BinckBank on track with its new strategy Second quarter result in line with expectations

  • The migraton of BinckBank France to the European Base platform was completed according to plan
  • On 15 July 2016 BinckBank acquired a portfolio of Dutch residential mortgages worth € 340 million of Obvion. The acquisition fits the goal to realise a more diversified flow of revenues.
  • The launch of the savings brokerage service in the Savings segment is progressing well and is scheduled to be launched in the fourth quarter of 2016.
  • The development of the new international Binck asset management proposition we have announced is on schedule and is planned for roll-out in the fourth quarter of 2016.
BinckBank ended the first six months of 2016 with adjusted net profit of € 16.2 million. Market sentiment was less favourable than in the same period in the previous year, which led to lower trading volumes in Europe. The only period of high customer activity was in the weeks around the British referendum, making June the best month in 2016 so far.

"With our combination of a customer-friendly and stable trading platform, excellent customer service and a strong financial position, BinckBank has been successful in both appealing to new customers and retaining existing customers. BinckBank has confirmed its leading role as an international bank for investors, once again winning various awards for its services, both in the Netherlands and in Italy. These awards are in recognition of how BinckBank strives on a daily basis to provide the best possible service to its customers. This has enabled Binck to further increase its customer base in a highly competitive environment to 612,000 account holders with funds under administration of € 20.7 billion and assets under management of € 1.5 billion," says Vincent Germyns, chairman of the executive board.
With a capital ratio of 36.3%, BinckBank is one of the best capitalised banks in Europe. Our strong balance sheet and capital position reflect our ambitions for growth aligned with our new strategy. A new share buy-back programme
amounting to € 25 million was started on 19 February 2016. As at 30 June 2016, BinckBank had repurchased shares in an amount of € 18.2 million, BinckBank recently announced it would invest a quarter of its investment portfolio in Dutch residential mortgages. This is an expression of our strategic objective of greater diversification in our income stream
and thereby becoming less dependent on transaction-related income. On 15 July 2016 BinckBank acquired a portfolio of Dutch residential mortgages worth € 340 million of Obvion. This acquisition means that BinckBank is on track to achieve its target of funding Dutch residential mortgages amounting to € 500 million in 2016.
Our total income in the first six months of 2016 of € 72.2 million is in line with the market conditions, while adjusted operating expenses amounted to € 56.1 million, 1% lower than in the same period in 2015. This brings the adjusted net result for the first six months to € 16.2 million (15H1: € 29.9 million). Under its dividend policy, BinckBank applies a pay-out
ratio of 50%, with the interim dividend capped at the profit in the current financial year. The interim dividend is therefore set at € 0.04 per share.
Regarding the new growth strategy: 'Redesign Binck' is making good progress, according to Vincent Germyns: "Last quarter we made significant progress on the realisation of our new growth strategy, 'Redesign' Binck. 2016 and 2017 are important transitional years for BinckBank. Within our European footprint, we want to serve a wider and growing group
of retail customers. We are aiming at the customer groups looking for the best alternative for a reliable, transparent, simple and low-cost way of accumulating capital for the future, either independently or with our help. We will also expand our offering of trading, investing and savings products. Our savings broker will be launched this coming Autumn, and the international
introduction of our new proposition 'Let Binck invest' is also on the agenda. We want to help customers choose the products and services that are best for them. We will do this by using smart technology, big data analysis and optimising our customer experience. We are convinced that BinckBank can play an essential role here and we look forward to the future with confidence."
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Source: BinckBank N.V. via GlobeNewswire