The first half-year was positive for Bouwfonds. Net income increased by EUR 48 Million to EUR 249 million, while operating expenses increased to EUR 111 million. The increase in income was thus larger than the increase in expenses. Operating profit before taxes increased by 33% to EUR 130 million.
After deduction of taxes (which were higher than last year) and minority interests, net profit turned out at EUR 84 million, compared to EUR 64 million in the first half-year of 2002, an increase of 31%. This includes the result for MNF Bank, which was consolidated as per 1 January 2003. Net profit, excluding this contribution, amounted to EUR 73 million. This was a 14% increase compared to the net profit in 2002.
Total assets amounted to EUR 31.5 billion as per 30 June 2003, compared to EUR 24.4 billion as per 31 December 2002. This includes EUR 5.3 billion arising from the take-over of MNF Bank. Loans increased by 31% to EUR 29.0 billion, or 92% of the total.
The development of residential housing and commercial property achieved a similar result compared to the first half-year of 2002. In the Netherlands more homes were pre-sold and sold than during the corresponding period of last year, partly due to lower interest rates and a greater supply of cheaper homes. Once assigned, the pre-sold homes will contribute to the result for the second half-year. Home sales declined further in Germany while they increased again in France.
Although the commercial property market is still poor, the results of Bouwfonds´s development activities are continuing. This is partly due to a number of successful projects in the Netherlands and Belgium that will make their contributions to the results.
The result of financing activities showed robust growth in the first half-year. The improvement in the result in the residential mortgage activity was partly the result of the MNV take-over. The residential mortgage business was also able to widen its profit margin and improve efficiency. The home mortgage loan portfolio stood at EUR 23.5 billion as per 30 June 2003, compared to EUR 17.1 billion as per 31 December 2002. Property financing also achieved higher results. The total portfolio in project, investment and property lease financing amounted to EUR 6.4 billion as per 30 June 2003, compared to EUR 5.8 billion six months previously.
Asset management activities
Partly due to the delayed introduction of new investment products, the results of asset management activities lagged behind the targets during the first half-year.
Bouwfonds expects to achieve a net profit during the second half of the accounting year comparable to that achieved in the first half of the year.