Annual Report 2013

Annual Report 2013
For family businesses and liberal professions
www.bankvanbreda.be
ANNUAL REPORT
Content
Preface3
Basic figures
4
Annual report
5
Organisation chart
25
Corporate governance
29
Consolidated financial statements
32
You are welcome at our bank
41
ANNUAL REPORT 2013 2
ANNUAL REPORT
Preface
Bank J.Van Breda & C° is different
Bank J.Van Breda & C° is not a bank for everyone. On the contrary, our main asset is our in-depth specialisation.
We offer entrepreneurs and members of the liberal professions personal assistance in systematically building up,
managing and protecting their assets. In this area we stand out ever more clearly because of three crucial strengths.
We are:
1. Specialized
3. Proactive
Because we do nothing else besides
dealing with people like you, we are
thoroughly familiar with the needs and
concerns of family businesses and
the liberal professions. We keep an
eye on the financial balance between
your business, your practice or your
firm on the one hand and your private
capital accumulation on the other.
This means that we can make
the difference at crucial points in
your career.
We constantly keep our clients’
long-term interests in mind.
We take the initiative. In 2013
this approach was once again
highly successful:
2. Personal
As our client, you have a permanent
account manager. Our small scale
means that he or she can also
guarantee you a really personal
approach. Our staff are trained to
listen first and only then to give advice.
•Thanks to the steady influx of
new investments, client assets
under management have risen by
EUR 1 billion to EUR 8,680 million
(+13%). The credit portfolio has also
grown by 6% to EUR 2,967 million.
•Our client satisfaction remains
historically high: 90% of our clients
indicate that they would recommend
our bank.
•The bank has been profitable
year after year, and has an excellent
reputation. During the banking crisis
it played its role of safe haven.
In addition, it has since been
proven that we are able to combine
sustainability with profitability
through the economic cycles.
This is possible only thanks to
a unique team of enthusiastic
employees. Their motivation is
stimulated by the appreciation of
passionate and interesting clients.
In the coming years as well,
we will continue to focus our efforts
on our client-oriented approach.
Entrepreneurs and liberal
professions are the raison d’être
of Bank J.Van Breda & C°.
It is only by providing you with
added value, by innovating and
by further refining our approach
that we can continue to accomplish
our company objective.
Dirk Wouters
Chairman of the Executive Committee
Bank J.Van Breda & C°
As from 1/4/2014
ANNUAL REPORT 2013 3
ANNUAL REPORT
Basic figures
At a glance
Bank J.Van Breda & C° consolidated
Staff
2009
2010
2011
2012
2013
399
418
462
465
466
23,317
25,664
54,880 (*)
27,739
31,546
Results
Profit after tax
Balance sheet data
Total invested by clients
5,644,268
6,368,943
7,469,140
8,010,401
9,017,851
Client deposits
2,358,533
2,596,766
3,453,279
3,424,358
3,683,174
Off-balance-sheet products
3,285,735
3,772,177
4,015,861
4,586,043
5,334,676
Total private lending
2,328,371
2,631,339
3,043,941
3,306,419
3,455,495
Equity (group share)
243,667
258,620
394,969
427,267
447,907
Efficiency ratio (cost-income)
60%
57%
61%
58%
59%
Return on average equity (ROE)
10%
10%
(*)
7%
7%
Return on assets (ROA)
0,77%
0.80%
(*)
0.69%
0.72%
Impairments on loans
0.09%
0.15%
0.06%
0.08%
0.04%
Ratios
Solvency ratio (equity to assets)
8.1%
8.1%
9.9%
10.7%
10.2%
Core capital ratio (core tier 1)
11.8%
11.3%
14.7%
14.2%
13.7%
Risk weighted solvency ratio
14.6%
14.7%
17.3%
16.4%
15.6%
All data as at 31.12; financial information in thousand EUR
(*) Excluding ABK the net profit in 2011 amounted to EUR 21.407 million.
The exceptional non-recurring impact on results (badwill) from the acquisition of ABK means that the percentage returns for 2011 provide a distorted picture of underlying profitability.
ANNUAL REPORT 2013 4
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Annual Report
ANNUAL REPORT 2013 5
ANNUAL REPORT
Client assets invested
rose by 13% to EUR 9 billion.
2,793
2,285
1,755
1,401
1,872
2,967
2,477
2,005
1,505
1,164
972
Report of the Board of Directors to the Annual General Meeting
928
Bank J.Van Breda & C° consolidated: growth of
2003 2004
2005 assets
2006 2007invested
2008 2009and
2010net
2011
2012
EUR2002
1 billion
in client
profit
of EUR 31.5 million (+ 14%).
Successful commercial strategy
2013
The assets that entrepreneurs and members of the liberal
professions entrust to Bank J.Van Breda & C° rose by
EUR 1 billion (+13%) in 2013. This commercial success is
reflected in consolidated net profit of EUR 31.5 million, up
14% over 2012 in spite of difficult market conditions.
31.5
28.8
24.4
17.7
24.4
27.7
25.7
22.4
19.6
23.3
21.4*
20.6
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Net profit after tax
(Bank J.Van Breda & C° consolidated, in millions of euro)
* Net profit for 2011 excluding the profit resulting from the acquisition
of ABK for a sum of EUR 33.476 million.
8,680
7,682
7,135
•Both the target group strategy conducted by
Bank J.Van Breda & C° and the strong financial
performance of its subsidiaries ABK bank and
Van Breda Car Finance contributed to this result.
•Thanks to the steady influx of new investments,
client assets invested have risen by
EUR 1 billion to EUR 9,018 million (+13%). The credit
portfolio has also grown by 5% to EUR 3,455 million.
Banking revenues increased by 3%
Consolidated banking revenues increased by
EUR 3.8 million to EUR 117.7 million.
•Despite a growth of the credit portfolio by 5%
and of deposits by 8%, interest income fell by 3%.
The continued disruption of the deposit market, with
a number of banks offering rates for savings that are
considerably above the risk-free interest rate, affected
interest income. The flattening of the yield curve and
the bank’s strategy to prioritise security over return in its
investment portfolio explain why the growth in volume
has not yet been translated into a higher interest result.
•The growth in off-balance-sheet investments (+16%) led
to an 18% increase in commission income.
•The capital gains in the securities portfolio
and the yields of hedging instruments came to
EUR 4.6 million, as compared to EUR 4.2 million in 2012.
6,369
5,644
4,701
5,009
4,077
2,352
2,672
3,118
3,538
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
ANNUAL REPORT 2013 6
ANNUAL REPORT
Cost-income ratio 59%
Costs amounted to EUR 69 million, up 4% on 2012.
This increase was due to salary indexation and greater
investment made in IT applications, branding, and
accommodation capacity. The consolidated cost-income
ratio was 59%, putting Bank J.Van Breda & C° among the
best performing Belgian banks.
Write-downs on loans exceptionally low
Write-downs and provisions for loans amounted to
EUR 1.5 million compared to EUR 2.4 million in 2012.
They represent only 0.04% of the average loan portfolio.
The combination of a sustained prudent credit policy
and working with successful and careful clients continues
to be fruitful even in a period of economic crisis.
Stake in ABK bank rose to 99.9%
ABK bank made use of the possibility, provided for in
its articles of association, to exclude inactive partners.
As a result of ABK bank’s withdrawal from the
‘Beroepskrediet’ network, partners who leave can
now be compensated according to book value rather
than the much lower face value.
As a result of the exclusion of inactive partners,
the stake in ABK bank held by Bank J.Van Breda & C°
rose from 91.8% to 99.9%. Because the exclusion took
place on 31/12/2013, 8.2% of ABK’s results for 2013
are still to be allocated to minority partners.
Strong liquidity and solvency
Bank J.Van Breda & C° continues to be well equipped
to face the challenges of the financial and economic crisis
thanks to its sound liquidity position. The loan portfolio is
fully financed by client deposits.
Equity (group share) increased from EUR 427 million to
EUR 448 million. A healthy investment portfolio means
that - just as in previous years - the bank’s equity is not
affected by write-downs on financial instruments.
The growth in equity gives the bank an additional edge
with which to bolster its steady growth in a financially sound
manner, even in the face of unforeseen events in
the market. The solvency ratio, expressed as the ratio
of equity to assets, amounted to 10.2%, significantly
more than the 3% that the supervisory authorities plan to
implement at the earliest in 2018 under Basel III.
The consolidated cost-income ratio
was 59%, putting Bank J.Van Breda & C°
among the best performing Belgian banks.
ANNUAL REPORT 2013 7
2,793
ANNUAL REPORT
2,285
1,755
1,401
1,872
2,967
2,477
2,005
1,505
1,164
928 972
Entrepreneurs
and the liberal professions
entrust more than EUR 8.6 billion
in assets to Bank J.Van Breda & C°.
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Bank J.Van Breda & C°
Bank J.Van Breda & C° is a specialist advisory bank
which exclusively targets entrepreneurs and the liberal
31.5
professions. We assist
them in systematically building up,
28.8
27.7
25.7 can count
managing and24.4protecting
their assets. They
24.4
23.3
22.4
on us for personal and proactive
both the
20.6advice. At 21.4*
19.6
17.7
professional and the private level. Throughout their lives.
These activities will hereafter be designated by the term
‘target group banking’.
Entrepreneurs and the liberal professions
entrust
more than EUR 8.6 billion in assets
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
to Bank J.Van Breda & C°
2013
The long-term, careful approach of the bank and the high
levels of client satisfaction have resulted in a steady growth
in commercial activities. Assets invested by clients showed
a growth in 2013 of EUR 1 billion to EUR 8.7 billion (13%).
8,680
7,682
7,135
6,369
5,644
4,701
5,009
•Client deposits grew by 9% to EUR 3.4 billion.
In a highly competitive market environment, clients shift
their trust from short-term deposits to more long-term
strategies. As a result, term deposit accounts with a term
of more than one year grew by 20% to EUR 776 million.
•In total, investments in off-balance-sheet products
increased by 16% to EUR 5.3 billion thanks to the influx
of additional investments and the financial performance
of the assets under management.
›› In terms of asset management, Bank Delen managed
EUR 3,029 million for Bank J.Van Breda & C° clients
(compared to EUR 2,507 million in 2012, +21%) at
the end of 2013. With its conservative investment
strategy, Bank Delen has demonstrated strong
resistance to the financial crisis of the previous years.
Along with wealth management services, this also
resulted in a steady influx of new capital in 2013,
from both new and existing clients.
›› Insurance investments grew to a volume of
EUR 1,507 million (+1%).
4,077
2,352
2,672
3,118
3,538
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Total invested by clients (target group banking, in millions of euro);
Deposits + off-balance sheet investments.
›› Outstanding reserves in other insurance products
(especially group insurance policies) increased
by 22% to more than EUR 350 million.
›› Investment funds grew to a volume of EUR 416 million
invested capital (+40%).
ANNUAL REPORT 2013 8
ANNUAL REPORT
Steady increase of target group
banking’s loan portfolio continues in 2013.
Target group banking loan portfolio grew by 6%
Strong financial results
In 2013 the target group banking loans portfolio
grew by 6% to EUR 2,967 million. Loans to successful
entrepreneurs and the liberal professions are granted
on the basis of a long-term relationship, making it
possible to offer lending for well-considered and prudent
investment and growth projects, even in a difficult
financial and economic environment.
Record growth in commercial activities contributed to
an increase in banking revenues. This increase –
combined with strict cost control and a very low level
of credit losses – once again delivered very strong
financial results.
2,793
2,285
1,755
1,401
1,872
2,967
2,477
2,005
1,505
1,164
928
972
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Credit volume (target group banking, in millions of euro)
31.5
28.8
24.4
17.7
19.6
24.4
27.7
25.7
22.4
23.3
20.6
21.4*
ANNUAL REPORT 2013 9
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
ANNUAL REPORT
Van Breda Car Finance
As a subsidiary of Bank J.Van Breda & C°,
Van Breda Car Finance is active throughout Belgium
in the vehicle financing and vehicle leasing sectors.
Van Breda Car Finance aims to be the optimal credit
partner for the customers of large, independent car dealers.
The entire organisation is focused on providing rapid credit
solutions for private vehicles through the company’s own
website. With its core values of ‘fast, friendly & flexible’,
Car Finance supports local car dealers through the entire
sales process: from the offer stage through the order
processing and drawing up of loan contracts to verifying
the payment of the loans. This way we can facilitate
our partners’ sales process by enabling them to extend
credit services to their clients.
In spite of difficult market conditions, this strategy has
led to a 1% increase in the portfolio, to EUR 300 million.
Net write-downs on loans also remained exceptionally
low in 2013, thanks to credit approval policies and
recoveries in problem cases. Along with strict cost control,
this resulted once again in solid financial results.
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ABK bank
ABK bank is a subsidiary of Bank J.Van Breda & C° since
2011. Since this takeover, ABK has repositioned itself
as an asset manager for executives and the self-employed.
ABK assists clients in building up, managing and protecting
their assets with a view to the long-term. In this way ABK
remains loyal to the tradition of simple and transparent
products, within a culture of exercising care and providing
a personal approach.
Since the takeover, ABK has been in a process
of transition in several respects.
Strategic
From a strategic point of view, client expectations were
the focus, with regular client consultation key to this.
The strategic decision to concentrate on asset
management resulted in a change in logo and
house style, implemented in 2013.
Commercial
After launching a collaboration with Baloise Insurance
for a range of class 21 and class 23 products, a new
collaboration was initiated in 2013 with Bank Delen in
the area of wealth management and discretionary asset
management. In order to optimise our offer of asset
management services, we have provided a compact
module that helps clients determine how much capital
they will need to build up by the age of retirement and
how this can be achieved through systematic savings
and by diversifying their investment portfolio.
Organisational
Some supporting activities such as risk management,
audit and human resources have been centralised at
Bank J.Van Breda & C°. In this way, ABK’s policies have
been further professionalised, with increased knowledge
transfer between the two banks. As a result of the transfer
of ABK’s company seat in 2013 to the head office of
Bank J.Van Breda & C° this collaboration is now even
more intense and efficient. Within ABK the tasks of many
members of staff underwent a change. In order to roll out
its strategy, ABK opted for a network of its own branches
with relationship managers who can focus entirely on
asset management. Therefore the collaboration with
independent agents was brought to an end in 2013.
2013 was an important year of
transition for ABK in many respects.
ANNUAL REPORT 2013 11
ANNUAL REPORT
Operational investments
In 2013, part of ABK’s internal activities migrated to
the IT platform that is used by Bank J.Van Breda & C°.
This platform supports relationship managers in areas
such as client administration and the sale of investment
funds. In Berchem and Schoten, new modern offices
were opened up that have several meeting rooms
that can be used for advising clients.
Surplus equity and liquidity profitably invested
Commercial activities
Partly as a result of this more profitable use of its surplus
equity and liquidity, ABK bank achieved strong financial
results in 2013.
Client deposits at ABK bank were down by 23 million
from 2012 to EUR 306 million by the end of 2013.
The loan portfolio fell by 28 million to EUR 189 million.
The influx of new clients has not yet fully compensated
for the outflow of clients outside the target group
and borrowers who had no interest in or potential
for asset management.
•At the end of 2012, ABK bank provided credit risk
protection on part of Bank J.Van Breda & C°’s loan
portfolio. As a result, surplus capital from within
ABK can be used to bolster Bank J.Van Breda & C°’s
healthy history of lending growth into the future.
•In 2013, ABK used its surplus liquidities to provide
funding to Van Breda Car Finance.
Excluding inactive partners
Since ABK bank made use of the option to withdraw
from the ‘Beroepskrediet’ network, partners who withdraw
can now be compensated at book value. ABK bank took
advantage of this possibility to exclude inactive partners.
As a result, the stake in ABK bank held by
Bank J.Van Breda & C° rose from 91.8% to 99.9%.
ANNUAL REPORT 2013 12
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Low risk profile
High equity buffer
Risk management: ongoing monitoring and control
•The bank has sufficient means to continue to grow
using its own resources, even in the event of
unforeseen market conditions. Its equity stands at
10.2% of the balance sheet total, more than three times
the 3% standard that supervisory authorities aim to
introduce at the earliest in 2018.
•Equity makes up 12% of client deposits. In other words,
for every EUR 100 of client deposits there is a buffer
of EUR 12 in equity available to absorb write-downs
on loans or investments.
Corporate risks are inherent to a bank’s normal activities.
In comparison with others in the same sector,
Bank J.Van Breda & C° and its subsidiaries have always
remained simple and transparent institutions. Moreover,
they have always exercised great caution with respect to
assuming risks. They perform ongoing risk monitoring and
control. Historically, Bank J.Van Breda & C° has provided
ample proof of its capacity to manage risk.
High liquidity and stable financing
The internal risk committee supervises the risks and risk
positions of the bank and its subsidiaries on a structured
basis. To this end the risk committee gathers information
from the various departments and activities.
•Bank J.Van Breda & C° finances its investment portfolio
and loans exclusively from its equity and client deposits.
•In addition to its loan portfolio, the bank also has
considerable liquid assets on deposit with the National
Bank of Belgium (NBB) and a substantial portfolio
of high-quality bonds that can be used as a buffer
to absorb liquidity fluctuations in the treasury position.
At the end of 2013, this buffer of EUR 802 million covered
more than 22% of client deposits.
ANNUAL REPORT 2013 13
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Solvency risk
Bank J.Van Breda & C° aims to ensure that the bank
complies with statutory requirements at all times and
maintains a level of capitalisation that adequately matches
the level of activity and the risks incurred. This means that
the equity levels must be sufficient to absorb any shock
that may be caused by credit losses, so that clients’
savings deposits are safeguarded at all times.
The credit portfolio of the bank is ‘weighted’, in accordance
with the standardised approach of Basel II. The operational
risk and the market risk are also weighted. The end result
of this is the ‘weighted risk volume’.
This can be used to calculate the ratios that are reported
to the NBB and used as a benchmark in the markets.
Moreover, the bank already complies with the bank
solvency standards that the Basel III Accord intends
to introduce.
Equity and solvency
Equity in the narrow sense (core tier 1) (1)
Additional equity (tier 2)
Total equity (2)
Weighted risk volume (3)
2012
2013
413,268
417,414
64,662
58,821
477,930
476,235
2,906,534 3,055,753
Risk-weighted solvency ratio (2)/(3)
16.4%
15.6%
Core capital ratio (core tier 1 ratio) (1)/(3)
14.2%
13.7%
•The risk-weighted solvency ratio as reported to the NBB
weighs the total equity against the weighted risk volume.
This ratio stands at 15.6%, whereas the minimum
requirement at the moment is 8%.
•The core capital ratio weighs equity in the narrow sense
(core tier 1) against the weighted risk volume. This ratio is
currently 13.7%, while the minimum requirement is 4%.
•The solvency ratio expressed as equity to assets
amounts to 10%, far more than the 3% that supervisory
authorities aim to introduce at the earliest in 2018.
Bank J.Van Breda & C°
and its subsidiaries have always remained
simple and transparent institutions.
ANNUAL REPORT 2013 14
ANNUAL REPORT
Bank J.Van Breda & C° has sufficient means
to continue to grow using its own resources,
even in the event of unforeseen market conditions.
At the end of 2010, Bank J.Van Breda & C° already
comfortably satisfied all future increased solvency
standards. Following the acquisition of ABK in 2011
the solvency ratios showed significant further
improvements.
At the end of 2012, ABK provided credit risk protection
on part of Bank J.Van Breda & C°’s loan portfolio.
As a result, surplus capital from within ABK can be used
to bolster Bank J.Van Breda & C°’s sound history of
lending growth into the future. The bank has sufficient
means to continue to grow using its own resources,
even in the event of unforeseen market conditions.
Liquidity management
Commercial banking activities are the most important
source of liquidity risk. This is the risk that the bank
will have insufficient resources to meet its immediate
commitments. The bank deliberately aims for a low risk
profile in this domain as well.
The most important source of financing is always
the bank’s clientele: many thousands of local entrepreneurs
and liberal professions use Bank J.Van Breda & C° for
their investments and their day-to-day banking activities.
This applies equally to ABK’s client base of executives
and the self-employed. Risk-averse investors, who were
disconcerted by the financial crisis, are paying more
attention than previously to the risk profile of the bank to
which they entrust their savings. They feel reassured by
the sound financial position of Bank J.Van Breda & C°
and ABK. This provides the bank with a stable source
of financing, with volumes spread over a large group
of clients.
The bank’s liquidity risk is constantly monitored by means
of pro-active treasury management, within the guidelines
defined by Asset & Liability Management (ALM).
Amongst the tools used by the bank to manage its
liquidity gap reports, ratio analysis and short- and
long-term volume forecasts. The bank also works with
an internal liquidity ratio that compares the liquid assets
and the available liquidity in the investment portfolio to
short-term commitments. The NBB stress test ratios
are also monitored monthly. The bank keeps well within
NBB standards.
ANNUAL REPORT 2013 15
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Credit risk
•The loan portfolio is widely spread amongst
Bank J.Van Breda & C°’s clientele of local
entrepreneurs and the liberal professions, along with
ABK’s clientele of executives and the self-employed.
The bank applies concentration limits by sector and
maximum credit amounts per client. The loan portfolio
is sub-divided into risk categories, each of which is
separately monitored. Periodic reports are made
to the Board of Directors about loans in the highest
risk category of ‘non-performing’.
•The credit portfolio of Van Breda Car Finance is
characterised by a high degree of diversification. By constantly refining the acceptance criteria and
through proactive borrower monitoring, this portfolio
also enjoys a low risk profile.
Debts that become doubtful are transferred to
the department for Disputed Affairs. There are criteria
for compulsory transfer whenever particular events
occur amongst our clients, borrowers or guarantors.
Write-downs were booked on the loans in the highest risk
category ‘non-performing’ as well as on the debts that
have become doubtful.
Bank J.Van Breda & C° and its subsidiary ABK have
opted for the standardised approach under Basel II.
ANNUAL REPORT 2013 16
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Investment portfolio credit risk
94% of the client deposits held by Bank J. Van Breda & C°
is allocated to lending to local entrepreneurs and members
of the liberal professions. In addition, the bank holds an
investment portfolio as a liquidity buffer. The investment
portfolio risk profile has been deliberately kept low for many
years. An investment framework is submitted annually for
approval to the Board of Directors and determines what
types of investment are allowed and what limits apply.
On consolidated basis, the investment portfolio as
at 31/12/2013 held only 1% of shares, 23% corporate
bonds and commercial paper and 76% government bonds
issued by the following European governments: Germany,
the Netherlands, Belgium, Austria, Sweden and Finland.
The portfolio holds no bonds issued by France, Greece,
Italy, Portugal, Ireland or Spain.
The following two charts show the composition of the
consolidated investment portfolio by rating and maturity.
1% Private equity & shares
2% Undetermined
2% Financial subordinated
bonds and Perpetuals
7% 2018-2020
21%
Corporate bonds and
Commercial Paper
30%
Aaa
Government bonds
33%
2014
20%
2017
Rating
(Moody’s)
25%
Aa3 Government
bonds
Remaining term
to maturity
21%
Aa1 and Aa2
Government bonds
Composition of the consolidated investment portfolio
as at 31/12/2013 by rating (Moody’s)
18%
2016
20%
2015
Composition of the consolidated investment portfolio
as at 31/12/2013 by remaining term to maturity
ANNUAL REPORT 2013 17
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Forex risk
The bank, because of the nature of its clientele
(Bank J.Van Breda & C°, ABK, and Van Breda Car Finance
operate only in Belgium), does not have material foreign
currency positions.
Market risk
As all of our business is client-oriented and we do not
engage in any market activities on our own behalf,
our results are less sensitive to fluctuations on
the financial markets.
Interest rate risk
The bank adopts a cautious policy towards interest
rate risk, well within the standards set by the National
Bank of Belgium. In areas where the durations of assets
and liabilities are insufficiently matched, the bank uses
hedging instruments to redress the balance.
This is accomplished by a combination of interest rate
swaps (which convert variable interest rates into fixed
rates commitments) and options (which provide protection
against a rise of interest rate levels).
The interest rate risk is measured, inter alia, using
the Basis Point Value methodology. In 2013 as well,
the decision was taken to keep interest rate risk relatively
low. The bank carries out an extensive interest rate gap
analysis based on a scenario analysis that takes account
of changing market conditions, thereby making it possible
to analyse the impact of the stress scenarios.
Operational risk
As specialised niche players, Bank J.Van Breda & C°
and its subsidiaries benefit from their relatively small scale,
simple structure and short lines of communication.
Internal operational risks are managed, inter alia, through:
High standards of integrity
Honesty is of fundamental importance in our corporate
culture, both for the organisation and for our individual
members of staff.
Departmental charters
The core values ‘specialised’, ‘personal’ and ‘proactive’
are guaranteed at departmental level by means of
departmental charters.
ANNUAL REPORT 2013 18
ANNUAL REPORT
First line monitoring
The operational departments have a major responsibility
for monitoring their own operating methods and
the quality delivered.
IT
The major operating processes are automated and
have built-in process controls.
Disaster recovery plan
The continuity of activities in the event of a disaster
is regularly tested and improved.
Income volatility risk
Reputation risk
Bank J.Van Breda & C° has an impeccable reputation
which it wishes to safeguard. Constant attention to
integrity and discretion forms the guiding thread running
through all our activities.
We advocate caution and balance for our clients as well.
This is reflected inter alia in nuanced investment advice
(with a view to spread, long-term planning and investment
in quality securities), a thorough response to credit
applications (with the emphasis on the quality of
the company’s management, ability to repay and equity)
and high standards in terms of acting correctly from
a legal and tax point of view.
The income from relationship banking – the bank’s
main activity, in which Bank J.Van Breda & C° and ABK
each have their own target group specialisation – is
supplemented by specialised vendor activities for car
dealers, which are carried out by the Van Breda Car
Finance subsidiary.
Like other financial institutions, Bank J.Van Breda & C° is
dependent on a profit contribution from the transformation
margin between the short-term interest rate and the
long-term interest rate. Thanks to volume increases and
the use of hedging instruments, the bank has always been
able to accommodate the reduction in interest income
resulting from an unfavourable interest rate climate in
the past. Furthermore, commission income accounted
for 27% of banking revenues in 2013.
ANNUAL REPORT 2013 19
ANNUAL REPORT
Strategic risk
The activities of Bank J.Van Breda & C ° are
consistently managed and undertaken in accordance
with the corporate mission. This corporate mission has for
many years formed the basis of the bank’s strong results.
The Executive Committee tests all strategic decisions and
market opportunities to ensure that they are consistent
with the corporate mission.
The bank sees the acquisition of ABK as a unique
opportunity for expanding its successful commercial
strategy outside the target group of entrepreneurs
and the liberal professions.
Autonomy of internal audit and risk policy
With a view to the strict control of all business risks,
great value is attached to the autonomy of internal
audit, the compliance officer, the risk manager and the
ombudswoman. The autonomy of the internal auditor
is guaranteed by the operation of the audit committee.
ANNUAL REPORT 2013 20
ANNUAL REPORT
In 2006, 2010 and 2012 Bank J.Van Breda & C°
was nominated as “Best Employer”.
Targeted human
resources policy
In order to be the best relationship bank for entrepreneurs
and the liberal professions (Bank J.Van Breda & C°), the
best relationship bank for executives and the self-employed
(ABK) and the best credit partner for the customers of large
independent car dealers (Van Breda Car Finance), we pay
a great deal of attention to our human resources policy.
This starts with the recruitment of highly qualified clientoriented staff, who are committed to upholding the values
of honesty, enthusiasm and a sense of responsibility.
At the end of 2013, the bank employed a total of 466 staff,
32 of them for ABK and 33 for Van Breda Car Finance.
Bank J.Van Breda & C° manages relationships with
entrepreneurs and liberal professions from 39 locations
throughout Belgium, 8 of which are independent agencies.
At the end of 2013, there were 150 account managers
working for Bank J.Van Breda & C°. In 1999 there were
barely 60. In 2013, 57% of Bank J.Van Breda & C°’s staff
worked in the network of branches (expressed in FTEs).
ABK currently has 6 of its own offices in the province
of Antwerp.
Our client-oriented approach is delivered by a strong
sales team, who are continually honing their
technical knowledge and sales skills via our very
own ‘Sales Academy’. Staff development is one of
our top priorities.
Client retention and staff loyalty go hand in hand.
For this reason, Bank J.Van Breda & C° follows a social
policy aimed at ensuring that every employee who
wishes to contribute fully to achieving the bank’s mission,
continues to seek challenges that fit his or her talents.
A results-oriented approach to work and participation in
profit growth are supported by means of a share-option
plan in which everyone can take part.
Openness, mutual commitment and job satisfaction
are central to our corporate policy. Our culture and
values survey conducted every two years both within
Bank J.Van Breda & C° and ABK always provides us
with new insights.
Our nomination as ‘Best Employer’ in 2006, 2010,
and 2012 (based on research carried out by the HRM
Centre at the Vlerick Business School) motivates us to
continue to improve.
We offer our staff a variety of opportunities for maintaining
a good work-life balance such as working part time or
working from home. In addition, we encourage everyone
to keep fit. In 2009, we were the first company in Belgium
to be awarded the ‘Fit Bedrijf’ (fit company) certificate.
This is a type of ISO standard for physical exercise, issued
by Het Gezonde Net België (The Healthy Network Belgium).
ANNUAL REPORT 2013 21
ANNUAL REPORT
IT policy underpins strategy
In 2009 the first stage of a new IT project was launched.
Since that time, all account managers can work with
a wireless mobile connection. This enables them –
at the office as well as with the client – to illustrate advisory
discussions with facts and numbers and to immediately
deal with the resulting administration in a paperless
manner. With this project Bank J.Van Breda & C° was
the first bank in Belgium to integrate wireless working
with electronic documents.
In 2010, 2011, 2012 and 2013 successful new launches
were added to the existing processes. Thus since early
2013 account managers have an integrated module of
consumer loan products on offer. ABK has also been
active on this new system since the first half of 2013.
In addition to this innovative project, a modern, integrated
prospecting system went live in the summer of 2013.
This makes it possible to engage in prospecting in a more
targeted manner, leaving more time for advising our clients.
In July the bank signed an agreement whereby it became
100% owner of Axemia NV. Axemia is an ‘application
development company’ that employs IT specialists
within companies who reinforce the existing IT team and
work with them to develop specific types of software.
At the end of 2013, Axemia NV allocated 7 staff members
to work at Bank J.Van Breda & C° on the development
of new applications. As a result of this acquisition,
Bank J.Van Breda & C° ensures that the know-how built
up during the development of EOS will remain available
in-house after the final delivery of the system.
For the staff of Axemia, this acquisition provides
a guarantee of continuity.
During 2014 the tablet PCs used in the early days
will be replaced by iPads and account managers will begin
using a new integrated advice module for financial planning.
Moreover, we are also starting to modernise the online
banking system (VanBredaOnline).
The extranet application www.vanbredavendor.com
has played a crucial role in the corporate process at
Van Breda Car Finance for a number of years now.
ANNUAL REPORT 2013 22
ANNUAL REPORT
Bank J.Van Breda & C° is optimally equipped
to deal with a financial and economic environment
that could remain extremely challenging for a long time.
Future-oriented
accommodation
Well equipped
for the future
Once again in 2013, the bank’s head office in the beautifully
restored former freight terminal at the Ledeganckkaai in
Antwerp was used continuously to receive clients, and
for events organised by the bank or by associations of
entrepreneurs and liberal professions.
Bank J.Van Breda & C° posted strong financial results
in 2013.
•Net profit amounted to EUR 31.5 million. Equity (group
share) increased from EUR 427 million to EUR 448 million.
•The liquidity and solvency position remained very healthy.
We are constantly on the lookout for unique and distinctive
buildings in which to establish offices, including both
renovation and new-build projects.
•In 2013, the Brussels Montgomery office moved to
new premises and the offices in Wavre and Namur
were renovated. In 2014 the branches in Liège,
Vilvoorde / Wemmel and Mechelen will be relocating.
We have also found new sites for the Bruges, Ghent
and Hasselt branches, and they will be moving into
those locations in 2015-2016.
•As for ABK, the Antwerp, Deurne and Schoten branches
moved into a renovated site in 2013. All central operations
moved to the head office of Bank J Van Breda & C°.
In the first half of 2014, the branches in Turnhout and Mol
will be moving together into a new office in Turnhout.
This equips the bank optimally to deal with a financial
and economic environment that could remain extremely
challenging for a long time.
New working methods within Bank J.Van Breda & C°
will be introduced. In the newest offices, fixed workspaces
are being replaced with flexible meeting rooms that are
used for multiple purposes.
Clearly the current uncertain climate makes it difficult to
provide profit forecasts. Despite signs of revival, the economic
situation in Europe remains shaky. The drastic interventions
of the monetary authorities mean that interest rate trends
are unpredictable over the long run.
The distortion of the deposits market threatens to continue
to affect the interest result. Furthermore, the continuing
difficult economic context has an impact on write-downs
on loans and can put the demand for credit under pressure.
Although the evolution of net profit is difficult to predict,
the bank expects – in the absence of unforeseen
circumstances – to deliver another solid result in 2014,
for several reasons:
•With its asset management policy based on the
long-term interests of our clients, the bank has in
recent years had only limited exposure to the volatility
of the financial markets.
ANNUAL REPORT 2013 23
ANNUAL REPORT
•The increase in staff costs resulting from new recruitment
has reinforced our commercial edge, which – aided by
the high level of customer satisfaction – will once again
lead to strong growth in sales volumes in 2014 and further
growth of the bank’s assets.
•This volume growth will conserve the bank’s revenues
and, thanks to the bank’s cost efficiency, underpin results.
•The bank’s own portfolio is conservatively invested
in short-term securities with a significant proportion in
AAA bonds. Protection of the bank’s equity continues
to be given top priority in 2014. In the past decades,
the write-downs on loans were considerably below
the market average, thanks to the bank’s prudent credit
policy. We are confident that this approach will continue
to be fruitful in the future.
The confidence of the Board of Directors in the long-term
potential of the bank’s strategy has strengthened significantly
since the start of the financial and economic crisis.
The strongly positive trend in the sales results from the
core activities of asset management for entrepreneurs and
liberal professions speaks for itself. Van Breda Car Finance
continues to record excellent financial results and the
preliminary results of the new strategy in ABK augur well.
Although 2014 promises to be a challenging year, these
successes and the very healthy position of the bank form
a sound basis for healthy financial growth in the long term.
On 31 March 2014 Carlo Henriksen will be
succeeded by Dirk Wouters as chairman
of the Executive Committee.
Carlo Henriksen has been at the head of
the bank since 1989. Under his chairmanship,
Bank J.Van Breda & C° developed from a traditional
savings bank into a widely respected niche bank
specialising in asset management for entrepreneurs
and the liberal professions. Bank J.Van Breda & C°
combines sustainable profitability with a low risk
profile and a consistently strong sales growth
in Flanders as well as in Brussels and Wallonia,
where the bank began to be active in 2000.
The Board of Directors is very grateful
to Carlo Henriksen for the success that
Bank J.Van Breda & C° has achieved over the
past 25 years under his leadership.
By appointing a successor from within, the Board
has opted for continuity and affirms its confidence
in the strong team of staff members, thanks to
whom Bank J.Van Breda & C° is well equipped to
continue successfully to develop its niche strategy.
ANNUAL REPORT 2013 24
ANNUAL REPORT
Organisation
chart
ANNUAL REPORT 2013 25
ANNUAL REPORT
Bank J.Van Breda & C°
strives for sustainable growth
Finaxis
Ackermans
& van Haaren
15%
Promofi
25%
75%
Finaxis
100%
100%
Bank
J.Van Breda & C°
100%
Van Breda
Car Finance
Bank J.Van Breda & C° is a specialised bank
that focuses specifically on family businesses and
the liberal professions, covering both professional
and private needs throughout their lifetime.
Delen Private Bank
99.9%
ABK bank
The bank was founded in Lier by Jos Van Breda in 1930
and has maintained its individuality ever since. It is making
every effort to retain its independence in the future.
Since 1998, the bank’s shares have been established
in the Finaxis holding company, along with those of
Delen Private Bank, one of the largest independent asset
managers in Belgium. Thanks to close cooperation,
Bank J.Van Breda & C° also offers its clients
the professional services of this renowned bank.
Ackermans & van Haaren, the reference shareholder,
now owns 75% of the shares in Finaxis.
Promofi holds 25% of the capital, as a result of which
Ackermans & van Haaren, directly and indirectly through
Promofi, controls 78.75% of Finaxis in total.
ANNUAL REPORT 2013 26
ANNUAL REPORT
Ackermans & van Haaren
Ackermans & van Haaren is a diversified group active
in 5 key sectors:
•Infrastructure & Marine Engineering
(DEME, one of the largest dredging companies
in the world - CFE and A.A. Van Laere, two contractors
with headquarters in Belgium)
•Private Banking
(Delen Private Bank, one of the largest independent
private asset managers in Belgium, and asset manager
JM Finn in the UK - Bank J.Van Breda & C°, niche bank
for entrepreneurs and liberal professions in Belgium)
•Real Estate, Leisure & Senior Care
(Leasinvest Real Estate, a listed real-estate
investment trust - Extensa, an important land and
real estate developer focused on Belgium, Luxembourg
and Central Europe)
•Energy & Resources
(Sipef, an agro-industrial group in tropical agriculture)
•Development Capital
(Sofinim en GIB)
The AvH group represented in 2013, through its share in
the participations (incl. CFE), a revenue of EUR 5.7 billion
and employed 22,706 people. The group concentrates on
a limited number of strategic participations with significant
potential for growth. AvH is quoted on the BEL20 index,
the Private Equity NXT index of Euronext Brussels
and the European DJ Stoxx 600.
Info: www.avh.be
ANNUAL REPORT 2013 27
ANNUAL REPORT
Delen Group
The Delen group, originally a stockbroker established
in 1936, is now active via Delen Private Bank as an
asset manager. In its offices in Antwerp, Ghent, Brussels,
Hasselt, Liège, Rumbeke (Roeselare) and branches in
Luxembourg and Geneva, the bank has 254 employees
(552 employees incl. JM Finn).
Since being incorporated in the Ackermans & van Haaren
Group in 1992, it has achieved strong growth year by year.
Since 1998 Delen Private Bank has worked closely with
Bank J.Van Breda & C° to provide service to their
respective customers.
With assets under management of more than
EUR 17 billion, Delen Private Bank is one of the
largest asset management houses in Belgium.
In 2011, Delen Investments entered the British market
with the acquisition of a majority stake (73.49%) in
JM Finn & C° Ltd, a leading London investment manager.
At 31 December 2013, JM Finn had assets under
management or administration of EUR 9.3 billion.
This brings the value of assets entrusted to the group
by its private clients to EUR 29.5 billion.
Info: www.delen.be
2009
2010
2011
2012
2013
214
232
530
551
552
34,570
54,281
57,171
62,617
76,033
6%
57%
5%
10%
21%
13,242,868
15,272,178
22,570,394
25,855,182
29,535,684
303,597
344,089
364,258
414,513
464,073
Cost-income ratio
48.3%
41.7%
44.2%
55.2%
54.8%
Return on equity (ROE)
11.8%
16.8%
16.1%
16.1%
17.3%
Staff
Results
Net profit after taxes
Profit growth
Balance sheet data
Total invested by customers
Equity (group share)
Ratios
All data as at 31.12, with monetary amounts in thousands of euro.
ANNUAL REPORT 2013 28
ANNUAL REPORT
Corporate
governance
Vic Pourbaix, Carlo Henriksen, Peter Devlies, Dirk Wouters and Marc Wijnants.
ANNUAL REPORT 2013 29
ANNUAL REPORT
We opt for a simple structure
with a clear division of labour between
executive and supervisory managers.
Bank J.Van Breda & C° strives
for responsibility and transparency
Executive Committee
The Executive Committee draws up the strategy
and translates it into practical policy lines.
It is responsible for day-to-day management and for
working out an organisational structure with clear areas
of competence and lines of reporting.
Composition as at 1/1/2014:
Jan Suykens (chairman), Luc Bertrand, Piet Dejonghe,
Jacques Delen, Paul De Winter, Carlo Henriksen
(until 31/3/2014), Vic Pourbaix, Peter Devlies,
Dirk Wouters, Willy Lenaers (as from 16/1/2014)
and Marc Wijnants (as from 1/2/2014) (directors).
The members assess the bank’s performance on the basis
of timely, frequent and accurate management information.
This provides an insight into the activities and results of
the operational managers and makes it possible to take
prompt, effective action where necessary.
Remuneration Committee
New composition as from 1/2/2014
Carlo Henriksen (chairman until 31/3/2014), Peter Devlies
(responsible for ALM, reporting, client advise, product
and concept development as from 1/4/2014), Vic Pourbaix
(responsible for client relations and facilities),
Marc Wijnants (responsible for IT and back office),
Dirk Wouters (chairman as from 1/4/2014).
Composition as from 1/1/2014:
Luc Bertrand, Jan Suykens and Willy Lenaers
(as from 16/1/2014).
Board of Directors
The Board of Directors ratifies the strategy followed by
the Executive Committee and periodically assesses
the main policy lines.
The members are responsible for monitoring and
promoting high ethical norms and standards of integrity.
They understand the risks related to banking and
establish acceptable levels by defining clear tolerance
levels and risk limits.
The Remuneration Committee settles the financial
relations with the directors and determines the amount
of their salary.
Audit Committee
The Audit Committee is responsible for monitoring
the financial reporting process, compliance with
administrative, legal and tax rules, and the development
of internal auditing procedures. For this purpose,
the committee members are in direct contact with
both the external and the internal auditors.
Luc Bertrand, Jan Suykens and Willy Lenaers
(as from 16/1/2014).
ANNUAL REPORT 2013 30
ANNUAL REPORT
Specific functions
Internal audit is an independent, objective assessment
function that focuses on examining and assessing
the proper working of the operational departments and
the branch network. This unit evaluates the effectiveness
and efficiency of internal examinations and gives advice
for improving performance.
Head of internal audit:
[email protected]
The ombudswoman is a neutral and independent
mediator who endeavours to work out a solution to
any disputes with clients that are not satisfactorily resolved
by a department or a branch within a reasonable period.
[email protected],
Tel. 0800 93004, Fax 03 271 10 94
Risk management is an independent function whose
purpose is to further embed internal risk management in
the culture and everyday practices of our bank. Its main
roles are offering advice and monitoring and reporting on
operational activities. These core tasks relate to all risks to
which our bank may be subjected.
Credit risks, operational risks, interest and liquidity risks
are closely monitored by the Risk Management cell.
Risk measurement and reporting ensure that the
operational departments are well equipped to keep their
risks under control in an appropriate manner.
Head of Risk Management:
[email protected]
Compliance is concerned with managing risks to the
bank’s reputation. This involves supervising and promoting
the rules relating to banking integrity. The integrity policy
is focused primarily on the following areas: anti-money
laundering measures, tax avoidance policy, transactions in
financial instruments, insider trading, currency manipulation,
privacy legislation, discretion, ethical codes, etc.
Head of Compliance:
[email protected]
ANNUAL REPORT 2013 31
ANNUAL REPORT
Consolidated
financial statements
ANNUAL REPORT 2013 32
ANNUAL REPORT
The following pages contain the profit and loss account,
the consolidated statement of comprehensive income,
the balance sheet, the statement of changes in equity
and the cash flow statement of Bank J.Van Breda & C°.
In a separate online appendix, we collect the full
consolidated financial statements of Bank J.Van Breda & C°
as deposited with the National Bank of Belgium, together
with a description of our IFRS-based accounting principles,
the notes to the financial statements, the unqualified
audit opinion of the recognised auditors and the external
mandates of the members of the Board of Directors.
This document can be found at
www.bankvanbreda.be/info/publications/jaarverslag.aspx
ANNUAL REPORT 2013 33
ANNUAL REPORT
Consolidated profit and loss account
I.
2012
2013
Financial and operating income
1.
Interest income, of which
79,144
76,767
Interest received
147,980
134,717
Interest paid
(68,837)
(57,951)
178
155
2.
Dividends received
3.
Fees and commissions, of which
26,772
31,601
Fees and commissions received
29,992
34,346
Fees and commissions paid
(3,220)
(2,745)
6,091
1,982
154
4,715
4.
Realised profit (loss) on financial assets available for sale
5.
Profit (loss) on financial instruments in the trading portfolio
6.
Profit (loss) on financial instruments at fair value included in results
403
-
7.
Profit (loss) on cashflow hedging, of which
(2,963)
(3,280)
Profit (loss) transferred from equity on hedging instruments
(3,099)
(3,280)
135
-
Ineffective portion of changes in fair value of hedging instruments
8.
Profit (loss) on fair value hedges
9.
Gains and losses from foreign exchange trading
538
1,217
1,899
1,821
6
(49)
10.
Realised profit (loss) on other assets
11.
Other operating income and costs
1,686
2,787
Other operating income
1,711
2,824
Other operating expenses
Banking profit
II.
(26)
(37)
113,908
117,716
Administrative costs
1.
Payroll costs
(38,284)
(39,500)
2.
General and administrative costs
(24,631)
(25,256)
III.
Depreciation and amortisation
1.
Tangible fixed assets (land, building and equipment)
(2,207)
(2,385)
2.
Intangible assets
(1,084)
(1,947)
(253)
(213)
(66,458)
(69,300)
IV.
Provisions
Banking costs
V.
Exceptional impairments on financial assets not held at fair value through profit or loss
1.
On financial assets available for sale
(2,292)
(13)
2.
On loans and receivables (incl. financial leasing)
(2,391)
(1,488)
(60,112)
-
VI.
One-off expense for withdrawal from Beroepskrediet
VII.
Share in the result of associated companies consolidated using the equity method
Profit before tax
Income taxes for one-off expense for withdrawal from Beroepskrediet
Taxes on profits
Profit for the period
Profit attributable to minority interests
Profits attributable to shareholders of the company
278
220
(17,067)
47,135
59,643
-
(14,594)
(14,760)
27,982
32,375
(243)
(828)
27,739
31,546
(in thousand euro)
ANNUAL REPORT 2013 34
ANNUAL REPORT
Consolidated statement of comprehensive income
2012
2013
27,982
32,375
Changes in fair value
17,178
(5,446)
Transfers to the income statement (divestments)
(6,091)
(1,982)
2,292
13
(4,258)
2,690
9,120
(4,725)
Effective portion of changes in fair value
2,564
-
Transfers to the income statement (shutdowns)
3,099
3,280
(1,925)
(1,115)
3,738
2,165
(712)
607
242
(206)
(470)
400
Profit for the period
Other comprehensive income that can later be transferred to the income statement
Assets available for sale
Transfers to the income statement (impairment losses)
Tax
Other comprehensive income on assets available for sale, after tax
Cash flow hedges
Tax
Other comprehensive income on cash flow hedges, after tax
Other comprehensive income that will never be transferred to the income statement
Defined benefit plans
Actuarial gains and losses
Tax
Actuarial gains and losses on defined benefit plans, after tax
Total other comprehensive income for the period, net of income tax
12,388
(2,160)
Total comprehensive income for the period
40,370
30,215
(982)
(718)
39,388
29,498
Comprehensive income for the period attributable to minority interests
Total comprehensive income for the period attributable to equity holders of the bank
(in thousand euro)
ANNUAL REPORT 2013 35
ANNUAL REPORT
Consolidated balance sheet:
assets
2012
2013
I.
Cash and cash balances with central banks
27,583
183,457
II.
Loans and advances to banks
63,521
59,706
III.
Financial assets
5,462
1,243
-
-
1.
Financial assets held for trading
2.
Financial assets at fair value through profit and loss
3.
Financial assets available for sale
4.
Loans and receivables (including finance leases)
517,209
640,743
3,306,419
3,455,495
5.
Fair value hedging: changes in the fair value of the hedged portfolio
3,705
222
6.
Derivatives used for hedging
43
709
Property, plant and equipment
31,764
33,156
V.
Goodwill and other intangible assets
10,629
12,359
VI.
Investments in associates, subsidiaries and joint ventures using the equity method
1,130
1,066
VII.
Tax assets
209
-
20,945
17,563
4,147
4,576
3,992,765
4,410,294
IV.
1.
Tangible assets
1.
Current tax assets
2.
Deferred tax assets
VIII.
Other assets
Total assets
(in thousand euro)
ANNUAL REPORT 2013 36
ANNUAL REPORT
Consolidated balance sheet:
liabilities
I.
2012
2013
6,523
1,486
Financial liabilities
1.
Financial liabilities held for trading
2.
Financial liabilities measured at amortised cost
2.1.
Deposits from credit institutions
2.2.
Deposits from other than credit institutions
2.3.
2.4.
3.
68,647
106,320
3,327,944
3,598,537
Debt certificates including bonds
18,200
128,019
Subordinated liabilities
87,305
84,473
Derivatives used for hedging
12,564
4,329
1,975
1,938
II.
Provisions
III.
Tax liabilities
1.
Current tax liabilities
8,056
5,855
2.
Deferred tax liabilities
1,207
1,228
IV.
16,103
29,836
Total liabilities
Other liabilities
3,548,523
3,962,020
V.
Issued capital
17,500
17,500
VI.
Consolidated reserves
402,195
424,881
VII.
Revaluation reserves
7,572
5,526
VIII.
Minority interes
Total equity
Total equity and liabilities
16,975
367
444,242
448,274
3,992,765
4,410,294
(in thousand euro)
ANNUAL REPORT 2013 37
ANNUAL REPORT
Statement of changes
in equity
Consolidated reserves
Share
capital
& share
premium
Opening balance,
1 January 2012
17,500
Consolidated
reserves
379,127
Defined
retirement
plans
acturial
gains and
losses
-
Share-based
payments
2,851
Revaluation reserves
Financial
assets
available
for sale
Subtotal
381,977
2,864
Cash
flow
hedges
(7,372)
Subtotal
Total
equity
attributable
to equity
holders of
the bank
Minority
interest
Total
equity
(4,508)
394,969
15,996
410,965
Payment of dividend
last financial year
(8,587)
(8,587)
(8,587)
(28)
(8,614)
Profit of the financial
year
27,739
27,739
27,739
243
27,982
11,650
738
12,388
Changes in
revaluation reserves
(431)
Share based
payment: (contribution
of mother company)
Other (mainly
change in scope
of consolidation
intrest%)
52
(431)
8,343
3,738
12,081
1,497
1,497
1,497
1,497
(52)
-
-
25
25
Closing balance,
31 December 2012
17,500
398,331
(431)
4,295
402,195
11,207
(3,634)
7,572
427,267
16,975
444,242
Opening balance,
1 January 2013
17,500
398,331
(431)
4,295
402,195
11,207
(3,634)
7,572
427,267
16,975
444,242
Payment of dividend
last financial year
(11,902)
(11,902)
(11,902)
(62)
(11,964)
Profit of the financial
year
31,546
31,546
31,546
828
32,375
(2,049)
(111)
(2,160)
Changes in
revaluation reserves
367
Share based
payment: (contribution
of mother company)
Other (mainly change
in scope
of consolidation
intrest%)
Closing balance,
31 December 2013
17,500
367
1,028
1,028
(4,581)
2,165
(2,416)
1,028
1,997
(6)
(345)
1,646
370
419,972
(69)
4,978
424,881
6,996
(1,469)
1,028
370
2,016
(17,263)
(15,247)
5,526
447,907
367
448,274
2012
2013
13.20
18.30
Dividend on results of previous year, per share
(in thousand euro)
The capital of Bank J.Van Breda & C° is represented by 650,000 ordinary shares with no par value (same as 2012).
All shares are issued and fully paid-up.
ANNUAL REPORT 2013 38
ANNUAL REPORT
Consolidated
cash flow statement
2012
2013
27,739
31,546
(45,049)
14,760
243
828
3,290
4,332
(6)
49
4,949
1,515
Operating activities
Net profit (loss) for the period
Adjustments to reconcile net profit or loss to net cash provided by operating activities
Current and deferred tax expenses recognised in income statement
Minority interests
Investing and financing
Depreciation / amortisation
Gains and losses on sale of tangible assets
Operating
Impairments
(Increase) decrease in provisions
503
220
Gains and losses on cash flow hedges
2,963
3,280
Gains and losses on fair value hedges
(538)
(1,217)
Gains and losses on financial assets and liabilities held for trading
(154)
(4,715)
Gains and losses on financial assets through profit and loss
(403)
-
Gains and losses on available for sale assets
1,255
5,645
Share based payment
1,497
1,028
(278)
(220)
182
285
(223)
(300)
(4,028)
57,036
Share of the profit or loss of associates and joint ventures accounted for using the equity method
Dividend receipts of associates and joint ventures accounted for using the equity method
Other adjustments
Cash flow from operating profits before changes in operating assets and liabilities
(Increase) decrease in operating assets (excl. cash & cash equivalents)
(132,314)
(282,227)
(Increase) decrease in balances with central banks
1,640
445
(Increase) decrease in loans and advances to banks
4,302
455
(265,499)
(150,657)
122,952
(136,180)
(213)
4,344
(Increase) decrease in loans and receivables
(Increase) decrease in available for sale assets
(Increase) decrease in financial assets held for trading
(Increase) decrease in impairments on financial assets held at fair value through P&L
1,538
(Increase) decrease in accrued income from financial assets
3,216
(239)
(249)
(394)
(Increase) decrease in other assets
Increase (decrease) in operating liabilities (exl. cash & cash equivalents)
26,276
414,319
Increase (decrease) in deposits from credit institutions
54,984
38,235
Increase (decrease) in deposits from other than credit institutions
(16,311)
266,775
Increase (decrease) in debt certificates
(11,904)
109,850
572
1,478
Increase (decrease) in subordinated liabilities (excl. accrued interest)
Increase (decrease) in financial liabilities held for trading
Increase (decrease) in accrued expenses on financial instruments
Increase (decrease) in other liabilities
219
(2,236)
(2,152)
1,583
868
(1,366)
(in thousand euro)
ANNUAL REPORT 2013 39
ANNUAL REPORT
Consolidated
cash flow statement
Cash flow from operating activities
Income tax (paid) refunded
Net cash flow from operating activities
2012
2013
(110,066)
189,128
(9,635)
(11,393)
(119,701)
177,735
(3,585)
(3,771)
941
126
(3,722)
(3,096)
Investing activities
(Cash payments to acquire tangible assets)
Cash receipts from the sale of tangible assets
(Cash payments to acquire intangible assets)
(Cash payments for the investment in subsidiaries, net of cash acquired)
(1,160)
(Other cash payments relating to investing activities)
(Other receipts relating to investing activities)
Net cash flow from investing activities
(34)
1
(6,365)
(7,935)
(8,614)
(11,964)
(7,023)
(4,254)
Financing activities
(Dividends paid)
Cash proceeds from the issuance of subordinated liabilities
(Repayment of subordinated liabilities)
(Other payments relating to financing activities)
(Other receipts relating to financing activities)
Net cash flow from financing activities
(1)
25
(15,612)
Increase of cash and cash equivalents through business combinations
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of the period*
Cash and cash equivalents at the end of the period *
(16,220)
116
(141,678)
153,697
181,887
40,209
40,209
193,906
(*) Cash and cash equivalents are defined as: cash, credit balances with central banks, postal cheque and giro services and amounts
receivable from credit institutions (call money and current accounts), less overdrafts with central banks and deposits to credit institutions
(call money and current accounts).
Reconciliation of ‘Cash and balances with central banks’(balance sheet)
and ‘Cash and cash equivalents’ (cash flow statement)
Cash and cash balances with central banks (assets)
27,583
183,457
(10)
(4)
- Balances with central banks (monetary reserve)
(2,986)
(2,541)
+ Loans and advances to banks (call money and current accounts)
17,654
14,344
-
-
- Deposits from credit institutions (call money and current accounts)
(2,032)
(1,350)
Cash and cash equivalents
40,209
193,906
- Accrued income from cash and cash balances with central banks
- Deposits from central banks (liabilities)
(in thousand euro)
ANNUAL REPORT 2013 40
ANNUAL REPORT
You are welcome
at our bank
ANNUAL REPORT 2013 41
welcome
Branches
Bank J.Van Breda & C°
You can find the full list of our offices and
contact persons at www.bankvanbreda.be/contact
ANNUAL REPORT 2013 42
welcome
Registered
office
Bank J.Van Breda & C° NV
Ledeganckkaai 7,
2000 Antwerpen, Belgium
For information:
call +32 (0)3 217 53 33 | www.bankvanbreda.be
Grote Markt
International telephone:
+32 (0)3 217 53 33
Contact
Hedwige Schmidt:
Tel. +32 (0)3 217 61 11
Fax +32 (0)3 235 49 34
[email protected]
Le
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an
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ai
stra
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Natio
Va
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Zetel Bank
J.Van Breda & C°
alei
ka
se
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Am
Justitiepaleis
UITRIT 5a
SIN
UITRIT 5a
VAT BE 0475 277 432
RPR Antwerpen | FSMA 048 436 A
ABK bank CVBA
at
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kk
Dij
Ledeganckkaai 7
2000 Antwerpen, Belgium
Koninklijk Museum
voor Schone Kunsten
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Van Breda Car Finance NV
aa
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ka
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E17
GENT
BRUGGE
OOSTENDE
ai
SCHELDE
Vl
VAT BE 0404 055 577
RPR Antwerpen | FSMA 014 377 A
IBAN BE 16 6453 4897 1174
BIC JVBABE 22
Groenplaats
A12
BOOM
BRUSSEL
GE
RI
L
E19
BREDA
BRUSSEL
E313
HASSELT
E34
TURNHOUT
NG
Ledeganckkaai 7
2000 Antwerpen, Belgium
For information:
Tel. +32 (0)3 233 89 35
[email protected]
VAT BE 0404 456 841
RPR Antwerpen | FSMA 25485 A
ANNUAL REPORT 2013 43
Editor: [email protected] | 03/2014
The former Antwerpen-Zuid freight depot has been completely restored and is now the headquarters of Bank J.Van Breda & C°.
Bank J.Van Breda & C° is a specialist advisory bank
which exclusively targets entrepreneurs and the
liberal professions. We help you systematically
build up and protect your assets.
Our clients can count on personal, proactive support
from us, for both their private and professional assets,
throughout their lives.
For family businesses and liberal professions
www.bankvanbreda.be
+32 (0)3 217 53 33
Bank J.Van Breda & C°
Ledeganckkaai 7
2000 Antwerpen, Belgium
www.bankvanbreda.be/contact