Financial results
Results (in millions of euros)
Ratios
Income up 14%
2007
2006
Change
Interest
6,771
6,472
5%
Fees and commission
2,857
2,296
24%
Other income 1,871 1,281 46%
Total income
11,499
10,049
14%
Staff costs
4,445
4,117
8%
Other administrative expenses
2,846
17%
Depreciation and amortisation
418
341
23%
Operating expenses
7,709
6,887
12%
Gross result
3,790
3,162
20%
Value adjustments
742
450
65%
Operating profit before taxation
3,048
2,712
12%
Taxation
386
367
5%
Net profit
2,662
2,345
14%
Value adjustments (in basis points)
22
15
Efficiency ratio
67.0%
68.5%
Return on equity
10.1%
9.4%
RAROC
13.0%
13.8%
Balance sheet (in billions of euros)
31-Dec-07
31-Dec-06
Total assets
570.5
556.5
3%
Private sector lending
356.0
324.1
10%
Due to customers
249.5
234.9
6%
Risk-weighted.asse.ts.
266.6
247.5
8%
Economic capital
20.5
16.9
21%
Capital ratios
BIS ratio
10.9
11.0
Tier 1 ratio
10.7
10.7
Number of employees (in fte)
54,737
50,573
8%
Total income grew by 14% in 2007 to EUR 11,499 (10,049) million, with a particularly strong
contribution from commission and other income. Interest income was 5% higher, at EUR
6,771 (6,472) million. Due to the higher interest rates, clients felt less inclined to settle their
mortgage loans prematurely. Income from penalty interest declined. The margin in domestic
retail banking declined as a result of the continued competition in the mortgages market.
The margin in the leasing activities declined likewise. The growth in lending offsets the
effects of the lower penalty-interest income and the lower interest margin.
The rise in asset management commission was largely due to the fact that Sarasin was
consolidated from the end of 2006. Further, the good investment performance of the
Transtrend Diversified Trend Program and the expansion of the interest in Transtrend
contributed to the higher commission income. Total commission income was 24% higher,
at EUR 2,857 (2,296) million.
Other income was 46% higher, at EUR 1,871 (1,281) million, with a strong contribution
from the parts of Bouwfonds, which had been acquired in 2006. The acquisition of Athlon in
the second half of 2006 and the sale of activities at Sarasin likewise contributed to the
increase in other income. Income from the Eureko participation, which is included in other
income, was lower.
