Featured statistic: EUR 7.2 billion
Date 20 September 2007
According to preliminary statistics, the Dutch banking system realised EUR 7.2 billion in net profit the first half of 2007; a 3.5% decrease on the same period in the previous year. Despite the deteriorated market conditions, the second quarter of 2007 contributed slightly more to this profit than did the first quarter.
Income from non-interest activities contributes increasingly to the development of total earnings, and now already accounts for more than 50% of total earnings. Compared to the first half of 2006, total income rose slightly (1.4%) as a result of higher revenues from non-interest activities (4.8%). Net interest earnings, i.e. the difference between interest paid and interest received, fell by 2% to EUR 15.2 billion (also see Chart below). The increase in gross interest earnings (+19.2%) lagged the growth of interest charges (+24.9%), thus confirming the pressure on net interest earnings owing to the narrowing interest margins.
Total expenses went up by 7.5% to EUR 23.3 billion. The main expenses, i.e. operating expenditure, rose to EUR 22 billion (+ 6.2%). Transfers to the provisions (to absorb write-downs on outstanding debts) amounted to EUR 1.3 billion in the first half of 2007, i.e. 33% higher than the provisions in the first half of 2006.