Achmea Bank reports an operating profit before taxes of EUR 33 million
- Achmea Bank N.V. reports an operating profit before taxes of EUR 33 million for the first half-year 2023 (EUR 11 million for the first half-year 2022)
- The mortgage portfolio increased with EUR 1.0 billion (+8%) to EUR 13.4 billion, reflecting the Bank’s growth and diversification strategy
- The capital position remains strong; with a Common Equity Tier 1 Ratio of 17.1% (December 2022: 18.2%)
The operating profit before taxes increased by EUR 22 million to EUR 33 million in the first half-year of 2023 compared to the first half-year 2022. This increase is mainly due to higher interest margin of EUR 45 million, lower fair value result of EUR 15 million and higher operating expenses of EUR 7 million.
The positive development of interest margin strengthened in first half-year 2023, due to both an increase of our mortgage portfolio and higher margins on new originated and repriced mortgages. The rise in interest rates resulted in a shift of the mortgage market to shorter fixed-interest periods (<=10y) of which Achmea Bank clearly benefited. In addition to growth of our mortgage portfolio, interest margin improved due to lower funding costs including derivatives.
The mortgage production of Centraal Beheer for Achmea Bank increased due to the shift of the mortgage market to shorter fixed-interest periods. Together with a strong price position the origination of new mortgages increased with EUR 0.5 billion to EUR 1.1 billion in the first half of 2023 (EUR 0.6 billion H1 2022). Combined with prepayments of EUR 0.6 billion and the acquired portfolio from a.s.r. (EUR 0.5 billion), the Achmea Bank mortgage portfolio increased by EUR 1.0 billion to EUR 13.4 billion in line with the Bank's growth and diversification strategy. To further strengthen this strategy and remain robust in uncertain market circumstances, the Bank also joined the residential mortgages platform of asset manager DMFCO as per March 2023.
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