Annual Report 2015 BinckBank N.V. Barbara Strozzilaan 310 1083 HN Amsterdam P.O. Box 75047 1070 AA Amsterdam t +3120 606 26 66 f +3120 320 41 76 e [email protected] i www.binck.nl Annual Report 2015 // 2 courtesy only. In the event of any disparity, the Dutch version shall prevail. prevail. shall version Dutch the disparity, any of event the In only. courtesy This document is a translation of the Dutch original and is provided as a as provided is and original Dutch the of atranslation is document This No rights may be derived from the translated document. translated the from be derived may No rights Contents About BinckBank • • • • • • • • • • • • 4 Report from the supervisory board • • • • • • 118 Profile BinckBank • • • • • • • • • • 6 Message from the chairman of the BinckBank at a glance • • • • • • • • • 7 supervisory board • • • • • • • • • 120 Key figures • • • • • • • • • • • • 8 Duties of the supervisory board • • • • • 121 Financial calendar 2016 • • • • • • • • • 9 Composition of the supervisory board • • • 121 Key events in 2015 • • • • • • • • • 10 Meetings of the supervisory board and subcommittees in 2015 • • • • • • • • 125 Report of the executive board • • • • • • • 12 Summary of the remuneration report of Chairman’s message • • • • • • • • 14 BinckBank concerning financial year 2015 • • 131 Executive board members • • • • • • • 17 Remuneration of the executive board • • • • 136 Strategy of BinckBank • • • • • • • • • • • • • • • 18 Loans extended to executive directors • • • 137 15 years of Binck • • • • • • • • • • 29 Remuneration of members of the supervisory Financial results 2015 • • • • • • • • 30 board and subcommittees in 2015 • • • • • 138 Information for shareholders • • • • • • 41 Consultation with the Works Council • • • 140 Human Resources • • • • • • • • • 46 Financial statements and dividend • • • • 141 Corporate social responsibility • • • • • 50 Tax policy • • • • • • • • • • • • 54 Financial Statements • • • • • • • • • • 142 Outlook for 2016 • • • • • • • • • • 56 Pillar 3 • • • • • • • • • • • • • • 236 Risk report • • • • • • • • • • • • 58 Risk management • • • • • • • • • 61 Capital management • • • • • • • • 89 Liquidity management • • • • • • • • 99 Management statement • • • • • • • • 104 In-Control Statement • • • • • • • • 105 Corporate Governance • • • • • • • • • 106 Introduction • • • • • • • • • • 108 Future-oriented banking • • • • • • • 108 Dutch Corporate Governance Code • • • • 110 Decree implementing Article 10 of the Takeover Directive • • • • • • • • 115 Developments in 2015 • • • • • • • • 116 3 // Annual Report 2015 Report 2015 Annual Annual Report 2015 // 4 About BinckBank Annual Report 2015 // 5 Profile BinckBank Private individuals today face a number of challenges. Interest rates are historically low, the pension system is being cut back and social security is becoming less secure. We are convinced that consumers must take control themselves to secure their future and at BinckBank we want to help. With its ‘navigator’ role, BinckBank helps customers find the services they need in a user-friendly digital environment. BinckBank N.V. (BinckBank) is an online bank for investors and savers. BinckBank provides services for private customers, independent asset managers and institutional investors (BPO) in the Trading (brokerage), Investing and Saving segments. Trading focuses on customers who want to trade actively in securities and makes up the largest segment of BinckBank. Investing covers more diversified forms of investment, often focused on the long term. In the Saving segment, BinckBank offers a range of savings formulas. In the Trading field BinckBank is the market leader in the Netherlands and Belgium and ranks third in France. BinckBank offers its customers a stable platform giving them access to all important financial markets in the world. This includes order execution at competitive rates, combined with facilities such as excellent customer service, a professional investment website with streaming quotes, news, depth of order book, research and tools for technical and other analysis. BinckBank provides its services under the Alex and Binck brands. The Alex brand name is used in the Netherlands and Spain, while the Binck brand name is used in the Netherlands, Belgium, France and Italy. In the Investing field BinckBank provides Binck Fundcoach and Alex Vermogensbeheer. Binck Fundcoach offers the easiest possible way for customers to invest in investment funds and ETFs. Binck Fundcoach has an online platform where customers can find news, opinions, columns and extensive fund information. A customer who wishes to invest his or her capital, but lacks the time or knowledge to do so, can use Alex Vermogensbeheer. Alex Vermogensbeheer manages its customers’ assets on the basis of a personal investment plan. An automated computer system carries out daily quantitative analyses to determine whether the portfolio needs to be adjusted. BinckBank is listed on Euronext Amsterdam stock exchange and has been included in the Amsterdam Midkap Index (AMX) since 2 March 2007. BinckBank’s market capitalisation at the end of 2015 was € 564 million. BinckBank operates in four European markets and also has an investor centre in Spain targeted at Dutch nationals resident in that country. 6 // BinckBank in a European context Annual Report 2015 Report 2015 Annual BinckBank at a glance BinckBank is an online bank for investors and savers. BinckBank is active in the Operational income by country following banking services: // Trading // Investing // Saving Group Italy France Strategic axes Belgium Netherlands Customer intimacy & operational excellence More balanced income stream Operational income by type of income Navigator role: focus on distribution Strengthening the existing international footprint Continued development of the earning model Other income Net fee and commission income Net interest income Brand positioning Number of transactions Number of client accounts Client satisfaction 9.5 650,000 8 7 9.25 600,000 6 9 5 8.75 550,000 4 in million 3 8.5 500,000 2 8.25 1 8 450,000 0 2013 2014 2015 2013 2014 2015 2013 2014 2015 Adjusted net result Adjusted net earnings per share Cost / income ratio 60,000 0.90 80% 0.80 70% 50,000 7 0.70 60% // 40,000 0.60 50% 0.50 30,000 40% in EUR 0.40 30% in EUR thousand 20,000 0.30 0.20 20% 10,000 0.10 10% 0 0 0% 2013 2014 2015 2013 2014 2015 2013 2014 2015 Annual Report 2015 Report 2015 Annual Key figures (figures in EUR 1,000’s, unless otherwise stated) 2015 2014 2013 Customer figures Number of customer accounts 606,514 595,506 551,970 Number of brokerage accounts 471,993 457,180 420,185 Number of asset management accounts 39,931 42,890 36,602 Number of savings accounts 94,590 95,436 95,183 Number of transactions 9,293,591 8,617,490 8,164,978 Assets under administration 20,575,397 18,538,716 16,124,263 Brokerage accounts 20,354,176 18,248,332 15,761,180 Savings accounts 221,221 290,384 363,083 Assets under management 1,697,871 1,952,193 2,147,591 Company profit and loss account Net interest income 25,724 28,497 27,686 Net fee and commission income 131,461 125,951 137,936 Other income 10,947 11,102 11,049 Result from financial instruments 2,031 351 7 Impairment of financial assets 15 (168) 32 Total income from operating activities 170,178 165,733 176,710 Employee expenses 53,015 56,586 51,556 Depreciation and amortisation 27,253 27,675 29,107 Other operating expenses 50,110 57,124 53,715 Total operating expenses 130,378 141,385 134,378 Result from operating activities 39,800 24,348 42,332 Tax (8,368) (5,555) (10,966) Share in results of associates and joint ventures (730) 12,674 (2,393) Impairment of goodwill - - (10,047) Net result 30,702 31,467 18,926 Result attributable to non-controlling interests (1,076) 87 322 Result attributable to shareholders BinckBank 29,626 31,554 19,248 IFRS amortisation 21,515 21,515 21,515 Fiscal goodwill amortisation 4,407 4,407 4,407 Other adjustments to the net result - - 10,047 Adjusted net result 55,548 57,476 55,217 Average number of shares outstanding during the year 70,251,842 70,171,109 70,432,579 Adjusted net earnings per share (in EUR) 0.79 0.82 0.78 Balance sheet & capital adequacy Balance sheet total 3,436,335 3,311,664 3,209,404 8 // Equity 437,480 440,247 431,631 Total equity 253,582 225,898 200,693 Capital ratio 40.2% 37.1% 36.2% Cost/income ratio Cost/income ratio 77% 85% 76% Cost/income ratio excluding IFRS amortisation 64% 72% 64% Annual Report 2015 Report 2015 Annual Financial calender 2016 JAN FEB MAR APR 1 2 3 1 2 3 4 5 6 7 1 2 3 4 5 6 1 2 3 4 5 6 7 8 9 10 8 9 10 11 12 13 14 7 8 9 10 11 12 13 4 5 6 7 8 9 10 11 12 13 14 15 16 17 15 16 17 18 19 20 21 14 15 16 17 18 19 20 11 12 13 14 15 16 17 18 19 20 21 22 23 24 22 23 24 25 26 27 28 21 22 23 24 25 26 27 18 19 20 21 22 23 24 25 26 27 28 29 30 31 29 28 29 30 31 25 26 27 28 29 30 MAY JUN JUL AUG 1 1 2 3 4 5 1 2 3 1 2 3 4 5 6 7 3 4 5 6 7 8 6 7 8 9 10 11 12 4 5 6 7 8 9 10 8 9 10 11 12 13 14 2 9 10 11 12 13 14 15 13 14 15 16 17 18 19 11 12 13 14 15 16 17 15 16 17 18 19 20 21 16 17 18 19 20 21 22 20 21 22 23 24 25 26 18 19 20 21 22 23 24 22 23 24 25 26 27 28 23 24 25 26 27 28 29 27 28 29 30 26 27 28 29 30 31 29 30 31 25 30 31 SEP OCT NOV DEC 1 2 3 4 1 2 1 2 3 4 5 6 1 2 3 4 5 6 7 8 9 10 11 3 4 5 6 7 8 9 7 8 9 10 11 12 13 5 6 7 8 9 10 11 12 13 14 15 16 17 18 10 11 12 13 14 15 16 14 15 16 17 18 19 20 12 13 14 15 16 17 18 19 20 21 22 23 24 25 17 18 19 20 21 22 23 21 22 23 24 25 26 27 19 20 21 22 23 24 25 26 27 28 29 30 24 25 26 27 28 29 30 28 29 30 26 27 28