 |
||
|
Property |
8 |
8 |
||
|
Temporary differences as a result of internal securitisations |
28 |
- |
||
|
63 |
24 |
|||
|
(51) |
(4) |
|||
|
In EUR millions |
2008 |
2007 |
||
|
The gross movement on the deferred income tax account may be summarised as follows: |
||||
|
Balance at 1 January |
(4) |
(57) |
||
|
Employee benefit obligations: |
||||
|
(Charged)/credited to the Income Statement |
- |
(3) |
||
|
Loans (reported as available for sale): |
||||
|
Fair value remeasurement (charged)/credited to revaluation reserve |
(11) |
44 |
||
|
Fair value hedges through revaluation reserve |
- |
(1) |
||
|
Changes in tax rates |
- |
2 |
||
|
Debt investments (reported as available for sale): |
||||
|
Fair value remeasurement (charged)/credited to revaluation reserve |
3 |
2 |
||
|
Property reported at fair value: |
||||
|
(Charged)/credited to the Income Statement |
- |
1 |
||
|
Changes in tax rate |
- |
1 |
||
|
Equity investments reported as available for sale: |
||||
|
Fair value remeasurement (charged)/credited to revaluation reserve |
3 |
2 |
||
|
Cash flow hedges: |
||||
|
Fair value remeasurement (charged)/credited to hedging reserve |
(14) |
4 |
||
|
Changes in tax rate |
- |
1 |
||
|
Temporary tax differences: |
||||
|
Temporary differences as a result of internal securitisations |
(28) |
- |
||
|
Balance at 31 December |
(51) |
(4) |
The fair value of this balance sheet item does not materially deviate from its face value due to the short-term nature of the related assets.
The recovery period for the deferred tax assets is estimated at 3.5 years.
Tax losses of EUR 3 million (2007: EUR 5 million) have not been tax recognised because it is not probable that these losses can be utilised. These unrecognised tax losses have no expiry date.
|
Subordinated liabilities (Amortised Cost) |
|
|
17 |
|
In EUR millions |
2008 |
2007 |
||
|
Subordinated loans qualifying as Tier-1 capital |
130 |
136 |
||
|
Other subordinated loans |
92 |
98 |
||
|
222 |
234 |
|
In EUR millions |
2008 |
2007 |
||
|
The legal maturity analysis of subordinated liabilities is analysed as follows: |
||||
|
One year or less |
56 |
6 |
||
|
Longer than one year but not longer than five years |
23 |
55 |
||
|
Longer than five years but not longer than ten years |
1 |
25 |
||
|
Longer than ten years |
142 |
148 |
||
|
222 |
234 |
All of the above loans are subordinated to other liabilities of NIBC. EUR 130 million (2007: EUR 136 million) qualifying as Tier-1 capital is subordinated to other subordinated loans that rank pari passu. These securities are perpetual securities and may be redeemed by NIBC at its option after 10 years with the prior approval of the Dutch Central Bank. Interest expense of EUR 14 million was recognised on these subordinated liabilities during the year 2008 (2007: EUR 16 million).
The Subordinated liabilities reflect 9 transactions (2007: 10 transactions), of which the largest three have a size of EUR 189 million (2007: EUR 197 million).
|
Subordinated liabilities (designated at Fair Value through Profit or Loss) |
|
|
18 |
|
In EUR millions |
2008 |
2007 |
||
|
Subordinated loans qualifying as Tier-1 capital |
225 |
219 |
||
|
Other subordinated loans |
242 |
278 |
||
|
467 |
497 |
|||
|
The legal maturity analysis of subordinated liabilities is analysed as follows: |
||||
|
One year or less |
51 |
10 |
||
|
Longer than one year but not longer than five years |
- |
49 |
||
|
Longer than five years but not longer than ten years |
113 |
137 |
||
|
Longer than ten years |
303 |
301 |
||
|
467 |
497 |
All of the above loans are subordinated to other liabilities of NIBC. EUR 225 million (2007: EUR 219 million) qualifying as Tier-1 capital for NIBC is subordinated to other subordinated loans that rank pari passu. These securities are perpetual securities and may be redeemed by NIBC at its option after 10 years with the prior approval of the Dutch Central Bank.
Interest expense of EUR 26 million was recognised on these subordinated liabilities during the year 2008 (2007: EUR 28 million).
The Subordinated liabilities reflect 11 transactions (2007: 11 transactions), of which the largest three have a size of EUR 277 million (2007: EUR 276 million).
|
19 |
The parent company is NIBC Holding N.V., a company incorporated in the Netherlands.
|
Share capital |
||||
|
In EUR millions |
2008 |
2007 |
||
|
Paid-up capital |
80 |
80 |
||
|
80 |
80 |
|||
|
|
||||
|
|
||||
|
|
||||
|
2008 |
2007 |
|||
|
The number of authorised shares is specified as follows: |
||||
|
Number of authorised shares 1 |
218,937,500 |
218,937,500 |
||
|
Number of shares issued and fully paid 2 |
62,586,794 |
62,586,794 |
||
|
Par value per A-share |
1.28 |
1.28 |
||
|
Par value per preferent share |
1.00 |
1.00 |
||
|
||||
|
Other reserves |
||||
|
In EUR millions |
2008 |
2007 |
||
|
Share premium |
238 |
238 |
||
|
Hedging reserve - cash flow hedges |
75 |
35 |
||
|
Revaluation reserve - loans and receivables |
(64) |
(49) |
||
|
Revaluation reserve - equity investments |
15 |
51 |
||
|
Revaluation reserve - debt securities |
(18) |
(6) |
||
|
Revaluation reserve - property, plant and equipment |
28 |
27 |
||
|
274 |
296 |
|||
|
in EUR millions |
Share |
Hedging |
Revaluation reserve |
Total |
||||
|
Balance at 1 January 2007 |
238 |
46 |
186 |
470 |
||||
|
Net result on cash flow hedging instruments |
- |
(11) |
- |
(11) |
||||
|
Revaluation loans and receivables (net of tax) |
- |
- |
(117) |
(117) |
||||
|
Revaluation equity investments (net of tax) |
- |
- |
(41) |
(41) |
||||
|
Revaluation debt securities (net of tax) |
- |
- |
(6) |
(6) |
||||
|
Revaluation property, plant and equipment |
- |
- |
1 |
1 |
||||
|
Total gains and losses recognised directly in equity |
- |
(11) |
(163) |
(174) |
||||
|
Balance at 31 December 2007 |
238 |
35 |
23 |
296 |
||||
|
Balance at 1 January 2008 |
238 |
35 |
23 |
296 |
||||
|
Net result on cash flow hedging instruments |
- |
40 |
- |
40 |
||||
|
Revaluation loans and receivables (net of tax) |
- |
- |
(14) |
(14) |
||||
|
Revaluation equity investments (net of tax) |
- |
- |
(36) |
(36) |
||||
|
Revaluation debt securities (net of tax) |
- |
- |
(12) |
(12) |
||||
|
Revaluation property, plant and equipment |
- |
- |
- |
- |
||||
|
Total gains and losses recognised directly in equity |
- |
40 |
(62) |
(22) |
||||
|
Balance at 31 December 2008 |
238 |
75 |
(39) |
274 |
If NIBC had not reclassified financial assets during the current period, fair value losses recognised for year 2008 in profit or loss, and losses recognised in the revaluation reserve in Shareholders’ equity would have amounted to EUR 117 million after tax and EUR 220 million after tax respectively. Impairment charges would have amounted to nil for these assets that were classified out of Available for Sale into Loans and Receivables. In addition, NIBC would have recognised interest income out of Available for Sale assets for the amount of EUR 8 million. For more information see note 46 of the Consolidated Financial Statements.
Information on NIBC’s solvency ratios is include in the Risk Management section of this Annual Report.
At 31 December 2008, Retained earnings and Net profit attributable to parent shareholders include unrealised fair value changes on Residential mortgages (own book and securitised), on certain non-listed trading assets, on derivatives related to Residential mortgages (own book and securitised) and to these non-listed trading assets, on associates designated as Fair Value through Profit or Loss and on liabilities designated as Fair Value through Profit or Loss. With respect to unrealised fair value gains arising on these instruments, a legal reserve has been established of EUR 101 million (2007: EUR 157 million), that is included in Other reserves. At the balance sheet date, for associates accounted for based on the net equity method, a further legal reserve has been established of EUR 1 million (2007: EUR 1 million), which is included in Other reserves. At the balance sheet date, the legal reserve for currency translation differences are nil for both 2008 and 2007.
Including the Revaluation and Hedging reserves displayed in note 46 of the Consolidated
Financial Statements, total legal reserves at 31 December 2008 amount to EUR 144 million (2007: EUR 234 million).
|
Repurchase and resale agreements |
|
|
20 |
During 2008, NIBC transacted several repo transactions with third parties, in which notes amounting to a notional of EUR 1,964 million were transferred from NIBC to third parties in exchange for EUR 1,667 million in cash for periods ranging from one month up to three years.
During 2008, NIBC transacted several reverse repo transactions with third parties, in which notes amounting to a notional of EUR 53 million were transferred to NIBC from third parties in exchange for EUR 40 million in deposit for periods ranging from four months up to one year.
|
Commitments and contingent assets and liabilities |
|
|
21 |
At any time, NIBC has outstanding commitments to extend credit. Outstanding offers for loan commitments have a commitment period that does not extend beyond the normal underwriting and settlement period of one to three months. Commitments extended to customers related to mortgages at fixed interest rates or fixed spreads are hedged with interest rate swaps recorded at fair value. These commitments are designated upon initial recognition as Fair Value through Profit or Loss.
NIBC provides financial guarantees and letters of credit to guarantee the performance of customers to third parties. These agreements have fixed limits and generally extend for a period up to five years. Expirations are not concentrated in any period.
The contractual amounts of commitments (excluding mortgages commitments, which are measured at Fair Value through Profit or Loss) and contingent liabilities are set out in the following table by category. In the table, it is assumed that amounts are fully advanced. The amounts for guarantees and letters of credit represent the maximum accounting loss that would be recognised at the balance sheet date if counterparties failed completely to perform as contracted.
|
In EUR millions |
2008 |
2007 |
||
|
Contract amount: |
||||
|
Undrawn facilities |
775 |
1,964 |
||
|
Guarantees and letters of credit |
1,284 |
1,666 |
||
|
2,059 |
3,630 |
The item includes EUR 1,000 million (2007: EUR 1,000 million) in respect of guarantees to group companies.
These commitments and contingent liabilities have off-balance sheet credit risk because only commitment and origination fees and accruals for probable losses are recognised in the Balance Sheet until the commitments are fulfilled or expire. Many of the contingent liabilities and commitments will expire without being advanced in whole or in part. Therefore, the amounts do not represent expected future cash flows.
Details of concentrations of credit risk including concentrations of credit risk arising from commitments and contingent liabilities as well as NIBC’s policies for collateral for loans are set out in the Risk Management paragraph.
Guarantees within the meaning of Section 403, Book 2, of the Netherlands Civil Code have been given on behalf of De Nationale Maatschappij voor Industriële Financieringen B.V., Parnib Holding N.V. and B.V. NIBC Mortgage Backed Assets. A complete list of the companies on behalf of which NIBC has given guarantees within the meaning of Section 403, Book 2, of the Netherlands Civil Code has been filed with the Chamber of Commerce in The Hague. Declaration of joint and several liability has also been made to the respective monetary authorities of DNI Inter Asset Bank N.V. and NIBC Bank Ltd.
NIBC Bank N.V. is, together with other group companies and participating interests, a member of one fiscal entity NIBC Holding N.V.. Besides NIBC Bank N.V. and NIBC Holding N.V., the principal other members are B.V. NIBC Mortgage Backed Assets, Parnib Holding N.V., Vredezicht ’s-Gravenhage 110 B.V. and NIBC Principal Investments Mezzanine B.V..
|
Assets pledged as security |
|
|
22 |
|
In EUR millions |
2008 |
2007 |
||
|
Assets have been pledged as security in respect of the following liabilities and contingent liabilities: |
||||
|
Liabilities |
||||
|
Due to other banks |
4,114 |
2,058 |
||
|
Debt securities in issue related to securitised loans and mortgages |
5,835 |
7,214 |
||
|
Derivative financial liabilities |
1,000 |
494 |
||
|
10,949 |
9,766 |
|
In EUR millions |
2008 |
2007 |
||
|
Details of the carrying amounts of assets pledged as collateral are as follows: |
||||
|
Assets pledged |
||||
|
Assets utilised as collateral |
4,559 |
2,058 |
||
|
Cash |
1,000 |
494 |
||
|
Securitised loans and mortgages |
5,880 |
6,994 |
||
|
11,439 |
9,546 |
As part of NIBC’s funding and credit risk mitigation activities, the cash flows of selected financial assets are transferred or pledged to third parties. Furthermore, NIBC pledges assets as collateral for derivative transactions. Substantially all financial assets included in these transactions are residential mortgages, other loan portfolios, debt investments and cash collateral. The extent of NIBC’s continuing involvement in these financial assets varies by transaction.
With respect to assets utilised as collateral, the total portfolio eligible for use to collateralise funding was EUR 5.9 billion (2007: EUR 4.9 billion).
As of 31 December 2008, the excess cash liquidity of NIBC was EUR 1.1 billion (2007: EUR 1.8 billion), consisting of EUR 1.0 billion (2007: EUR 0.9 billion) cash placed with the Dutch Central Bank and EUR 0.1 billion (2007: EUR 0.9 billion) placed overnight with other banks.
|
Assets under management |
|
|
23 |
NIBC provides collateral management services, whereby it holds and manages assets or invests funds received in various financial instruments on behalf of the customer. NIBC receives fee income for providing these services. Assets under management are not recognised in the Consolidated Balance Sheet. NIBC is not exposed to any credit risk relating to such placements, as it does not guarantee these investments.
At 31 December 2008, the total assets held by NIBC on behalf of customers were EUR 2,520 million (2007: EUR 3,346 million).
|
24 |
For a specification of the related party transactions, please refer to note 52 of the Consolidated Financial Statements.
In addition, as at 15 December 2008, a mortgage loan to an amount of EUR 53 million was given by NIBC to Vredezicht C.V. relating to the financing of the take-over of the premises in use by NIBC from Exploitatiemaatschappij Burgemeester Patijnlaan B.V. and NIBC Offices N.V. (both subsidiaries of NIBC).
|
Principal subsidiaries, joint ventures and associates |
|
|
25 |
For a specification of the principal subsidiaries, joint ventures and associates, please refer to note 54 of the Consolidated Financial Statements.
|
Financial Risk Management |
|
|
26 |
Please refer to note 56 to 59 of the Consolidated Financial Statements, for NIBC’s Risk management policies.
|
Number of employees |
|
|
27 |
On a Full Time Equivalent basis, the average number of employees was 650 (2007: 684).
|
Remuneration |
|
|
28 |
For the remuneration of the Statutory Board and Supervisory Board we refer to note 55 of the Consolidated Financial Statements.
At 31 December 2008 and 31 December 2007 there are no receivables outstanding with members of the Statutory Board.
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Profit Appropriation |
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29 |
The profit appropriation is included in the Other Information.
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The Hague, 8 April 2009 |
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Managing Board
Jeroen Drost, Chairman, Chief Executive Officer Jan van Nieuwenhuizen, Vice-Chairman Kees van Dijkhuizen, Chief Financial Officer Jan Sijbrand, Chief Risk Officer
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Supervisory Board
Mr. J. H. M. Lindenbergh, Chairman Mr. C.H. van Dalen Mr. W.M. van den Goorbergh Mr. N.W. Hoek Mr. A. de Jong Mr. D. Rümker Mr. R.S. Sinha Mr. A.H.A. Veenhof |
