BinckBank closes the year with a good result

BinckBank closed 2015 with a good result. BinckBank succeeded in achieving higher transaction volumes as a leading broker in three of its four countries in competitive markets. Positive sentiment dominated the financial markets until the summer, with our customers producing substantial trading activity. Sentiment then turned in August due to uncertainty regarding macroeconomic developments. This increased uncertainty led to lower trading activity by our customers in the last quarter of 2015. The total number of executed transactions amounted to 9.3 million. Net fee and commission income rose to € 131.5 million during 2015. The result from operating activities for the year was 63% higher than in 2014. The adjusted net result came in at € 55.5 million.

In addition, the new growth strategy unveiled on 18 November 2015 was well received by investors. The strategy presented featured a number of growth formulas to enable further international expansion of trading, investment and savings services to retail customers. Each formula is designed according to the underlying customer needs in a different segment of: "Do it myself", "Help me do it"or "Do it for me".

Highlights 2015

· Strong position in online brokerage. BinckBank continues to lead in competitive markets:

· Transaction volume up 8% at 9.3 million (FY14: 8.6 million)

· Assets under administration up 11% to € 20.6 billion (FY14: € 18.5 billion)

· Launch of the Binck turbo in Belgium

· Launch of the mobile app for iOS and Android in Belgium, after the Netherlands and Italy. 15% of transactions executed using the mobile app

· Strengthening the backbone. Continuous investment in the stability of the trading platform

· High service levels by customer service

· Stabilisation of Alex Asset Management continues:

· Return on the sample portfolio for the cautious profile in 2015: +11.7% (2014: -11.2%)

· Adjusted net result in 15Q4 boosted by performance fee for Alex Asset Management of € 3.6 million for 2015

· Net outflow in 15Q4 limited to € 44 million (14Q4: € 297 million); Despite the desired longer investment horizon, customer behaviour in falling markets appears to show them securing the capital gains in their portfolio and withdrawing funds. No acquisitions were made for asset management in the last quarter

· Expansion of the investment universe with Swiss and Scandinavian shares (SwissNordics)

· Announcement of provision of up to € 500 million in funding for Dutch residential mortgages in a collective structure within the frameworks of the investment policy

· Cost/income ratio FY15 excl. IFRS depreciation and amortisation at 64% within the medium term target of 65% (FY14: 72%)

· Development of the new 'Rethink Binck' strategy 

Annual result in 2015

· Total income from operating activities up 3% to € 170.2 million (FY14 € 165.7 million)

· Adjusted net profit up 32% at € 55.5 million (FY14: € 42.0 million excluding non-recurring profit from the sale of BeFrank of € 15.5 million)

· Adjusted net earnings per share of € 0.79 (FY14: € 0.60 excluding non-recurring profit from the sale of BeFrank of € 0.22)

· Assets under administration € 20.6 billion (FY14: € 18.5 billion)

· Assets under management at Alex Asset Management € 1.7 billion (FY14: € 2.0 billion)

 

· Proposed final dividend of € 0.25 per share (FY14: € 0.31)

 Result for the fourth quarter of 2015

· Adjusted net result in 15Q4 positively affected by performance fees for Alex Asset Management (€ 3.6 million for 2015)

· Total income from operating activities 15Q4: € 39.9 million (14Q4: € 41.9 million)

· Transaction volume 15Q4 2.0 million (14Q4: 2.3 million)

· Adjusted net result 15Q4 € 11.6 million (14Q4: € 12.7 million)

· Adjusted net earnings per share 15Q4 € 0.16 (14Q4: € 0.18)

Improvement of customer experience

· Podium position for BinckBank Netherlands in the Gouden Oor award for most customer-oriented business

· Award for BinckBank France with the Label d'Excellence by Les Dossiers de l'Épargne

· Award for BinckBank Belgium as best derivatives provider by Euronext Brussels

· Customer panel in the Netherlands increased to 450 members with the aim of better understanding customer needs through customer intimacy and to design our services and customer experience accordingly

Operational excellence

· Appointment of Chief Operations Officer (COO) to complement the executive board

· Migration of BinckBank France on schedule (completion in 16Q1). The retail operations in the Netherlands, Belgium, Italy and France will then have been brought to a single platform

· In 2015 BinckBank started on a careful phase-out of its BPO activities. This will be continued in the period 2016 - 2018

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