Featured statistic: EUR 14 billion

News
Date 7 March 2007

According to provisional figures, Dutch banks recorded net earnings of EUR 14 billion in 2006, a small increase compared to 2005 when earnings totalled EUR 13.2 billion. The second half of 2006 contributed less than the first half.

Chart Dutch banks' net earnings in EUR billion

 

 

Income

In 2006, the sum of net interest and commission income was EUR 3.5 billion higher than in 2005; almost equally split between interest and commission. The increase in net commission income may be owing in part to improved financial conditions this past year. The strong growth in gross interest income (+20 per cent) and gross interest expenses (+26 per cent) was remarkable. This seems to have been caused mainly by a rise in the overall interest level, and to a lesser extent by an expansion of the banking system’s activities. The positive net result on financial transactions such as the trade in futures, options and swaps, as well as other income, also contributed to the increased income (EUR +3.6 billion).

Expenses

The banking system’s staff costs were up by a notable EUR 1.8 billion (+9 per cent). Other operating expenses also increased strongly, by EUR 3.6 billion, while value adjustments to loans and receivables went up by EUR 1.1 billion compared to 2005. Acquisitions may have played a part in this.