Achmea Bank

• Achmea Bank N.V. reports a profit before tax of EUR 26 million for the first half-year 2020
• The Bank retains its solid liquidity position supported by the third issuance of a Conditional Pass Through Covered Bond of EUR 500 million in June 2020
• Impact COVID-19 on the financial position of Achmea Bank limited up to now
• The capital position remains strong; the Common Equity Tier 1 Ratio increased to 21.0 % (December 2019: 19.2%)

The operating profit, excluding exceptional items, increased from EUR 9 million in the first half-year of 2019 to EUR 26 million in the first half-year of 2020. The higher operating profit is due to increased interest margin (EUR 17 million), a higher fair value result (EUR 3 million) and higher fee income (EUR 1 million). Increased operating expenses (EUR 3 million) and a higher addition to the loan loss provision (EUR 1 million) are more than compensated.

The interest margin in 2020 increased by EUR 17 million compared to the same period in 2019. EUR 10 million of the higher net interest margin is due to the acquired mortgage and saving portfolio(s) in 2019. The compensation for early redemptions increased  and contributed EUR 10 million to the improved result. The net impact of lower funding costs and lower gross margin on the mortgage portfolio resulted in a decrease of the interest margin by EUR 3 million.

The higher fee income is due to the increased mortgage portfolio serviced by Achmea Bank for Achmea Pensioen- en Levensverzekeringen N.V.. The fair value result (first half-year 2019 minus EUR 3 million, first half-year 2020 negligible) is an accounting result that is mainly compensated in other reporting periods, generally reflecting a pull to par as the underlying derivatives (used for hedging interest rate risk) approach maturity.

Compared to the same period in 2019, operating expenses increased by EUR 3 million, mainly due to additional costs related to the acquired  portfolios of last year. Corrected for this, the underlying operating costs are decreasing in line with the strategy of the Bank. Achmea Group has the ambition to grow in the mortgage market. In line with this ambition, Achmea is concentrating its operational mortgage activities at one location in Amsterdam. The commercial activities will be concentrated in Apeldoorn. For Achmea Bank this means transferring its mortgage operations activities from Tilburg to Amsterdam and its commercial activities to Apeldoorn at 1 October 2020. The expected reorganisation costs of EUR 2 million are provisioned for and were already included in the operating expenses of 2019.

The net addition to the loan loss provision increased from EUR 2 million to EUR 3 million in the first six months of 2020, of which EUR 1 million relates to the Acier portfolio. The addition in 2020 is mainly related to a worsening of the macro-economic outlook as a result of the COVID-19 crisis and the potential impact of this on our mortgage portfolio and the impact of the clients using the Covid-19 payments holiday.

Since March 2020, Achmea Bank offers the possibility of a payment holiday to mortgage customers with payment difficulties directly related to the COVID-19 crisis. With this payment holiday customers temporarily do not have to pay interest and principal on their mortgage loan. By deferring the mortgage payments, it is more likely that customers will not get liquidity problems and can continue living in their homes. This is one of the solutions that Achmea Bank offers to its mortgage customers. The number of clients using the COVID-19 payment holiday is relatively low (0.5%), the impact on the loan loss provision amounts EUR 2 million.

The production of new mortgages remained stable at EUR 747 million (2019: EUR 788 million), of which EUR 570 million for Achmea Pensioen- en Levensverzekeringen N.V. (2019 EUR 461 million). Due to the decreased mortgage productions for its own balance sheet and the increased level of early redemptions in the first half of 2020, the regular mortgage portfolio (including the portfolios acquired in 2019) of Achmea Bank decreased from EUR 11.4 billion by the end of 2019 to EUR 10.8 billion by the end of June 2020.

The savings portfolio remained stable at EUR 7.1 billion (2019 EUR 7.2  billion). In 2020 Achmea Bank redeemed EUR 0.9 billion RMBS notes and issued a 5Y conditional pass-through covered bond of EUR 0.5 billion. The Bank has a diversified funding mix, comprising retail funding as well as unsecured and secured wholesale funding. The Bank retained its sound liquidity position with liquidity ratios well above internal and external limits. In addition the Bank maintains different maturity profiles in its funding instruments to prevent potential future refinancing concentration risk.

The Total Capital ratio and the Common Equity Tier 1 (CET1) increased to 21.0% (2019: 19.2). The increase is mainly due to the addition of the 2019 result and the decreased mortgage portfolio. In April 2020, Achmea Bank N.V. has decided to suspend dividend distributions to its shareholder until there is more clarity regarding the impact of the COVID-19 crisis. Thereby following the call  from the European Central Bank (ECB) and the Dutch Central Bank (DNB). In the second half of 2020, Achmea Bank will determine whether a dividend can be paid out, based on recent developments of the COVID-19 crisis, recent statements of regulators and its financial position. 

S&P confirmed the Issuer Credit Rating. The Outlook has been changed per 15 June 2020 from A-/ negative to A-/stable and Fitch confirmed the issuer Default Rating of A/Stable per 29 April 2020.

Download the full press release here.

Tilburg/Amsterdam, 4 augustus 2020 - Achmea wil groeien op hypotheekgebied. Syntrus Achmea Real Estate & Finance heeft daarom het voornemen om een separate account in te richten voor het verstrekken van hypotheken via het merk Centraal Beheer. Hiermee kunnen institutionele beleggers, zowel nationaal als internationaal, rechtstreeks investeren in een eigen portefeuille van Nederlandse woninghypotheken met het door hen gewenste risicoprofiel. Achmea biedt daarmee meer keuze aan institutionele beleggers.

Achmea Bank heeft het voornemen om als investeerder toe te treden tot dit separate account en daarmee de toekomstige hypotheekproductie via Syntrus Achmea te laten verlopen.

Met deze uitbreiding van de dienstverlening aan institutionele beleggers kan Achmea haar slagkracht op de woning- en hypotheekmarkt vergroten en een groei in marktaandeel realiseren. Hiermee kan zij institutionele beleggers nog beter van dienst zijn met passende en duurzame hypotheekoplossingen. 

Achmea zet hiermee een volgende stap in de eerder aangekondigde bundeling van krachten op hypotheekgebied.

De oprichting van het separate account vindt plaats onder voorbehoud van goedkeuring van de relevante toezichthouders en overige stakeholders waaronder de betrokken Raden van Commissarissen. 

Persbericht Achmea Bank Separate Account 4 aug 2020

Achmea Bank N.V. heeft €500 miljoen aan covered bonds geplaatst onder het €5 miljard Conditional Pass-Through Covered Bond programma. Dit is de derde publieke uitgifte onder dit programma, waarmee wij nu in totaal een bedrag van € 1,5 miljard hebben uitstaan.

De transactie is zeer goed ontvangen in de kapitaalmarkt met brede belangstelling van Europese institutionele beleggers. Meer dan 100 beleggers hebben ingeschreven met een totaal volume van ruim €2,8 miljard.

Achmea Bank zal de opbrengst aanwenden om een deel van de bestaande Nederlandse hypotheekportefeuille te herfinancieren.

De obligaties hebben een looptijd van 5 jaar met 16 juni 2025 als einddatum en zijn uitgegeven op 24 basispunten boven mid-swap. De couponrente bedraagt 0,01%.

De obligatielening heeft een Aaa-rating van Moody’s en een AAA-rating van Fitch en zal worden genoteerd aan Euronext Amsterdam. De covered bond is geplaatst door een syndicaat van banken bestaande uit ABN AMRO, DZ Bank, ING, Rabobank, Société Générale en UniCredit.