Credit Europe increases net income by 75 per cent

In the first half of 2010 Credit Europe Bank increased its net income by 75% to €49 million compared to H1 2009. This is the consequence of a decrease of impairments charges and an increase of net fee- and commission income, coupled with strictly controlled and managed operational expenses. The Tier 1 ratio increased from 9.21% at the end of 2009 to 10.44% at the end of H1 2010 due to the increase in net profit as well as due to an increase of €103 million perpetual Tier 1 capital while at the same time repaying subordinated loans for the same amount.

The bank is proud to report that it voluntarily applied the recent EU wide stress test exercise on its trading and loan book. The results suggest strong resilience. The estimated impact on the Tier 1 capital of a ‘zero-growth’ stress test is a drop of 0.6%-point on the 2011 estimated Tier 1 ratio, bringing the bank to a level of 11.2% at the end of 2011. This is a limited impact in comparison to the estimated EU wide impact of 2.0%-point, due to the fact that Credit Europe Bank has limited exposure to the countries where the impact of the stress test assumes to be most severe.

The total trade finance volume increased more than 20% on average compared to the first half of 2009, including significant contributions of the subsidiaries in Switzerland and in the United Arab Emirates. This increase was achieved despite stable levels of commodity prices, and was the result of a strong focus on customer acquisition. In the same period, the net fee- and commission income on Corporate banking activities increased by 21% to €18.9 million.

The total savings and deposits portfolio in Germany, the Netherlands, Belgium and Malta amounted to €5.1 billion at the end of H1 2010 compared to €5.6 billion at the end of 2009, in line with the bank’s policy to diversify its funding structure and to reduce its excess liquidity level. In May, the renowned business magazine €uro and the German Institute for Social Sciences (S.W.I) announced the results of a test amongst more than 50 German banks. Credit Europe Bank’s Top Time Deposit was ranked in the top 5 of time deposits due to, amongst others, its good conditions and service.