Achmea Hypotheekbank N.V. interim report 2012

Transcription

1 Achmea Hypotheekbank N.V. interim report 2012

2 Achmea Hypotheekbank s interim report In the first half of 2012 Achmea Hypotheekbank reported a net profit of EUR 27 million, a EUR 30 million increase compared to the same period in This was largely attributable to a fair value profit of EUR 34 million. The operational result (Profit Before Tax excluding fair value) amounted to a profit of EUR 1 million for the first six months of 2012, a EUR 5 million reduction compared to the same period in 2011, mainly due to the fact that the 2011 interim result included a one-off positive effect due to the release from the general provision of bad debts of EUR 2 million. Furthermore interest margin fell by 4% (EUR 1 million) compared to 2011, as funding costs increased as the bank held significant additional liquidity buffers in anticipation of refinancing commitments during the second half of Operating expenses and fee and commission expenses (added together) were stable compared to The quality of the mortgage portfolio remained very strong, as reflected by the excellent payment performance of our clients. Overall, the first half of 2012 was satisfactory. Capitalisation remains strong as the BIS ratio increased to 13.8% (12.6% at the end of 2011). The bank maintained its good liquidity position throughout the year and raised EUR 0.8 billion by issuing DMPL X RMBS notes at the end of June 2012 (closed and settled in July 2012) at favourable conditions, compared to the market. Following the raise of the rating of Achmea Hypotheekbank by S&P (A), Fitch affirmed the Bank s long term rating in April 2012 at A- (stable outlook). Interest margin 1 million below the first half of 2011 In the first half of 2012, the interest margin was adversely affected by the cost of carrying additional liquidity balances. This cost of carry increased to EUR 24 million in the first half of the year compared to the same period in Income earned on the bank s deposit balances remained low, as interest rates in the capital markets continued on a downward trend. Conversely, the interest margin was positively affected in the first half of 2012, due to gradual repricing of mortgages at levels that reflect the current credit spreads and cost of funding applicable to the mortgage business. Moreover, lower interest rates in the capital markets caused interest margin on part of the mortgage portfolio to widen. The combined effect of the aforementioned positive developments on the interest margin amounted to Euro 18 million, compared to the preceding year. Furthermore, the bank s funding cost was positively affected (EUR 4 million) thanks to the partial early redemption of the state guaranteed loan at the end of On balance, the total effect of all the aforementioned favourable and unfavourable developments caused interest margin to fall by EUR 1 million this year, compared to the first half of Positive fair value result The fair value result was positive, due to the amortization of macro hedge and micro hedge balances (EUR 10 million). Next to that, the narrowing of the EUR/USD basisspread, generated a fair value (accounting) gain of EUR 17 million in the first half of In 2012 the hedge accounting methodology was refined and further improved. This will enable the bank to reduce the volatility of the fair value result in the years ahead. The fair value result is an accounting profit that compensates fair value losses in other reporting periods. Cost efficiency remains a critical focus area The overall cost level remained stable compared to the same period last year, taken into consideration that costs in 2011 were reported under commission expenses and in 2012 were charged under operating expenses. Overall, expenses remained stable, despite the fact that the Bank continued to invest in the quality of its operations. 2

3 Excellent portfolio performance The overall quality of the mortgage portfolio was evidenced by the excellent payment performance of our clients and a stable trend in the level of write-offs. Only 0.65% of the outstanding mortgages were in default, with a recovery rate of 73%. The total arrears in payments of more than 90 days of these mortgages amounted to less than EUR 0.5 million, which is less than 1 basis point of the total mortgage portfolio. The addition to the loan loss provision amounted to 8 basis points during the first half of Capital Ratio s The Core Tier 1 ratio increased to 12.9% at the end June 2012 (11.7% at the end of 2011), mainly due to the overall result of the first half of The BIS ratio as of 30 June 2012 increased from 12.6% at the end of 2011 to 13.8% at the end June For both ratios Achmea Hypotheekbank complies with external and internal minimum capital requirements. Tilburg, 29 August 2012 The Executive Board Achmea Hypotheekbank N.V. is part of Achmea B.V. The bank sells and services its mortgage and other products via the distribution channels of Centraal Beheer Achmea, FBTO, Avéro Achmea and Woonfonds Hypotheken. Achmea Hypotheekbank N.V

4 Consolidated Statement of comprehensive income For the period ended 30 June In thousands of euros Reviewed Reviewed Interest income 308, ,554 Interest expenses 283, ,771 Interest margin 25,655 26,783 Changes in fair value of financial instruments 34,108-11,003 Interest margin and changes in fair value of financial instruments 59,763 15,780 Fees and commission expense 454 2,044 Fee and commission 454 2,044 Operating income 59,309 13,736 Impairment on financial instruments and other assets 4,809 1,020 Operating expenses 19,149 17,580 Profit before income taxes 35,351-4,864 Income tax expense 8,838-1,216 Net profit 26,513-3,648 Other comprehensive income, net of income tax Fair value reserve (available-for-sale financial assets): Net change in fair value ,366 Other comprehensive income for the period, net of income tax ,366 Total comprehensive income for the period 26,166-5,014 Net profit attributable to: Shareholder s equity 26,513-3,648 Net profit for the period 26,513-3,648 Total comprehensive income attributable to: Shareholder s equity 26,166-5,014 Total comprehensive income for the period 26,166-5,014 4

5 Consolidated Statement of Financial Position In thousands of euros 30 June December 2011 (before appropriation of profit) Reviewed Audited Assets Cash and cash equivalents 407, ,652 Derivative assets held for risk management 868, ,533 Loans and advances to banks 1,794,193 1,208,906 Loans and advances to public sector 460, ,777 Loans and advances to customers 13,104,802 13,187,031 Interest-bearing securities 295, ,203 Current tax assets 69,528 57,986 Deferred tax assets Prepayments and other receivables 14,833 22,985 Total assets 17,015,056 15,945,549 Liabilities Derivative liabilities held for risk management 1,334,172 1,187,446 Deposits from banks 3,991,793 2,737,437 Funds entrusted 1,313,701 1,066,223 Debt securities issued 9,613,606 10,213,471 Deferred tax liabilities 87,422 67,158 Accruals and other liabilities 58,086 77,377 Subordinated liabilities 101, ,775 Total liabilities 16,500,228 15,456,887 Share capital 18,152 18,152 Share premium 269, ,206 Reserves 227, ,304 Shareholder s equity 514, ,662 Total equity and liabilities 17,015,056 15,945,549 Achmea Hypotheekbank N.V

6 Consolidated Statement of Changes in Equity In thousands of euros Share Share Fair value Retained Total capital premium reserve earnings Reserves equity Balance at 1 January , ,206 2,251-41, , ,662 Total comprehensive income for the period Net profit or loss ,513-26,513 Other comprehensive income, net of income tax Fair value reserve (available-for-sale financial assets): Net change in fair value Total comprehensive income for the period ,513-26,166 Transaction with owners, recognised directly in equity Contributions by and distributions to owners Distribution of profit ,541-41,541 - Total contributions by and distributions to owners ,541-41,541 - Balance at 30 June , ,206 1,904 26, , ,828 Reviewed Share Share Fair value Retained Total capital premium reserve earnings Reserves equity Balance at 1 January , ,206 1,504 46, , ,456 Total comprehensive income for the period Net profit or loss , ,648 Other comprehensive income, net of income tax Fair value reserve (available-for-sale financial assets): Net change in fair value , ,366 Total comprehensive income for the period ,366-3, ,014 Transaction with owners, recognised directly in equity Contributions by and distributions to owners Distribution of profit ,571 39,571 - Total contributions by and distributions to owners ,571 39,571 - Balance at 30 June , , , , ,442 The fair value reserve comprises the cumulative net changes in the fair value of available-for-sale assets booked through equity. 6

7 Consolidated Statement of Cash Flow For the period ended 30 June In thousands of euros Reviewed Reviewed Cash flow from operating activities Net profit 26,513-3,648 Adjustments for: Impairment on financial instruments and other assets 4,809 1,020 Net interest income -25,655-26,783 Changes in derivatives held for risk management 55, ,075 Changes in tax assets and liabilities Changes in fair value of financial instruments -34,108 11,003 Changes in other non-cash items -242, ,908 Income tax expense 8,838-1, ,857-29,001 Changes in: Loans and advances to banks -626, ,821 Loans and advances to public sector -349, ,500 Loans and advances to customers 440, ,386 Prepayments and other receivables 8,156-3,509 Deposits from banks 1,254, ,756 Funds entrusted 235,763-53,121 Accruals and other liabilities -18,942-6,813 Interest received 288, ,781 Interest paid -234, ,803 Net cash flow from operating activities (1) 792, ,355 Cash flow from investing activities Interest-bearing securities Net cash flow from investing activities (2) Cash flow from financing activities Debt securities issued -799, ,063 Subordinated liabilities -8,445 - Net cash flow from financing activities (3) -807, ,063 Net cash flow (1) + (2) + (3) -14,826-97,708 Cash and cash equivalents as at 1 January 390,652 8,706 Cash and cash equivalents as at 30 June 407,169 5,187 16,517-3,519 Movements in bank overdrafts -31,343-94,189 Movements in cash and cash equivalents and bank overdrafts -14,826-97,708 Achmea Hypotheekbank N.V

8 Notes Introduction The condensed consolidated interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting. The figures do not contain all the information required for a complete set of financial statements and should therefore be read in conjunction with Achmea Hypotheekbank s 2011 Consolidated Financial Statements, which can be found at The condensed consolidated interim financial statements were approved by the Supervisory Board on 29 August This condensed consolidated interim financial information has been reviewed, not audited, by PricewaterhouseCoopers Accountants N.V. Consolidation The condensed consolidated interim financial statements include Achmea Hypotheekbank N.V., the Stichting Incasso Achmea Hypotheken, Achmea Covered Bond Company B.V., the private limited liability companies Dutch Mortgage Portfolio Loans and Securitised Guaranteed Mortgage Loans, established as vehicles for the securitisation programmes. Segmentation In the internal reports used by the Executive Board to allocate resources and monitor performance targets to the operating segments, Achmea Hypotheekbank is identified as a single operating segment. Estimates In preparing the condensed consolidated interim financial statements use has been made of estimates and assumptions (this includes a number of the reported amounts in the condensed consolidated interim financial statements for the period under review). The principal sources of estimates and the judgements made are the same as those used in preparing the 2011 consolidated financial statements of Achmea Hypotheekbank. Contingent liabilities and commitments There are no significant changes in the contingent liabilities and commitments compared with the 2011 consolidated financial statements of Achmea Hypotheekbank. 8

9 Accounting policies Basis of presentation The condensed consolidated interim financial statements of Achmea Hypotheekbank have been prepared in accordance with International Accounting Standard 34 Interim Financial Reporting. The accounting policies used to prepare these condensed consolidated interim financial statements are in accordance with the International Financial Reporting Standards (IFRS), including International Accounting Standards (IAS) and Interpretations as at 30 June 2012 and as adopted by the European Union. The condensed consolidated interim financial statements should be read in conjunction with the Consolidated Financial Statements The consolidated financial statements 2011 are available at All amounts in the condensed consolidated interim financial statements are in millions of euros unless stated otherwise. Changes in reporting The accounting policies applied by Achmea Hypotheekbank in these condensed consolidated interim financial statements are the same as those applied in the consolidated financial statements 2011, except for those described below. Initial application of accounting policies The following amendments to IFRSs became effective for Achmea Hypotheekbank as of 1 January 2012: IFRS 7 Financial Instruments: disclosure (amendment); the International Accounting Standard Board (IASB) issued an amendment to IFRS 7 on 7 October The amendment is applicable to all transferred financial assets that are not derecognised and for any continuing involvement in a transferred asset. The amendments aim to improve financial-statement user understanding of transfer transactions of financial assets (for example, securitisations), including understanding the possible effects of any risks that may remain with the entity related to these transferred assets. The amendments also require additional disclosures if a disproportionate number of transfer transactions are undertaken around the end of a reporting period. These amendments have no impact on net profit or total equity of Achmea Hypotheekbank. The relevant disclosures will for the first time be included in the consolidated financial statement for the year ended 31 December IAS 12 Deferred Tax: Recovery of Underlying Assets (amendment); On 20 December 2010, the IASB issued amendments to IAS 12. The amendments provide an exception to the general principles of IAS 12 which requires the measurement of deferred tax assets and liabilities to reflect the tax consequences that would follow from the manner in which the entity expects to recover the carrying amount of an asset. It introduces the rebuttable presumption for investment property measured using the fair value model in IAS 40, Investment Property, that the recovery of the carrying amount will be through sale. These amendments are applicable for reporting periods beginning on or after 1 January However, at reporting date, the amendments have not been endorsed by the EU and therefore Achmea Hypotheekbank cannot apply these amendments. The amendments will have no significant impact on net profit and total equity of Achmea Hypotheekbank. Accounting policies not applied In addition to the new standards, amendments to standards and interpretations published by the IASB as mentioned in the consolidated financial statements 2011, the following (amendments to) standards were issued in 2012 and are not applied by Achmea Hypotheekbank in preparing its condensed consolidated financial statements: IFRS 1 First-time Adoption of International Financial Reporting Standards (amendment): On 13 March 2012, the IASB issued amendments to IFRS 1, dealing with loans received from governments at a below market rate of interest. First-time adopters of IFRSs are relieved from full retrospective application of IFRSs when accounting for these loans on transition. As Achmea Hypotheekbank already applies EU-IFRS, the amendments are not applicable to Achmea Hypotheekbank and, hence, will have no effect on the financial statements of Achmea Hypotheekbank. Achmea Hypotheekbank N.V

10 IFRS 10 Consolidated Financial Statements, IFRS 11 Joint Arrangements and IFRS 12 Disclosure of Interests in Other Entities: Transition Guidance (amendments); On 28 June 2012, the IASB issued amendments to clarify the transition guidance in IFRS 10 Consolidated Financial Statements. The amendments also provide additional transition relief in IFRS 10, IFRS 11 Joint Arrangements and IFRS 12 Disclosure of Interests in Other Entities, limiting the requirement to provide adjusted comparative information to only the preceding comparative period. Furthermore, for disclosures related to unconsolidated structured entities, the amendments will remove the requirement to present comparative information for periods before IFRS 12 is first applied. The effective date of the amendments is reporting periods beginning on or after 1 January 2013, which is aligned with the effective date of IFRS 10, 11 and 12. To date, these standards have not been endorsed by the EU and therefore Achmea Hypotheekbank can also not apply these amendments. These amendments will have no impact on net profit and total equity of Achmea Hypotheekbank. Annual Improvements to International Financial Reporting Standards: Cycle; On 17 May 2012, the IASB issued Annual Improvements Cycle, a collection of amendments to IFRSs in response to six issues addressed during the cycle. The IASB uses the Annual Improvements process to make necessary, but non-urgent, amendments to IFRSs that will not be included as part of any other project. The amendments are effective for reporting periods beginning on or after 1 January To date, these amendments have not been endorsed by the EU and therefore Achmea Hypotheekbank can also not apply these amendments. These amendments will have no or limited impact on net profit and total equity of Achmea Hypotheekbank. Consolidation and accounting framework The condensed consolidated interim financial statements comprise Achmea Hypotheekbank and its subsidiaries. Related parties Achmea Hypotheekbank is a wholly-owned subsidiary of Achmea Bank Holding N.V. in a group headed by Achmea B.V. In this group Achmea Hypotheekbank has relations with related parties. Related parties refers to other companies in the Group and members of the Supervisory Board and Executive Board of Achmea Hypotheekbank. Banking transactions involve related parties as part of ordinary operations. Disclosures concerning the related parties are included in the consolidated financial statements for the year ended 31 December There have been no changes in the nature or the size of the transactions involving related parties other than those arising from ordinary operations. 10

11 financial risk management Capital management Achmea Hypotheekbank s policy is to maintain a strong capital base to maintain investor, creditor and market confidence and to sustain future development of the business. Under the Dutch Financial Supervision Act (Wft), banks are required to maintain a minimum capital ratio (BIS ratio) of 8%. The Executive Board raised the internally applied target for the minimum capital level from 12% to 13%. Achmea Hypotheekbank complies with external and internal minimum requirements throughout the year with a Core Tier 1 ratio of 12.9% and a BIS ratio of 13.8% at 30 June Qualifying capital and BIS In millions of euros 30 June December 2011 Paid-up and called-up capital Share premium reserve Reserves Deductions -5-5 (Core) Tier 1 capital Lower Tier Upper Tier Deductions -5-5 Tier 2 capital Total qualifying capital Risk-weighted assets 3,959 4,124 Core Tier 1 ratio 12.9% 11.7% BIS ratio 13.8% 12.6% Credit risk Credit quality by class of financial assets The credit quality of financial assets is managed by Achmea Hypotheekbank using external credit ratings, which is in generally classified as low risk. The following table shows the credit quality by class for all financial assets exposed to credit risk. The credit risk of the mortgage portfolio is categorised as: mortgages with a low risk profile (government guaranteed mortgages (Nationale Hypotheekgarantie) and securitized mortgages), mortgages with an average risk profile (all other mortgages receivables and retained securitisation notes) and mortgages with a high risk profile (that part of the mortgage portfolio which has a loan-to-foreclosure value above 75%). This classification is in line with the De Nederlandsche Bank (DNB) classification. The derivatives assets held for risk management are categorised into derivatives with a low risk profile (counterparty rating of AAA, AA+, AA or AA-) and with an average risk profile (counterparty rating of A+, A or A-). This classification is in line with the DNB classification. Achmea Hypotheekbank N.V

12 Credit quality by class of financial assets As at 30 June 2012 Neither past due nor impaired In thousands of euros Low risk Average High risk Past due Individually Total risk but not impaired impaired Cash and cash equivalents 407, ,169 Derivative assets held for risk management 28, , ,014 Loans and advances to banks 1,794, ,794,193 Loans and advances to public sector 460, ,280 Loans and advances to customers 6,634,813 5,063,140 1,251,981 76,575 78,293 13,104,802 Interest-bearing securities 295, ,761 9,620,220 5,903,150 1,251,981 76,575 78,293 16,930,219 Aging analyses of past due but not impaired loans As at 30 June 2012 Less than 1 < 2 2 < 3 > 3 Total In thousands of euros 1 month month month month Loans and advances to customers 45,739 20,518 10,318-76,575 As at 31 December 2011 Neither past due nor impaired In thousands of euros Low risk Average High risk Past due Individually Total risk but not impaired impaired Cash and cash equivalents 390, ,652 Derivative assets held for risk management 13, , ,533 Loans and advances to banks 1,208, ,208,906 Loans and advances to public sector 110, ,777 Loans and advances to customers 6,816,398 5,183,099 1,037,729 77,081 72,724 13,187,031 Interest-bearing securities 153, ,203 8,693,448 5,983,120 1,037,729 77,081 72,724 15,864,102 Aging analyses of past due but not impaired loans As at 31 December 2011 Less than 1 < 2 2 < 3 > 3 Total In thousands of euros 1 month month month month Loans and advances to customers 48,404 18,766 9,911-77,081 12

13 Liquidity risk The following table presents an analysis of assets and liabilities of Achmea Hypotheekbank according to their contractual remaining life. Net liquidity gap As at 30 June 2012 In thousands of euros < 3 months Between Between > 5 years Total Total 3 months 1 and 5 carrying and 1 year years amount Assets Loans and advances to banks, public sector and customers 1,756, ,358 3,379,650 8,570,460 14,428,580 15,359,275 Interest-bearing securities 60, ,730 63, , ,761 Total assets 1,817, ,088 3,443,383 8,570,460 14,718,983 15,655,036 Liabilities Deposits from banks 221,785 2,393,706 1,334,423 6,769 3,956,683 3,991,793 Funds entrusted 224, , , ,991 1,282,832 1,313,701 Debt securities issued 1,762, ,056 7,204, ,521 9,546,049 9,613,606 Subordinated liabilities - 29,750 39,191 30,000 98, ,448 Total liabilities 2,208,603 3,069,284 8,898, ,281 14,884,505 15,020,548 Net liquidity gap -391,551-2,181,196-5,454,954 7,862, ,522 As at 31 December 2011 In thousands of euros < 3 months Between Between > 5 years Total Total 3 months 1 and 5 carrying and 1 year years amount Assets Loans and advances to banks, public sector and customers 863, ,234 3,360,443 8,688,653 13,687,447 14,506,714 Interest-bearing securities - 86,454 64, , ,203 Total assets 863, ,688 3,424,641 8,688,653 13,838,099 14,659,917 Liabilities Deposits from banks 1,025, , , ,179 2,713,083 2,737,437 Funds entrusted 169, , , ,510 1,055,316 1,066,223 Debt securities issued - 2,278,347 7,442, ,606 9,946,878 10,213,471 Subordinated liabilities - 37,750 39,191 30, , ,775 Total liabilities 1,195,111 3,194,253 8,622, ,295 13,822,218 14,124,906 Net liquidity gap -331,994-2,332,565-5,197,918 7,878,358 15,881 This table reflects the funding position and is based on notional amounts of the assets and liabilities excluding revaluation effects. Achmea Hypotheekbank N.V

14 The liquidity gaps shown in the table above will be funded according to the funding plan of Achmea Hypotheekbank. This will be a mix between wholesale and retail funding. The execution of the funding plan remains on track. At the 29th of February 2012 Achmea Hypotheekbank entered into the ECB s LTRO facility and obtained an allotment of EUR 450 million. In May 2012 Achmea Hypotheekbank redeemed EUR 500 million of it s secured EMTN programme. In June 2012 Achmea Hypotheekbank set up and priced a new securitisation transaction, DMPL X (EUR 0.8 billion), which closed and settled in July Financial assets and liabilities at fair value The fair value is the value at which an asset can be traded or for which a liability can be settled between parties who are well informed in this regard, who are willing to enter into a transaction and who operate independently of each other. The table below shows the fair value and carrying amount of the financial assets and liabilities. Financial assets and liabilities at fair value through profit and loss As at 30 June 2012 In thousands of euros Level 1 Level 2 Level 3 Total Financial assets Derivative assets held for risk management - Interest rate swaps - 202, ,637 - Currency swaps - 466, ,585 - Back to back swaps - 198, , , ,013 Financial assets designated at fair value through profit or loss - Private sector loans and advances , , , ,780 Financial assets held for sale - Interest-bearing securities 295, , , , ,780 1,532,554 Financial liabilities Derivative liabilities held for risk management - Interest rate swaps - 1,135,380-1,135,380 - Back to back swaps - 198, ,791-1,334,171-1,334,171 14

15 As at 31 December 2011 In thousands of euros Level 1 Level 2 Level 3 Total Financial assets Derivative assets held for risk management - Interest rate swaps - 237, ,391 - Currency swaps - 392, ,545 - Back to back swaps - 183, , , ,533 Financial assets designated at fair value through profit or loss - Private sector loans and advances , , , ,817 Financial assets held for sale - Interest-bearing securities 153, , , , ,817 1,342,553 Financial liabilities Derivative liabilities held for risk management - Interest rate swaps - 1,003,849-1,003,849 - Back to back swaps - 183, ,597-1,187,446-1,187,446 Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Valuation techniques based on observable inputs, either directly (i.e. as prices) or indirectly (i.e. derived from prices). This category includes instruments valued using quoted prices in active markets for similar instruments, quoted prices for identical or similar instruments in markets that are considered less than active or valuation techniques where all significant inputs are directly or indirectly observable from market data. Level 3: Valuation techniques using significant unobservable inputs. This category includes all instruments where the valuation technique includes inputs not based on observable data and the unobservable inputs have a significant effect on the instruments valuation. In 2012 the valuation of the back to back swap has been changed, the calculation of the discounted cash flows is based on observable inputs. Therefore the classification of the back to back swap has been changed, from level 3 to level 2. The comparative figures have also been adjusted for this. The total profit of financial instruments with a level 3 fair value amounted to EUR 3.0 million (first half year 2011: a loss of EUR 3.8 million), which was included in the statement of comprehensive income. This profit is mitigated by the revaluation of the derivatives related to the private sector loans and advances. The interim condensed consolidated financial statements do not include all financial risk management information and disclosures required in the annual financial statements, and should be read in conjunction with the Achmea Hypotheekbank annual financial statements as at 31 December Achmea Hypotheekbank N.V

16 review report To: The Executive Board and Supervisory Board of Achmea Hypotheekbank N.V. Introduction We have reviewed the accompanying condensed consolidated interim financial information for the six-month period ended 30 June 2012 of Achmea Hypotheekbank N.V., The Hague, which comprises the condensed statement of financial position as at 30 June 2012, the condensed statement of comprehensive income, the condensed statement of changes in equity, the condensed statement of cash flows and the selected explanatory notes for the six-month period then ended. The Executive Board is responsible for the preparation and presentation of this condensed interim financial information in accordance with IAS 34, Interim Financial Reporting as adopted by the European Union. Our responsibility is to express a conclusion on this interim financial information based on our review. Scope We conducted our review in accordance with Dutch law including standard 2410, Review of Interim Financial Information Performed by the Independent Auditor of the company. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with auditing standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Conclusion Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed consolidated interim financial information as at 30 June 2012 is not prepared, in all material respects, in accordance with IAS 34, Interim Financial Reporting as adopted by the European Union. Amsterdam, 29 August 2012 PricewaterhouseCoopers Accountants N.V. G.J. Heuvelink RA 16

17 For more information, please contact: Media Stefan Kloet Mobile: 0031 (0) stefan.kloet@achmea.nl Investors Rudi Kramer Phone: 0031 (0) Mobile: 0031 (0) rudi.kramer@achmea.nl Achmea Hypotheekbank N.V

18 Achmea Hypotheekbank N.V. Spoorlaan 298, 5017 JZ Tilburg, The Netherlands P.O. Box 54, 7300 AB Apeldoorn, The Netherlands Phone Chamber of Commerce The Hague no