BNG Bank N.V. (BNG), based in The Hague in The Netherlands, is a statutory two-tier board company under Dutch law, that is driven by social impact. Our focus is to provide financing and financial services in the public domain. Half of the bank\u2019s share capital is held by the Dutch State and the other half by municipal authorities, provincial authorities and a district water board. BNG Bank N.V. is a public limited company and has its office address at Bordewijklaan 18, 2591 XR, The Hague (listed under Chamber of Commerce number 27008387) in the Netherlands and has no branch offices. The principal place of business is the Netherlands. The name of the ultimate parent of the group is BNG Bank N.V.
The consolidated financial statements were prepared and issued for publication by the Executive Board on 20 March 2026 and will be presented to the General Meeting of Shareholders for adoption on 23 April 2026.
The consolidated financial statements are prepared in accordance with IFRS Accounting Standards as adopted in the European Union, and with Part 9, Book 2 of the Dutch Civil Code.
The consolidated financial statements are prepared on the basis of the going-concern principle. The Executive Board considers this to be appropriate considering that the bank is liquid, has a high quality loan portfolio with impairments that are limited in size and number and proven track record of stability. This is supported by the triple A rating of the bank, the high Core Equity Tier 1 capital and Liquidity Coverage Ratio. No substantial changes are expected based on the outcome of BNG's funding plan, forecast and budget process.
Most balance sheet items are valued at amortised cost. The balance sheet items Financial assets at fair value through the income statement, Financial assets at fair value through other comprehensive income, Derivatives and Financial liabilities at fair value through the income statement are recognised at fair value. The balance sheet item joint ventures is stated according to the equity method. The balance sheet item Property and equipment is stated at cost less accumulated depreciation.
Income is recognised if it is more likely than not that the economic benefits will accrue to BNG and the income can be reliably determined. Expenses are allocated to the period in which the services were provided or to the related income counterbalancing these expenses. For a detailed description, please refer to the accounting principles for the individual balance sheet items.
The euro is the functional and reporting currency used by BNG. All amounts in the consolidated financial statements are stated in millions of euros, unless stated otherwise.
Each year, BNG prepares, as the parent company, the consolidated financial statements for the company and its subsidiary BNG Gebiedsontwikkeling B.V. the financial statements of the parent company and its subsidiary which are used to prepare the consolidated financial statements are drawn up at the same reporting date, and are based on uniform principles.
All intra-group transactions and balances, including income, expenses and dividends, have been fully eliminated in the consolidated financial statements. The consolidated financial statements comprise all subsidiaries over which BNG has control. The consolidation base subject to prudential regulation (CRR/CRD IV) is identical to the consolidation base under International Financial Reporting Standards (IFRS). We refer to the disclosure note 'Related parties' for more details.
Control exists if BNG is exposed as an investor to variable returns due to its involvement and is able to influence these returns by exercising power over the relevant activities of the investment. Group companies are consolidated in full from the date that control has been acquired until such time as control ceases to exist. In determining whether BNG has control over investment funds in which it holds units or shares, the financial interests held by BNG as a participant are taken into consideration.
In 2025, BNG\u2019s excellent capital and liquidity position continued to contribute to the bank\u2019s ability to provide public domain clients with funding at competitive rates.
The main driver behind our net profit is the net result on interest. Compared to last year, net profits are lower due to the decrease in interest result, an increase in the negative result on financial transactions, higher staff costs, a restructuring provision and an increase in impairments due to higher stage 3 impairments. Also, BNG had higher bank levies due to a higher balance sheet amount in 2024 compared to 2023.
Throughout the year, BNG monitors the credit worthiness developments in the various sectors we operate in and whether clients are experiencing financial difficulties. The credit worthiness of BNG\u2019s portfolio remains high.
If relevant, further details of the impact on significant estimates and methods used are provided in the relevant notes.
BNG assesses involvement in non-consolidated structured entities on a case-by-case basis, with due regard for the nature, purpose, size and activities of those entities. Investments in investment funds through participating interests or in securitisation positions and covered bond programmes (issued by \u2018special-purpose entities\u2019) are non-consolidated structured entities for BNG. Due to its involvement in these entities, BNG is exposed to variable returns, partly based on their performance. These structured entities have been designed so that voting or similar rights are not the dominant factor in deciding\u00a0who controls the entity, but rather control is determined by contractual provisions. As a result, BNG does not have control over these non-consolidated entities, in which it only acts as an investor.
The most significant accounting estimates and judgements applied in these consolidated financial statements relate to fair value measurement of financial instruments, impairment of financial assets and provisions.
The most important methods and estimates relate to the fair value measurement of financial instruments for which there is no active market (for a more detailed description, see section 'Fair value of Financial Instruments\u2019). BNG uses generally accepted valuation models to measure the fair value of these financial instruments. For level 2 instruments, BNG uses observable inputs to determine forward curves, discounting curves, volatility curves, inflation curves and spread curves. For level 3 instruments, the main unobservable inputs relate to recovery rates and correlation factors for bonds with credit and liquidity spreads. The results of these models are based on various assumptions, including the discount rate and the future expected cash flows. Differences in the assumptions may have an effect on the reported values.
For the estimates and judgements to determine the impairment of financial assets we use internal estimation techniques to determine forward-looking information, Probability of Default (PD), Loss Given Default (LGD), Exposure At Default (EAD) and Significant Increase Credit Risk (SICR). Furthermore, for non-performing assets the bank assesses the net present value of expected future cash flows (including the valuation of underlying collateral) for three probability weighted scenarios. For further details please refer to 'Impairment of financial assets'. For recognised provisions in the balance sheet see specific topic on provisions.
Other provisions, for example the restructuring provision, are recognised based on reliable estimates, see the specific topic on provisions.
For a detailed description of the methods and assumptions used, please refer to the accounting principles for the individual balance sheet items or topics. BNG periodically evaluates the estimates and assumptions that it applies. Any revisions are reported in the year in which the estimate is revised.
Financial assets and financial liabilities are only netted on the balance sheet if and insofar it is certain that the net and simultaneous settlement of the amount receivable and the amount payable can be legally enforced under normal circumstances as well as in the event of default, insolvency and liquidation, and if there is a distinct intention to settle either the net amount as such, or both items simultaneously. Balance sheet item Amounts due from banks include a netted amount of repos. These items are only netted when there is an enforceable master agreement. For derivatives and taxes, please refer to the specific additional netting rules for the relevant balance sheet items.
Foreign currency transactions are translated into functional currency on initial recognition at the exchange rate applicable on the transaction date. At the balance sheet date, foreign currency monetary assets and liabilities are translated into functional currency at the closing rate. Exchange rate results are recognised at the balance sheet date in the income statement, under the Result on financial transactions item, with the exception of (the effective portion of) the foreign currency transactions that were designated in a cash flow hedge accounting relationship. These exchange rate differences are recognised in the cash flow hedge reserve.
When deciding on the deployment of resources and performance measurement, BNG distinguishes between lending activities and area development activities. In the management and set-up of its lending operations, BNG does not distinguish between different segments or business units. The bank\u2019s area development activities are not material compared with its lending activities. Therefore, no segmented information is included in this Annual Report.
BNG applied the mandatory IFRS standards, amendments and interpretations stated below, as issued by the IASB and adopted by the European Union effective 1 January 2025, to our 2025 financial statements.
Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability: issued by the IASB on 15 August 2023 and is endorsed by the EU on 12 November 2024. These amendments became effective per 1 January 2025. There is no impact on BNG as BNG uses foreign currencies to fund or finance the activities, as BNG uses mostly exchangeable currencies.
BNG has decided against early application of amended standards and interpretations endorsed by the EU whose application is mandatory for the financial years on or after 1 January 2026.
There are amendment to IFRS 7 'Financial Instruments: Disclosure' and IFRS 9 'Financial Instruments', BNG will apply these standards to the disclosures and policy in 2026.
There are two standards, not yet adopted and endorsed by the EU:
IFRS 18 'Presentation and Disclosure in Financial Statements' that is expected to be endorsed in the first half of 2026 and to be effective in 2027. BNG has analysed the impact of this standard, and the impact is limited.
IFRS 19 'Subsidiaries without Public Accountability: Disclosures'. BNG will analyse the impact of this standard and it is expected to be limited, as BNG has limited subsidiaries.
BNG classifies its financial assets into the following measurement categories:
those to be measured at fair value (either through other comprehensive income, or through the income statement); and those to be measured at amortised cost.
The classification depends on BNG\u2019s business model for managing financial assets and the contractual terms of the financial assets\u2019 cash flows.
BNG classifies its financial liabilities at amortised cost, unless it has designated liabilities at fair value through the income statement or it is required to measure liabilities at fair value through the income statement, such as derivative liabilities.
Financial instruments are measured at amortised cost where they:
have contractual terms that give rise to cash flows on specified dates, which represent solely payments of principal and interest (SPPI test) on the principal amount outstanding; and
are held within a business model whose objective is achieved by holding to collect contractual cash flows.
These instruments are initially recognised at fair value plus directly attributable transaction costs and subsequently measured at amortised cost. The measurement of credit impairment is based on the three-stage expected credit loss model described below under Impairment of financial assets. Financial assets measured at amortised cost are included in the balance sheet items Cash and balances held with central banks, Amounts due from banks, Cash collateral posted, Interest-bearing securities at amortised cost and Loans and advances at amortised cost. Interest revenue from these financial assets is included in Interest revenue calculated using the effective interest method.
Investments in debt instruments are measured at fair value through other comprehensive income where they:
have contractual terms that give rise to cash flows on specified dates, which represent solely payments of principal and interest (SPPI test) on the principal amount outstanding; and
are held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets.
These debt instruments are initially recognised at fair value plus directly attributable transaction costs and subsequently measured at fair value. Gains and losses arising from changes in fair value are included in other comprehensive income within a separate component of equity, except for the recognition of impairment gains and losses, interest revenue and foreign exchange gains and losses. Interest revenue from these financial assets is included in Interest revenue calculated using the effective interest method. Impairment losses or reversals and foreign exchange gains and losses are also recognised in the income statement.
Upon disposal, the cumulative gain or loss previously recognised in other comprehensive income is reclassified from equity to the income statement. The measurement of credit impairment is based on the three-stage expected credit loss model as applied to financial assets at amortised cost. The expected credit loss model is described below under Impairment of financial assets.
Items at fair value through the income statement comprise:
debt instruments with contractual terms that do not represent solely payments of principal and interest (mandatory);
items specifically designated at fair value through the income statement on initial recognition;
derivatives; and
equity instruments.
Financial instruments held at fair value through the income statement are initially recognised at fair value, with transaction costs recognised in the income statement as incurred. Subsequently, they are measured at fair value and any gains or losses are recognised in the income statement within result on financial transactions as they arise. Interest revenue or expenses from these financial assets and liabilities (except for derivatives involved in hedge accounting) are included in Other interest revenue or Other interest expenses. Interest revenue or expenses from derivatives involved in hedge accounting are included in Interest revenue using the effective interest method or Interest expenses using the effective interest method.
Derivatives are measured at fair value, including market value changes due to the counterparty credit risk (Credit Valuation Adjustment) and due to own credit risk (Debit Valuation Adjustment) for derivative transactions without a daily or limited exchange of collateral.
Upon initial recognition, financial instruments may be designated as measured at fair value through the income statement. A financial asset may only be designated at fair value through the income statement if doing so eliminates or significantly reduces measurement or recognition inconsistencies (i.e. it eliminates an accounting mismatch) that would otherwise arise from measuring financial assets or liabilities on a different basis.
A financial liability may be designated at fair value through the income statement if it eliminates or significantly reduces an accounting mismatch or:
if a host contract contains one or more embedded derivatives; or
if a group of financial assets and liabilities are both managed and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Where a financial liability is designated at fair value through the income statement, the movement in fair value attributable to changes in the bank\u2019s own credit quality is calculated by determining the changes in credit spreads above observable market interest rates and is recognised separately in other comprehensive income within equity.
BNG does not make use of the option under the standard to measure equity instruments at fair value through other comprehensive income. As a result, investments in equity instruments are measured at fair value through the income statement.
A financial asset is derecognised if:
the contractual right to receive cash flows from the asset has expired; or
BNG has retained the right to receive cash flows from the asset but has assumed a contractual obligation to pass on these cash flows, in full and without material delay, to a third party pursuant to a special arrangement; or
the contractual rights to receive cash flows from the asset and virtually all the risks and benefits of this asset have been transferred, i.e. when control over the asset has been transferred.
A write-off is regarded as a derecognition event and is recognised when BNG has no reasonable expectations of recovering (a portion of) the contractual cash flows on a financial asset. In case of a write-off, BNG will directly reduce the gross carrying amount of the financial asset.
If the terms of a financial asset are modified, BNG evaluates whether the cash flows of the modified asset are substantially different. If the cash flows are substantially different, the contractual rights to cash flows from the original financial asset are deemed to have expired. In this case, the original financial asset is derecognised and a new financial asset is recognised at fair value.
BNG derecognises a financial liability when its terms are modified and the cash flows of the modified financial liability are substantially different. In this case, a new financial liability based on the modified terms is recognised at fair value. The difference between the carrying amount of the financial liability extinguished and the new financial liability with modified terms is recognised in profit and loss. A financial liability is also derecognised when the obligation specified in the contract has been discharged or cancelled or has expired.
In case of partial derecognition of financial instruments, BNG applies the First In, First Out (FIFO) principle. The difference between the amount settled and the carrying amount of the asset or liability is immediately and fully recognised in the income statement. If an existing financial asset or liability is contractually exchanged for another contract with the same counterparty on substantially the same terms, the new asset or liability is treated as a continuation of the existing asset or liability. No result is recognised in this case.
Collateral (bonds) furnished by BNG under standard repurchase agreements and securities lending and borrowing transactions are not derecognised because BNG retains all the risks and rewards on the basis of the predetermined repurchase price, and the criteria for derecognition are therefore not met.
BNG retains the financial assets transferred on its balance sheet if all or most of the risks and benefits attached to (components of) the financial assets transferred are retained. For example, the bank may transfer financial assets while retaining all or nearly all of the risks and benefits in the context of repurchase transactions.
BNG has assessed the current loan portfolio with regards to the macro economic factors. These macro economic factors are used to translate historical PDs into forward looking PDs, as required per IFRS 9 standard. These factors are determined on a portfolio basis. An overlay has been applied on the Project Finance PD model, based on the observed defaults in the past years.
BNG assesses whether the credit risk on an exposure has increased significantly on an individual basis. The expected credit losses (ECL) is calculated for the following categories of financial assets that are not measured at fair value through the income statement:
debt instruments measured at amortised cost;
debt instruments measured at fair value through other comprehensive income;
loan commitments; and
financial guarantee contracts.
Financial assets migrate through the following three stages based on the change in credit risk since initial recognition. When a modification of a financial asset results in the derecognition of the existing financial asset and the subsequent recognition of the modified asset, the date of modification shall be regarded as the date of initial recognition.
BNG recognises an ECL allowance reflecting default events that are possible within the next 12 months for exposures without a significant increase in credit risk (SICR) since initial recognition. In addition, BNG makes use of the Low Credit Risk Exemption (LCRE). This avoids exposures with a low credit risk to move to Stage 2 even when there is a SICR, provided that the increase is such that the total credit risk is still low. In both cases, a 30-day past due period acts as a backstop indicator for movement to Stage 2. The 12-month ECL allowance is calculated for all individual exposures as a function of the Exposure At Default (EAD), Probability of Default (PD) and Loss Given Default (LGD) and incorporates forward-looking information.
BNG recognises an ECL allowance reflecting default events that are possible during the remaining lifetime of the financial assets for exposures which have had a significant increase in credit risk since initial recognition, but which are not considered credit-impaired. This mainly includes exposures with a credit rating that is not considered to be investment grade and for which the credit rating dropped at least one notch since initial recognition.
In addition, it also includes exposures with payment arrears between 30 and 90 days, as well as exposures subject to forbearance measures. Other qualitative factors considered are significant adverse changes in business, financial and/or economic conditions in which the borrower operates and actual or expected significant adverse change in operating results of the borrower.
The Stage 2 lifetime ECL is calculated for all individual exposures as a function of the Exposure At Default (EAD), Probability of Default (PD) and Loss Given Default (LGD) and incorporates forward-looking information.
BNG assesses on an individual exposure level whether exposures are non-performing which is fully aligned with the definition of default. This assessment is based on whether one or more events have occurred that have a detrimental impact on the estimated future cash flows of that asset. This includes, but is not limited to, exposures with payment arrears exceeding 90 days. In the event that BNG determines that a counterparty is in default, all related financial assets are considered to be in Stage 3. For exposures that have become non-performing, the bank recognises a lifetime ECL that is determined by taking into account all relevant information, including any collateral or guarantees that apply to the exposure at hand. An instrument is considered to no longer be in default (i.e. to have cured) when it no longer meets any of the default criteria. This will be assessed for each instrument individually.
At each reporting date, the bank assesses whether there has been a significant increase in credit risk for exposures since initial recognition by comparing the risk of default occurring over the remaining expected life from the reporting date and the date of initial recognition. The bank considers reasonable and supportable information that is relevant and available without undue cost or effort for this purpose. This includes quantitative and qualitative information, as well as forward-looking analysis. BNG also makes use of the Low Credit Risk Exemption (LCRE) in order to avoid exposures to move to Stage 2 even when there is a significant increase in credit risk, as long as the total credit risk is still low. An exposure will always migrate to a higher probability of default as asset quality deteriorates.
If asset quality improves up to a point that there is no longer any question of SICR since origination, the ECL allowance reverts from lifetime ECL to 12-month ECL. The allowance for these financial assets is based on a 12-month ECL. When an asset is uncollectible, it is written off against the related provision.
Such assets are written off after all the necessary procedures have been completed and the amount of the loss has been determined. Subsequent recoveries of amounts previously written off reduce the amount of the expense in the income statement.
The classification of the ECL depends on the type of instrument and is as follows:
Financial assets that are performing at the reporting date: as the present value of all cash shortfalls over the expected life of the financial asset discounted by the effective interest rate. The cash shortfall is the difference between the cash flows due to BNG in accordance with the contract and the cash flows that the bank expects to receive.
Financial assets that are non-performing at the reporting date: as the difference between the gross carrying amount and the present value of estimated future cash flows discounted by the effective interest rate.
Undrawn loan commitments: as the present value of the difference between the contractual cash flows that are due to the bank if the commitment is drawn down and the cash flows that the bank expects to receive.
Financial guarantee contracts: as the expected payments to reimburse the holder less any amounts that the bank expects to recover.
ECLs are recognised using the net impairment losses on financial assets line items in the income statement. In the case of debt instruments measured at fair value through other comprehensive income, the measurement of ECLs is based on the three-stage approach as applied to financial assets at amortised cost. The bank recognises the impairment charge in the income statement, with the corresponding amount recognised in other comprehensive income, with no reduction in the carrying amount of the asset in the balance sheet.
The bank\u2019s derivative instruments used to manage interest rate and currency risk are recognised on a trade-date basis at fair value as derivative either on the asset or on the liability side of the balance sheet. The goal is to achieve stability of the annual result, in particular the interest result and to manage the unrealised gains and losses. BNG applies micro hedge accounting in accordance with IFRS 9 and portfolio hedging in accordance with IAS 39 when the conditions set out by the standard are met. Hedge accounting is based on a clearly documented relationship between the hedged item and the hedging instrument. When there is a high (negative) correlation between the hedging instrument on the one hand and the value change of the hedged item or the cash flows generated by the hedged item on the other hand, the hedge is regarded as effective. The hedging relationship is documented at the time that the hedge transaction is entered into. The hedging relationship is then continually tested in order to assess whether it meets the hedge accounting requirements.
In principle, BNG only uses derivatives as hedging instruments. They are mandatorily measured at fair value in the balance sheet. The counterpart in the hedging relationship is the hedged item, which is generally recognised at amortised cost. Insofar as the hedge accounting relationship is effective, hedge accounting enables the bank to neutralise the difference in measurement and result recognition between the hedging instruments and the hedged items. BNG applies both fair value and cash flow hedge accounting.
BNG applies two types of fair value hedge accounting: micro hedge accounting and portfolio hedge accounting.
When a derivative is designated as the hedging instrument in a hedging relationship, the changes in the fair value of the derivative are recognised immediately in the income statement together with changes in the fair value of the hedged item that are attributable to the hedged risk. Sometimes, a derivative may be a component of a hybrid financial instrument that includes both the derivative and a host contract. Such embedded derivative instruments are part of a structured financing transaction that is hedged against changes in fair value by means of matching swap contracts. In such cases, both the hedged item and the hedging derivative instrument are recognised at fair value with changes in fair value in the statement of comprehensive income or as a value adjustment of the hedged item. Currently the bank\u2019s fair value hedges mainly relate to swapping fixed to floating rate transactions. The balance sheet items financial assets measured at fair value through other comprehensive income, financial assets measured at amortised cost, funds entrusted and debt securities are involved.
If the hedging instrument expires or is sold, terminated or exercised, or when the hedge no longer meets the criteria for hedge accounting, or BNG decides to voluntarily discontinue the hedging relationship, the hedge relationship is discontinued prospectively. If the relationship does not meet the hedge effectiveness criteria, BNG discontinues hedge accounting from the last date on which compliance with hedge effectiveness was demonstrated.
Portfolio hedge accounting concerns a group of transactions in euros that are hedged for interest rate risk using a portfolio of derivatives. BNG applies portfolio hedge accounting to the majority of long-term fixed rate loans and a limited number of fixed rate securities. There is no direct relationship between individual hedged items and hedging instruments, but it is shown at the portfolio level that the derivatives involved offset the value changes in the related assets arising from interest rate movements.
Due to the lack of a direct relationship between the assets and the derivatives used for hedging, the value adjustments of the hedged interest rate risk are recognised in the Value adjustments on loans in portfolio hedge accounting balance sheet item.
When a derivative is designated as the hedging instrument in a cash flow hedge relationship, the effective portion of changes in the fair value of the derivative is recognised directly in other comprehensive income and presented in the cash flow hedging reserve within equity. Any ineffective portion of changes in the fair value of the derivative is recognised immediately in the income statement.
The amount recognised in the cash flow hedge reserve is reclassified to the income statement as a reclassification adjustment in the same period as the hedged cash flows affect the income statement. BNG applies cash flow hedge accounting on floating foreign currency transactions and the credit spread of fixed foreign currency transactions. The balance sheet line items Funds entrusted and Debt securities are involved. If the hedge accounting relationship is terminated, the accumulated fair value hedge adjustment is amortised over the remaining term of the financial instrument. If the hedged item is derecognised, the unamortised fair value adjustment is recognised immediately in the income statement.
Following the adoption of IFRS 9 the forward component of a hedging instrument is no longer part of the hedge relationship. The foreign currency basis spread of a cross-currency interest rate swap is accounted for the same way as the forward element of a forward contract. The change in the foreign currency basis spread of this derivative that relates to the hedged item is recognised in the cost of hedging reserve within equity. The amount accumulated in the cost of hedging reserve is reclassified to the income statement at the same time as the hedged item affects the income statement.
The hedge accounting relationship is discontinued when it no longer meets the conditions for hedge accounting, or when the hedged item or hedging instrument is sold or matures. The difference between the preceding balance sheet value and the amortised cost of the hedged item is amortised over the remaining period of the hedged item, to the extent that it is retained on the balance sheet. If all or part of a hedged item is sold or purchased, the relevant portion of the cumulative fair value changes is taken into account in the income statement when determining the result on sales.
Financial assets and liabilities are recognised at settlement date. This means that they are recognised from the moment that the bank is entitled to the benefits or is liable for the obligations arising from the contractual provisions of the financial instrument. This includes both traditional financial instruments (loans, interest-bearing securities and debt securities) and derivatives. Financial assets and liabilities are initially recognised at the transaction price, in other words the fair value plus the transaction costs that are directly attributable to the acquisition of the financial asset or the issuance of the financial liability, with the exception of the transactions recognised at fair value. The transactions recognised at fair value are measured at fair value without taking into account the transaction costs.
If the value of transactions recognised at fair value differs from the transaction price on initial recognition, the profit or loss is included as follows:
For fair value level 1 or 2 transactions, the difference is recognised directly in the Result on financial transactions item of the income statement.
For fair value level 3 transactions, the difference is included in the balance sheet as a transitory item, and amortised over the term of the transaction.
After initial recognition, financial assets and liabilities are measured at either amortised cost or fair value, depending on the classification of the transaction. In addition to the notional amount, the amortised cost consists of accrued interest, settled transaction costs and/or premiums or discounts distributed in accordance with the effective interest method over the interest rate maturity of the transaction.
Derivative financial instruments are contracts whose value is derived from one or more underlying prices, indexes or other variables, and typically comprise instruments such as swaps, forward rate agreements, futures and options. From initial recognition, derivatives are in principle carried at fair value and classified as held for trading. The carrying value of a derivative is remeasured at fair value throughout the life of the contract and any fair value movements are recognised under the Result on financial transactions item in the income statement. Derivatives are included under assets if they have a net positive fair value or under liabilities for a net negative fair value, with the exception of derivative transactions entered under a central clearing house. For these derivatives, netting takes place of the fair value of all derivatives with a financial counterparty that acts as an intermediary between the bank and the central clearing house. If the derivative transactions are entered under a central clearing house and are also part of a Settle to Market (STM) derivative contract the derivative position is also netted with the collateral posted/received.
Derivatives embedded in financial liabilities are classified and valued separately if all of the following conditions have been met:
there is no close relationship between the economic characteristics and risks of the embedded derivative on the one hand and those of the financial instrument;
the financial instrument is not carried at fair value, with value movements recognised through the income statement; and
a separate derivative instrument on the same terms would match the definition of a derivative.
Derivatives that meet these conditions are recognised in the Derivatives balance sheet item and carried at fair value. Contracts are only reassessed if there is a change in the contractual terms which materially affects the expected cash flows.
Derivatives that do not meet the conditions to be separated are included in the balance sheet item where the financial instrument is recognised. This usually concerns options relating to early redemption. The measurement of these derivatives follows the measurement of the financial instrument. If this is the amortised cost, the option is in principle measured at zero. In all other cases, the option is measured at fair value.
The fair value is the price (not adjusted for transaction costs) which, regardless of the company\u2019s intention or capability, would be received if a financial asset was sold, or the price that would be paid if a financial liability was transferred in an orderly transaction between market participants as at the measurement date under the current market conditions. The starting point is that the valuation must be viewed from the perspective of market parties, for which only the specific characteristics and limitations of the financial instrument may be taken into consideration. Fair value is based on quoted market prices in active markets or, if unavailable, on modelled valuation techniques.
Valuation techniques are generally used to determine the fair value of unlisted assets and liabilities and over-the-counter (OTC) derivatives. This concerns generally accepted techniques and methods such as option pricing models, discounted cash flows, forward pricing and credit and liquidity spreads. Contractual conditions are taken into account and available objective market data are used, such as market-based yield curves for discounting, correlations, volatilities, cross-currency basis spreads, credit spreads, valuation adjustments and other factors, estimates and assumptions which market parties would use to determine the price. Fair value Level 3 valuations are based in part on assumptions that are not observable in the market. For a detailed description of how the fair value measurement is determined, please refer to section 'Fair value of financial instruments' in the consolidated financial statements.
This balance sheet item includes value adjustments resulting from the fair value portfolio hedge accounting. This refers to the effective portion of movements in market value resulting from hedging the interest rate risk in financial assets at the portfolio level. The value adjustments recognised are amortised over the maturity period of the hedged financial assets in the income statement.
Borrowings (including repurchase transactions) and debt securities are carried in the balance sheet at amortised cost unless the liabilities are measured at fair value through the income statement. As regards transactions in Debt securities and Funds entrusted that are involved in a micro fair value hedge accounting relationship, the amortised cost is adjusted for the effective portion of the movements in fair value arising from interest rate risk. Any repurchased obligations are removed from the balance sheet, and the difference between the carrying amount and the transaction value is recognised in the income statement.
Joint ventures are stated according to the equity method. Joint ventures are collaborations in which BNG and other parties with joint control over the contractual agreements have contractual entitlements to the net assets. These contractual agreements are structured by means of separate legal entities. The joint control of the arrangement is contractually agreed and only exists if the relevant activities under the arrangement require the unanimous consent of the parties sharing control. For a description of the bank\u2019s Joint ventures, please refer to section 'Joint ventures' of this document.
All property and equipment owned by the bank is valued at cost less accumulated depreciation. Property relates to land, buildings and technical installations. Equipment relates to office machinery, inventory, furniture, hardware, software and artworks. Right-of-use asset are presented under property and equipment and represents the right to use the underlying leased asset.
The depreciation period is determined on the basis of the estimated useful life of the assets (see note 11 to the consolidated financial statements). The estimated useful life and residual value are reviewed annually. Depreciation is calculated on a straight-line basis and charged to the income statement. The right-of-use assets are depreciated over the lease term on a straight-line basis. Land and buildings under construction are not depreciated.
Estimated useful life | \u00a0 |
|---|---|
Buildings | 30 years |
Technical installations | 15 years |
Machinery and inventory | 5 years |
Right-of-use asset | 1-5 years |
Hardware and software | 3 years |
The carrying amount of BNG\u2019s non-financial assets (property and equipment, investments in joint ventures), with the exception of deferred tax assets, is assessed when there is an objective indication of impairment. To determine impairments, an estimate is made of the realisable value and individual assets are divided into groups at the lowest level at which future cash flows can be identified (cash flow generating units). BNG has not recognised any goodwill. The realisable value of an asset or cash flow generating unit is equal to the higher of the value in use and the fair value minus selling costs.
In determining the value in use, the present value of the estimated future cash flows is calculated using a discount rate before tax which reflects both the current market appraisals of the time value of money and the specific risks relating to the asset. Impairments recognised in respect of cash flow generating units are first offset against the carrying amount of any goodwill allocated to the units and subsequently offset pro rata against the carrying amount of the other assets of the unit (or group of units). Non-financial assets which were subject to impairment are reassessed at each balance sheet date. Impairment of a non-financial asset, with the exception of goodwill included in non-financial assets, is reversed through the income statement (Impairments item) if it is possible to establish reliably that the negative effects of the indication for the impairment recognised earlier are mitigated. An impairment is only reversed to the extent that the carrying amount of the asset does not exceed the carrying amount minus depreciation or amortisation, which would have been determined if no impairment had been recognised.
A provision is recognised when there is a current liability, outflow of resources is more probable than not, and reliable estimate can be made. More specific for a restructuring provisions: there is a detailed formal plan for a reorganisation (without possibility of withdrawal), when it is expected that this impacts employees and when there is a reliable estimate of the outflow of resources, in this case employee termination benefits.
The bank classifies its multi-employer pension plan as a defined contribution plan. Under this plan, the members bear almost all of the actuarial and investment risks, while the employer members of the plan are under no obligation to make any supplementary contributions if a deficit occurs in the fund. The obligation consists of payment of the contribution determined by the pension fund. The pension fund determines the contribution each year based on the information contained in its own dataset, taking account of the parameters and requirements specified by the regulatory authority. The obligation to pay a contribution takes effect upon becoming a pension fund member in the relevant year, and not from membership in previous years. The employer\u2019s share of the pension contribution and any supplementary amounts are charged to the result in the year to which the contribution relates.
Other employee benefits are classified as defined benefit plans for which separate provisions have been formed. These other employee benefits include the future costs of interest rate discounts on mortgage loans for the benefit of both active and retired BNG employees.
The level of the provision is determined on the basis of calculations using the Projected Unit Credit Method (PUCM). The provision associated with the mortgage interest rate discount is stated under the provisions balance sheet item. The costs relating to the employee benefits are recognised as staff costs in the income statement. This item also includes a provision for a vitality leave scheme. Under this scheme, active employees with seven or more years of service can take two consecutive months of leave once every seven years while retaining part of their monthly income. The vitality leave scheme is recognised as a defined benefit plan and the costs are recognised as staff costs in the income statement.
The nominal tax amount is calculated on the basis of the statutory nominal tax rates and the tax legislation in force. Tax rate adjustments relating to previous years, participation exemptions and non-deductible costs are also applied when determining the effective tax amount in the income statement. Group companies that form part of the fiscal unit use the applicable nominal tax rate.
Deferred tax assets and deferred tax liabilities are both carried at nominal value. All deferred tax assets and liabilities are stated in the accounts of the parent company of the fiscal unit. Deferred tax assets and liabilities are recognised as temporary differences between the carrying amounts on the one hand and the tax bases of assets and liabilities on the other. The bank has registered deferred tax assets and liabilities for the actuarial results for the employee benefits provision, for the revaluation reserve, for own credit adjustments and for the cash flow hedge reserve.
These deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the periods in which they are expected to be realised. Differences in deferred tax assets and liabilities resulting from a change in tax rates are recognised in the income statement. Deferred tax assets are recognised only to the extent to which taxable profits are expected to be available in the near future to compensate for these temporary differences. Tax assets and liabilities, both current and deferred separately, are netted if they concern the same tax authority and the same type of tax and if netting of these assets and liabilities is permitted by law.
The bank does not expect a top-up tax because the effective tax rate is above the minimum tax rate. BNG does not have any operations in other countries.
The balance sheet is drawn up before profit appropriation. This means that the total net result for the financial year is presented in equity. The revaluation reserve for financial assets at fair value through other comprehensive income and the cash flow hedge reserve are adjusted by recognising a deferred tax liability.
Additional Tier 1 capital concerns perpetual loans involving an annual non-cumulative discretionary payment on the outstanding principal amount, subject to temporary write-down in the event that the CET1 ratio falls below 5.125%. In case of write-down, this amount will be transferred to the Retained earnings. Write-down from the Retained earnings can be reversed (write-up) under certain conditions at the moment that the trigger ratio is back above 5.125% again. BNG is entitled to distribute the interest payment on a discretionary basis in the form of a compensation charged to the Retained earnings. The compensation is determined on the basis of the prevailing principal amount.
BNG has the unilateral contractual option to call the Additional Tier 1 capital issued. As from May 2022, the tranches issued in 2016 (a nominal amount of EUR 309 million) can be redeemed every year in May.
Equity includes a revaluation reserve in which the unrealised changes in fair value of Financial assets at fair value through other comprehensive income, net of tax, are recognised. In the event of a sale of a financial instrument, the cumulative revaluation is recognised in Results on financial transactions. The effective portion of fair value changes in transactions involved in hedge accounting is either credited or charged to the income statement during the period in which the transactions are involved in a hedge accounting relationship.
Financial liabilities at fair value through the income statement are recognised at the relevant funding curve, including the spread for own credit risk. The bank recognises the amount related to changes in fair value attributable to change in credit risk of financial liabilities designated at fair value through the income statement as Own credit adjustment (net of deferred tax assets and liabilities) in Other Comprehensive income within equity.
Under IFRS 9, the foreign currency basis spread of a hedging instrument is no longer part of a hedge relationship. The cost of hedging reserve records movements in foreign currency basis spreads in cross-currency (interest rate) swaps involved in hedge accounting. The amount accumulated in the cost of hedging reserve is reclassified to the income statement at the same time as the hedged item affects the income statement.
Furthermore, equity includes a cash flow hedge reserve, in which the effective portion of the unrealised changes in the fair value of derivatives in cash flow hedge accounting, net of taxes, resulting from changes in the foreign exchange rates and the credit spread component is recognised. The ineffective portion of the hedged risk for cash flow hedge accounting is recognised under Results on financial transactions.
Interest revenue and Interest expenses for all interest-bearing instruments included in the balance sheet are calculated on the basis of the effective interest rate. This method is used for calculating the amortised cost of a financial asset or a financial liability and for allocating the interest income or interest expense to the relevant period. Interest income is calculated by applying the effective interest rate to the gross carrying amount of a financial asset except for financial assets that subsequently become credit-impaired. For credit impaired financial assets, the effective interest rate is applied to the net carrying amount of the financial asset (after deduction of the loss allowance). If a transaction measured at amortised cost is sold, the difference between the carrying amount and the net proceeds of the sale is recognised under Interest result.
In this item, the commission and fees paid or received are recognised in the period in which the services were provided.
This item comprises unrealised market value changes in:
all financial instruments due to foreign exchange rate fluctuations;
derivatives measured at fair value, including market value changes due to the counterparty credit risk (Credit Valuation Adjustment) and due to own credit risk (Debit Valuation Adjustment) for derivative transactions without a daily or limited exchange of collateral;
financial instruments measured at fair value, with changes in fair value recognised through the income statement;
effective portions of the hedged interest rate risk in financial assets and liabilities involved in a fair value hedge accounting relationship;
the amortisation of the balance sheet item Value adjustments on loans in portfolio hedge accounting; and
the ineffective portion of the hedged risk for cash flow hedge accounting.
This item also includes sales and buy-out results for financial instruments measured at fair value. These realised results consist of the difference between the net proceeds of the sale and the carrying amount, including the release of value movements accumulated in equity. Returns from the participating interests (equity instruments) measured at fair value are also recognised under this item. Finally, differences between the fair value on initial recognition and the transaction price regarding to level 1 and 2 financial instruments measured at fair value are also included.
This item includes the results from joint ventures, valued in accordance with the equity method. Dividend payments are recognised in the income statement when they are received.
The other results includes the results not relating to BNG\u2019s core operational activities. This mainly consists of income from consultancy services provided by BNG Gebiedsontwikkeling B.V.
Please refer to the Property and equipment section.
The European resolution regime is based on the EU Bank Recovery and Resolution Directive (BRRD). The full amount payable will be charged to the income statement in the month of payment. The annual contribution to the European resolution fund is recognised in the income statement under the item Contribution to resolution fund.
In accordance with the Banking Tax Act, banks are required to pay a bank levy in October each year. The full amount payable will be charged to the income statement in the month of payment. The annual levy is recognised in the income statement under the item Bank levy.
The consolidated statement of comprehensive income presents the aggregate net result of the reporting period and the direct changes in equity, net of taxes where applicable. In the statement, the amounts net of taxes are presented in groups of items that can be reclassified from equity to the income statement in the future on the one hand and items that can never be reclassified on the other.
The consolidated cash flow statement has been drawn up in accordance with the indirect method. The cash flows are categorised as cash flows from operating, investing and financing activities. Cash and cash equivalents include cash at hand, the available balances with banks and central banks and overnight interbank loans. These funds have less than three months\u2019 maturity from the date of acquisition, are readily convertible into a known amount of cash and are subject to a negligible risk of changes in value. The changes in loans and advances, funds entrusted, derivatives, cash collateral posted and received, and amounts due from and due to banks are included in the cash flow from operating activities. Investing activities comprise purchases, sales and redemptions in the investment portfolio, purchases and sales of joint ventures as well as property and equipment. Drawdowns and repayments of subordinated debt and bond loans, as well as the dividend paid, are presented as financing activities.
Amounts in millions of euros.
", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfPreparationOfFinancialStatementsExplanatory", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i1906": { "value": "BNG Bank N.V. (BNG), based in The Hague in The Netherlands, is a statutory two-tier board company under Dutch law, that is driven by social impact. Our focus is to provide financing and financial services in the public domain. Half of the bank\u2019s share capital is held by the Dutch State and the other half by municipal authorities, provincial authorities and a district water board. BNG Bank N.V. is a public limited company and has its office address at Bordewijklaan 18, 2591 XR, The Hague (listed under Chamber of Commerce number 27008387) in the Netherlands and has no branch offices. The principal place of business is the Netherlands. The name of the ultimate parent of the group is BNG Bank N.V.
The consolidated financial statements were prepared and issued for publication by the Executive Board on 20 March 2026 and will be presented to the General Meeting of Shareholders for adoption on 23 April 2026.
", "dimensions": { "concept": "ifrs-full:DisclosureOfAuthorisationOfFinancialStatementsExplanatory", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i1907": { "value": "BNG Bank N.V. (BNG), based in The Hague in The Netherlands, is a statutory two-tier board company under Dutch law, that is driven by social impact. Our focus is to provide financing and financial services in the public domain. Half of the bank\u2019s share capital is held by the Dutch State and the other half by municipal authorities, provincial authorities and a district water board. BNG Bank N.V. is a public limited company and has its office address at Bordewijklaan 18, 2591 XR, The Hague (listed under Chamber of Commerce number 27008387) in the Netherlands and has no branch offices. The principal place of business is the Netherlands. The name of the ultimate parent of the group is BNG Bank N.V.
The consolidated financial statements were prepared and issued for publication by the Executive Board on 20 March 2026 and will be presented to the General Meeting of Shareholders for adoption on 23 April 2026.
The consolidated financial statements are prepared in accordance with IFRS Accounting Standards as adopted in the European Union, and with Part 9, Book 2 of the Dutch Civil Code.
", "dimensions": { "concept": "ifrs-full:DisclosureOfGeneralInformationAboutFinancialStatementsExplanatory", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "nameofreportingentityorothermeansofidentification-inlinetag-i1897": { "value": "BNG Bank N.V.", "dimensions": { "concept": "ifrs-full:NameOfReportingEntityOrOtherMeansOfIdentification", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "domicileofentity-inlinetag-i1898": { "value": "The Netherlands", "dimensions": { "concept": "ifrs-full:DomicileOfEntity", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "descriptionofnatureofentitysoperationsandprincipalactivities-inlinetag-i1899": { "value": "is a statutory two-tier board company under Dutch law, that is driven by social impact. Our focus is to provide financing and financial services in the public domain.", "dimensions": { "concept": "ifrs-full:DescriptionOfNatureOfEntitysOperationsAndPrincipalActivities", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "nameofparententity-inlinetag-i1900": { "value": "BNG Bank N.V.", "dimensions": { "concept": "ifrs-full:NameOfParentEntity", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "legalformofentity-inlinetag-i1901": { "value": "public limited company", "dimensions": { "concept": "ifrs-full:LegalFormOfEntity", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "addressofregisteredofficeofentity-inlinetag-i1902": { "value": "Bordewijklaan 18, 2591 XR, The Hague", "dimensions": { "concept": "ifrs-full:AddressOfRegisteredOfficeOfEntity", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "countryofincorporation-inlinetag-i1903": { "value": "the Netherlands", "dimensions": { "concept": "ifrs-full:CountryOfIncorporation", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "principalplaceofbusiness-inlinetag-i1904": { "value": "the Netherlands", "dimensions": { "concept": "ifrs-full:PrincipalPlaceOfBusiness", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "nameofultimateparentofgroup-inlinetag-i1905": { "value": "BNG Bank N.V.", "dimensions": { "concept": "ifrs-full:NameOfUltimateParentOfGroup", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i1909": { "value": "The consolidated financial statements are prepared in accordance with IFRS Accounting Standards as adopted in the European Union, and with Part 9, Book 2 of the Dutch Civil Code.
", "dimensions": { "concept": "ifrs-full:StatementOfIFRSCompliance", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "p-blocktag-i1910": { "value": "The consolidated financial statements are prepared on the basis of the going-concern principle. The Executive Board considers this to be appropriate considering that the bank is liquid, has a high quality loan portfolio with impairments that are limited in size and number and proven track record of stability. This is supported by the triple A rating of the bank, the high Core Equity Tier 1 capital and Liquidity Coverage Ratio. No substantial changes are expected based on the outcome of BNG's funding plan, forecast and budget process.
", "dimensions": { "concept": "ifrs-full:DisclosureOfGoingConcernExplanatory", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "p-blocktag-i1911": { "value": "Income is recognised if it is more likely than not that the economic benefits will accrue to BNG and the income can be reliably determined. Expenses are allocated to the period in which the services were provided or to the related income counterbalancing these expenses. For a detailed description, please refer to the accounting principles for the individual balance sheet items.
Interest revenue and Interest expenses for all interest-bearing instruments included in the balance sheet are calculated on the basis of the effective interest rate. This method is used for calculating the amortised cost of a financial asset or a financial liability and for allocating the interest income or interest expense to the relevant period. Interest income is calculated by applying the effective interest rate to the gross carrying amount of a financial asset except for financial assets that subsequently become credit-impaired. For credit impaired financial assets, the effective interest rate is applied to the net carrying amount of the financial asset (after deduction of the loss allowance). If a transaction measured at amortised cost is sold, the difference between the carrying amount and the net proceeds of the sale is recognised under Interest result.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForRecognitionOfRevenue", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "h3-blocktag-i1912": { "value": "The euro is the functional and reporting currency used by BNG. All amounts in the consolidated financial statements are stated in millions of euros, unless stated otherwise.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFunctionalCurrencyExplanatory", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i1915": { "value": "Each year, BNG prepares, as the parent company, the consolidated financial statements for the company and its subsidiary BNG Gebiedsontwikkeling B.V. the financial statements of the parent company and its subsidiary which are used to prepare the consolidated financial statements are drawn up at the same reporting date, and are based on uniform principles.
All intra-group transactions and balances, including income, expenses and dividends, have been fully eliminated in the consolidated financial statements. The consolidated financial statements comprise all subsidiaries over which BNG has control. The consolidation base subject to prudential regulation (CRR/CRD IV) is identical to the consolidation base under International Financial Reporting Standards (IFRS). We refer to the disclosure note 'Related parties' for more details.
Control exists if BNG is exposed as an investor to variable returns due to its involvement and is able to influence these returns by exercising power over the relevant activities of the investment. Group companies are consolidated in full from the date that control has been acquired until such time as control ceases to exist. In determining whether BNG has control over investment funds in which it holds units or shares, the financial interests held by BNG as a participant are taken into consideration.
BNG assesses involvement in non-consolidated structured entities on a case-by-case basis, with due regard for the nature, purpose, size and activities of those entities. Investments in investment funds through participating interests or in securitisation positions and covered bond programmes (issued by \u2018special-purpose entities\u2019) are non-consolidated structured entities for BNG. Due to its involvement in these entities, BNG is exposed to variable returns, partly based on their performance. These structured entities have been designed so that voting or similar rights are not the dominant factor in deciding\u00a0who controls the entity, but rather control is determined by contractual provisions. As a result, BNG does not have control over these non-consolidated entities, in which it only acts as an investor.
", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfConsolidationExplanatory", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "p-blocktag-i1914": { "value": "All intra-group transactions and balances, including income, expenses and dividends, have been fully eliminated in the consolidated financial statements. The consolidated financial statements comprise all subsidiaries over which BNG has control. The consolidation base subject to prudential regulation (CRR/CRD IV) is identical to the consolidation base under International Financial Reporting Standards (IFRS). We refer to the disclosure note 'Related parties' for more details.
Control exists if BNG is exposed as an investor to variable returns due to its involvement and is able to influence these returns by exercising power over the relevant activities of the investment. Group companies are consolidated in full from the date that control has been acquired until such time as control ceases to exist. In determining whether BNG has control over investment funds in which it holds units or shares, the financial interests held by BNG as a participant are taken into consideration.
The most significant accounting estimates and judgements applied in these consolidated financial statements relate to fair value measurement of financial instruments, impairment of financial assets and provisions.
The most important methods and estimates relate to the fair value measurement of financial instruments for which there is no active market (for a more detailed description, see section 'Fair value of Financial Instruments\u2019). BNG uses generally accepted valuation models to measure the fair value of these financial instruments. For level 2 instruments, BNG uses observable inputs to determine forward curves, discounting curves, volatility curves, inflation curves and spread curves. For level 3 instruments, the main unobservable inputs relate to recovery rates and correlation factors for bonds with credit and liquidity spreads. The results of these models are based on various assumptions, including the discount rate and the future expected cash flows. Differences in the assumptions may have an effect on the reported values.
For the estimates and judgements to determine the impairment of financial assets we use internal estimation techniques to determine forward-looking information, Probability of Default (PD), Loss Given Default (LGD), Exposure At Default (EAD) and Significant Increase Credit Risk (SICR). Furthermore, for non-performing assets the bank assesses the net present value of expected future cash flows (including the valuation of underlying collateral) for three probability weighted scenarios. For further details please refer to 'Impairment of financial assets'. For recognised provisions in the balance sheet see specific topic on provisions.
Other provisions, for example the restructuring provision, are recognised based on reliable estimates, see the specific topic on provisions.
For a detailed description of the methods and assumptions used, please refer to the accounting principles for the individual balance sheet items or topics. BNG periodically evaluates the estimates and assumptions that it applies. Any revisions are reported in the year in which the estimate is revised.
Financial assets and financial liabilities are only netted on the balance sheet if and insofar it is certain that the net and simultaneous settlement of the amount receivable and the amount payable can be legally enforced under normal circumstances as well as in the event of default, insolvency and liquidation, and if there is a distinct intention to settle either the net amount as such, or both items simultaneously. Balance sheet item Amounts due from banks include a netted amount of repos. These items are only netted when there is an enforceable master agreement. For derivatives and taxes, please refer to the specific additional netting rules for the relevant balance sheet items.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForOffsettingOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i1919": { "value": "Foreign currency transactions are translated into functional currency on initial recognition at the exchange rate applicable on the transaction date. At the balance sheet date, foreign currency monetary assets and liabilities are translated into functional currency at the closing rate. Exchange rate results are recognised at the balance sheet date in the income statement, under the Result on financial transactions item, with the exception of (the effective portion of) the foreign currency transactions that were designated in a cash flow hedge accounting relationship. These exchange rate differences are recognised in the cash flow hedge reserve.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForForeignCurrencyTranslationExplanatory", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i1920": { "value": "When deciding on the deployment of resources and performance measurement, BNG distinguishes between lending activities and area development activities. In the management and set-up of its lending operations, BNG does not distinguish between different segments or business units. The bank\u2019s area development activities are not material compared with its lending activities. Therefore, no segmented information is included in this Annual Report.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForSegmentReportingExplanatory", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i1939": { "value": "BNG classifies its financial assets into the following measurement categories:
those to be measured at fair value (either through other comprehensive income, or through the income statement); and those to be measured at amortised cost.
The classification depends on BNG\u2019s business model for managing financial assets and the contractual terms of the financial assets\u2019 cash flows.
BNG classifies its financial liabilities at amortised cost, unless it has designated liabilities at fair value through the income statement or it is required to measure liabilities at fair value through the income statement, such as derivative liabilities.
Financial instruments are measured at amortised cost where they:
have contractual terms that give rise to cash flows on specified dates, which represent solely payments of principal and interest (SPPI test) on the principal amount outstanding; and
are held within a business model whose objective is achieved by holding to collect contractual cash flows.
These instruments are initially recognised at fair value plus directly attributable transaction costs and subsequently measured at amortised cost. The measurement of credit impairment is based on the three-stage expected credit loss model described below under Impairment of financial assets. Financial assets measured at amortised cost are included in the balance sheet items Cash and balances held with central banks, Amounts due from banks, Cash collateral posted, Interest-bearing securities at amortised cost and Loans and advances at amortised cost. Interest revenue from these financial assets is included in Interest revenue calculated using the effective interest method.
Investments in debt instruments are measured at fair value through other comprehensive income where they:
have contractual terms that give rise to cash flows on specified dates, which represent solely payments of principal and interest (SPPI test) on the principal amount outstanding; and
are held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets.
These debt instruments are initially recognised at fair value plus directly attributable transaction costs and subsequently measured at fair value. Gains and losses arising from changes in fair value are included in other comprehensive income within a separate component of equity, except for the recognition of impairment gains and losses, interest revenue and foreign exchange gains and losses. Interest revenue from these financial assets is included in Interest revenue calculated using the effective interest method. Impairment losses or reversals and foreign exchange gains and losses are also recognised in the income statement.
Upon disposal, the cumulative gain or loss previously recognised in other comprehensive income is reclassified from equity to the income statement. The measurement of credit impairment is based on the three-stage expected credit loss model as applied to financial assets at amortised cost. The expected credit loss model is described below under Impairment of financial assets.
Items at fair value through the income statement comprise:
debt instruments with contractual terms that do not represent solely payments of principal and interest (mandatory);
items specifically designated at fair value through the income statement on initial recognition;
derivatives; and
equity instruments.
Financial instruments held at fair value through the income statement are initially recognised at fair value, with transaction costs recognised in the income statement as incurred. Subsequently, they are measured at fair value and any gains or losses are recognised in the income statement within result on financial transactions as they arise. Interest revenue or expenses from these financial assets and liabilities (except for derivatives involved in hedge accounting) are included in Other interest revenue or Other interest expenses. Interest revenue or expenses from derivatives involved in hedge accounting are included in Interest revenue using the effective interest method or Interest expenses using the effective interest method.
Derivatives are measured at fair value, including market value changes due to the counterparty credit risk (Credit Valuation Adjustment) and due to own credit risk (Debit Valuation Adjustment) for derivative transactions without a daily or limited exchange of collateral.
Upon initial recognition, financial instruments may be designated as measured at fair value through the income statement. A financial asset may only be designated at fair value through the income statement if doing so eliminates or significantly reduces measurement or recognition inconsistencies (i.e. it eliminates an accounting mismatch) that would otherwise arise from measuring financial assets or liabilities on a different basis.
A financial liability may be designated at fair value through the income statement if it eliminates or significantly reduces an accounting mismatch or:
if a host contract contains one or more embedded derivatives; or
if a group of financial assets and liabilities are both managed and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Where a financial liability is designated at fair value through the income statement, the movement in fair value attributable to changes in the bank\u2019s own credit quality is calculated by determining the changes in credit spreads above observable market interest rates and is recognised separately in other comprehensive income within equity.
BNG does not make use of the option under the standard to measure equity instruments at fair value through other comprehensive income. As a result, investments in equity instruments are measured at fair value through the income statement.
A financial asset is derecognised if:
the contractual right to receive cash flows from the asset has expired; or
BNG has retained the right to receive cash flows from the asset but has assumed a contractual obligation to pass on these cash flows, in full and without material delay, to a third party pursuant to a special arrangement; or
the contractual rights to receive cash flows from the asset and virtually all the risks and benefits of this asset have been transferred, i.e. when control over the asset has been transferred.
A write-off is regarded as a derecognition event and is recognised when BNG has no reasonable expectations of recovering (a portion of) the contractual cash flows on a financial asset. In case of a write-off, BNG will directly reduce the gross carrying amount of the financial asset.
If the terms of a financial asset are modified, BNG evaluates whether the cash flows of the modified asset are substantially different. If the cash flows are substantially different, the contractual rights to cash flows from the original financial asset are deemed to have expired. In this case, the original financial asset is derecognised and a new financial asset is recognised at fair value.
BNG derecognises a financial liability when its terms are modified and the cash flows of the modified financial liability are substantially different. In this case, a new financial liability based on the modified terms is recognised at fair value. The difference between the carrying amount of the financial liability extinguished and the new financial liability with modified terms is recognised in profit and loss. A financial liability is also derecognised when the obligation specified in the contract has been discharged or cancelled or has expired.
In case of partial derecognition of financial instruments, BNG applies the First In, First Out (FIFO) principle. The difference between the amount settled and the carrying amount of the asset or liability is immediately and fully recognised in the income statement. If an existing financial asset or liability is contractually exchanged for another contract with the same counterparty on substantially the same terms, the new asset or liability is treated as a continuation of the existing asset or liability. No result is recognised in this case.
Collateral (bonds) furnished by BNG under standard repurchase agreements and securities lending and borrowing transactions are not derecognised because BNG retains all the risks and rewards on the basis of the predetermined repurchase price, and the criteria for derecognition are therefore not met.
BNG retains the financial assets transferred on its balance sheet if all or most of the risks and benefits attached to (components of) the financial assets transferred are retained. For example, the bank may transfer financial assets while retaining all or nearly all of the risks and benefits in the context of repurchase transactions.
BNG has assessed the current loan portfolio with regards to the macro economic factors. These macro economic factors are used to translate historical PDs into forward looking PDs, as required per IFRS 9 standard. These factors are determined on a portfolio basis. An overlay has been applied on the Project Finance PD model, based on the observed defaults in the past years.
BNG assesses whether the credit risk on an exposure has increased significantly on an individual basis. The expected credit losses (ECL) is calculated for the following categories of financial assets that are not measured at fair value through the income statement:
debt instruments measured at amortised cost;
debt instruments measured at fair value through other comprehensive income;
loan commitments; and
financial guarantee contracts.
Financial assets migrate through the following three stages based on the change in credit risk since initial recognition. When a modification of a financial asset results in the derecognition of the existing financial asset and the subsequent recognition of the modified asset, the date of modification shall be regarded as the date of initial recognition.
BNG recognises an ECL allowance reflecting default events that are possible within the next 12 months for exposures without a significant increase in credit risk (SICR) since initial recognition. In addition, BNG makes use of the Low Credit Risk Exemption (LCRE). This avoids exposures with a low credit risk to move to Stage 2 even when there is a SICR, provided that the increase is such that the total credit risk is still low. In both cases, a 30-day past due period acts as a backstop indicator for movement to Stage 2. The 12-month ECL allowance is calculated for all individual exposures as a function of the Exposure At Default (EAD), Probability of Default (PD) and Loss Given Default (LGD) and incorporates forward-looking information.
BNG recognises an ECL allowance reflecting default events that are possible during the remaining lifetime of the financial assets for exposures which have had a significant increase in credit risk since initial recognition, but which are not considered credit-impaired. This mainly includes exposures with a credit rating that is not considered to be investment grade and for which the credit rating dropped at least one notch since initial recognition.
In addition, it also includes exposures with payment arrears between 30 and 90 days, as well as exposures subject to forbearance measures. Other qualitative factors considered are significant adverse changes in business, financial and/or economic conditions in which the borrower operates and actual or expected significant adverse change in operating results of the borrower.
The Stage 2 lifetime ECL is calculated for all individual exposures as a function of the Exposure At Default (EAD), Probability of Default (PD) and Loss Given Default (LGD) and incorporates forward-looking information.
BNG assesses on an individual exposure level whether exposures are non-performing which is fully aligned with the definition of default. This assessment is based on whether one or more events have occurred that have a detrimental impact on the estimated future cash flows of that asset. This includes, but is not limited to, exposures with payment arrears exceeding 90 days. In the event that BNG determines that a counterparty is in default, all related financial assets are considered to be in Stage 3. For exposures that have become non-performing, the bank recognises a lifetime ECL that is determined by taking into account all relevant information, including any collateral or guarantees that apply to the exposure at hand. An instrument is considered to no longer be in default (i.e. to have cured) when it no longer meets any of the default criteria. This will be assessed for each instrument individually.
At each reporting date, the bank assesses whether there has been a significant increase in credit risk for exposures since initial recognition by comparing the risk of default occurring over the remaining expected life from the reporting date and the date of initial recognition. The bank considers reasonable and supportable information that is relevant and available without undue cost or effort for this purpose. This includes quantitative and qualitative information, as well as forward-looking analysis. BNG also makes use of the Low Credit Risk Exemption (LCRE) in order to avoid exposures to move to Stage 2 even when there is a significant increase in credit risk, as long as the total credit risk is still low. An exposure will always migrate to a higher probability of default as asset quality deteriorates.
If asset quality improves up to a point that there is no longer any question of SICR since origination, the ECL allowance reverts from lifetime ECL to 12-month ECL. The allowance for these financial assets is based on a 12-month ECL. When an asset is uncollectible, it is written off against the related provision.
Such assets are written off after all the necessary procedures have been completed and the amount of the loss has been determined. Subsequent recoveries of amounts previously written off reduce the amount of the expense in the income statement.
The classification of the ECL depends on the type of instrument and is as follows:
Financial assets that are performing at the reporting date: as the present value of all cash shortfalls over the expected life of the financial asset discounted by the effective interest rate. The cash shortfall is the difference between the cash flows due to BNG in accordance with the contract and the cash flows that the bank expects to receive.
Financial assets that are non-performing at the reporting date: as the difference between the gross carrying amount and the present value of estimated future cash flows discounted by the effective interest rate.
Undrawn loan commitments: as the present value of the difference between the contractual cash flows that are due to the bank if the commitment is drawn down and the cash flows that the bank expects to receive.
Financial guarantee contracts: as the expected payments to reimburse the holder less any amounts that the bank expects to recover.
ECLs are recognised using the net impairment losses on financial assets line items in the income statement. In the case of debt instruments measured at fair value through other comprehensive income, the measurement of ECLs is based on the three-stage approach as applied to financial assets at amortised cost. The bank recognises the impairment charge in the income statement, with the corresponding amount recognised in other comprehensive income, with no reduction in the carrying amount of the asset in the balance sheet.
Financial assets and liabilities are recognised at settlement date. This means that they are recognised from the moment that the bank is entitled to the benefits or is liable for the obligations arising from the contractual provisions of the financial instrument. This includes both traditional financial instruments (loans, interest-bearing securities and debt securities) and derivatives. Financial assets and liabilities are initially recognised at the transaction price, in other words the fair value plus the transaction costs that are directly attributable to the acquisition of the financial asset or the issuance of the financial liability, with the exception of the transactions recognised at fair value. The transactions recognised at fair value are measured at fair value without taking into account the transaction costs.
If the value of transactions recognised at fair value differs from the transaction price on initial recognition, the profit or loss is included as follows:
For fair value level 1 or 2 transactions, the difference is recognised directly in the Result on financial transactions item of the income statement.
For fair value level 3 transactions, the difference is included in the balance sheet as a transitory item, and amortised over the term of the transaction.
After initial recognition, financial assets and liabilities are measured at either amortised cost or fair value, depending on the classification of the transaction. In addition to the notional amount, the amortised cost consists of accrued interest, settled transaction costs and/or premiums or discounts distributed in accordance with the effective interest method over the interest rate maturity of the transaction.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialAssetsExplanatory", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i1940": { "value": "BNG classifies its financial assets into the following measurement categories:
those to be measured at fair value (either through other comprehensive income, or through the income statement); and those to be measured at amortised cost.
The classification depends on BNG\u2019s business model for managing financial assets and the contractual terms of the financial assets\u2019 cash flows.
BNG classifies its financial liabilities at amortised cost, unless it has designated liabilities at fair value through the income statement or it is required to measure liabilities at fair value through the income statement, such as derivative liabilities.
Financial instruments are measured at amortised cost where they:
have contractual terms that give rise to cash flows on specified dates, which represent solely payments of principal and interest (SPPI test) on the principal amount outstanding; and
are held within a business model whose objective is achieved by holding to collect contractual cash flows.
These instruments are initially recognised at fair value plus directly attributable transaction costs and subsequently measured at amortised cost. The measurement of credit impairment is based on the three-stage expected credit loss model described below under Impairment of financial assets. Financial assets measured at amortised cost are included in the balance sheet items Cash and balances held with central banks, Amounts due from banks, Cash collateral posted, Interest-bearing securities at amortised cost and Loans and advances at amortised cost. Interest revenue from these financial assets is included in Interest revenue calculated using the effective interest method.
Investments in debt instruments are measured at fair value through other comprehensive income where they:
have contractual terms that give rise to cash flows on specified dates, which represent solely payments of principal and interest (SPPI test) on the principal amount outstanding; and
are held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets.
These debt instruments are initially recognised at fair value plus directly attributable transaction costs and subsequently measured at fair value. Gains and losses arising from changes in fair value are included in other comprehensive income within a separate component of equity, except for the recognition of impairment gains and losses, interest revenue and foreign exchange gains and losses. Interest revenue from these financial assets is included in Interest revenue calculated using the effective interest method. Impairment losses or reversals and foreign exchange gains and losses are also recognised in the income statement.
Upon disposal, the cumulative gain or loss previously recognised in other comprehensive income is reclassified from equity to the income statement. The measurement of credit impairment is based on the three-stage expected credit loss model as applied to financial assets at amortised cost. The expected credit loss model is described below under Impairment of financial assets.
Items at fair value through the income statement comprise:
debt instruments with contractual terms that do not represent solely payments of principal and interest (mandatory);
items specifically designated at fair value through the income statement on initial recognition;
derivatives; and
equity instruments.
Financial instruments held at fair value through the income statement are initially recognised at fair value, with transaction costs recognised in the income statement as incurred. Subsequently, they are measured at fair value and any gains or losses are recognised in the income statement within result on financial transactions as they arise. Interest revenue or expenses from these financial assets and liabilities (except for derivatives involved in hedge accounting) are included in Other interest revenue or Other interest expenses. Interest revenue or expenses from derivatives involved in hedge accounting are included in Interest revenue using the effective interest method or Interest expenses using the effective interest method.
Derivatives are measured at fair value, including market value changes due to the counterparty credit risk (Credit Valuation Adjustment) and due to own credit risk (Debit Valuation Adjustment) for derivative transactions without a daily or limited exchange of collateral.
Upon initial recognition, financial instruments may be designated as measured at fair value through the income statement. A financial asset may only be designated at fair value through the income statement if doing so eliminates or significantly reduces measurement or recognition inconsistencies (i.e. it eliminates an accounting mismatch) that would otherwise arise from measuring financial assets or liabilities on a different basis.
A financial liability may be designated at fair value through the income statement if it eliminates or significantly reduces an accounting mismatch or:
if a host contract contains one or more embedded derivatives; or
if a group of financial assets and liabilities are both managed and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Where a financial liability is designated at fair value through the income statement, the movement in fair value attributable to changes in the bank\u2019s own credit quality is calculated by determining the changes in credit spreads above observable market interest rates and is recognised separately in other comprehensive income within equity.
BNG does not make use of the option under the standard to measure equity instruments at fair value through other comprehensive income. As a result, investments in equity instruments are measured at fair value through the income statement.
A financial asset is derecognised if:
the contractual right to receive cash flows from the asset has expired; or
BNG has retained the right to receive cash flows from the asset but has assumed a contractual obligation to pass on these cash flows, in full and without material delay, to a third party pursuant to a special arrangement; or
the contractual rights to receive cash flows from the asset and virtually all the risks and benefits of this asset have been transferred, i.e. when control over the asset has been transferred.
A write-off is regarded as a derecognition event and is recognised when BNG has no reasonable expectations of recovering (a portion of) the contractual cash flows on a financial asset. In case of a write-off, BNG will directly reduce the gross carrying amount of the financial asset.
If the terms of a financial asset are modified, BNG evaluates whether the cash flows of the modified asset are substantially different. If the cash flows are substantially different, the contractual rights to cash flows from the original financial asset are deemed to have expired. In this case, the original financial asset is derecognised and a new financial asset is recognised at fair value.
BNG derecognises a financial liability when its terms are modified and the cash flows of the modified financial liability are substantially different. In this case, a new financial liability based on the modified terms is recognised at fair value. The difference between the carrying amount of the financial liability extinguished and the new financial liability with modified terms is recognised in profit and loss. A financial liability is also derecognised when the obligation specified in the contract has been discharged or cancelled or has expired.
In case of partial derecognition of financial instruments, BNG applies the First In, First Out (FIFO) principle. The difference between the amount settled and the carrying amount of the asset or liability is immediately and fully recognised in the income statement. If an existing financial asset or liability is contractually exchanged for another contract with the same counterparty on substantially the same terms, the new asset or liability is treated as a continuation of the existing asset or liability. No result is recognised in this case.
Collateral (bonds) furnished by BNG under standard repurchase agreements and securities lending and borrowing transactions are not derecognised because BNG retains all the risks and rewards on the basis of the predetermined repurchase price, and the criteria for derecognition are therefore not met.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i1941": { "value": "BNG classifies its financial assets into the following measurement categories:
those to be measured at fair value (either through other comprehensive income, or through the income statement); and those to be measured at amortised cost.
The classification depends on BNG\u2019s business model for managing financial assets and the contractual terms of the financial assets\u2019 cash flows.
BNG classifies its financial liabilities at amortised cost, unless it has designated liabilities at fair value through the income statement or it is required to measure liabilities at fair value through the income statement, such as derivative liabilities.
Financial instruments are measured at amortised cost where they:
have contractual terms that give rise to cash flows on specified dates, which represent solely payments of principal and interest (SPPI test) on the principal amount outstanding; and
are held within a business model whose objective is achieved by holding to collect contractual cash flows.
These instruments are initially recognised at fair value plus directly attributable transaction costs and subsequently measured at amortised cost. The measurement of credit impairment is based on the three-stage expected credit loss model described below under Impairment of financial assets. Financial assets measured at amortised cost are included in the balance sheet items Cash and balances held with central banks, Amounts due from banks, Cash collateral posted, Interest-bearing securities at amortised cost and Loans and advances at amortised cost. Interest revenue from these financial assets is included in Interest revenue calculated using the effective interest method.
Investments in debt instruments are measured at fair value through other comprehensive income where they:
have contractual terms that give rise to cash flows on specified dates, which represent solely payments of principal and interest (SPPI test) on the principal amount outstanding; and
are held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets.
These debt instruments are initially recognised at fair value plus directly attributable transaction costs and subsequently measured at fair value. Gains and losses arising from changes in fair value are included in other comprehensive income within a separate component of equity, except for the recognition of impairment gains and losses, interest revenue and foreign exchange gains and losses. Interest revenue from these financial assets is included in Interest revenue calculated using the effective interest method. Impairment losses or reversals and foreign exchange gains and losses are also recognised in the income statement.
Upon disposal, the cumulative gain or loss previously recognised in other comprehensive income is reclassified from equity to the income statement. The measurement of credit impairment is based on the three-stage expected credit loss model as applied to financial assets at amortised cost. The expected credit loss model is described below under Impairment of financial assets.
Items at fair value through the income statement comprise:
debt instruments with contractual terms that do not represent solely payments of principal and interest (mandatory);
items specifically designated at fair value through the income statement on initial recognition;
derivatives; and
equity instruments.
Financial instruments held at fair value through the income statement are initially recognised at fair value, with transaction costs recognised in the income statement as incurred. Subsequently, they are measured at fair value and any gains or losses are recognised in the income statement within result on financial transactions as they arise. Interest revenue or expenses from these financial assets and liabilities (except for derivatives involved in hedge accounting) are included in Other interest revenue or Other interest expenses. Interest revenue or expenses from derivatives involved in hedge accounting are included in Interest revenue using the effective interest method or Interest expenses using the effective interest method.
Derivatives are measured at fair value, including market value changes due to the counterparty credit risk (Credit Valuation Adjustment) and due to own credit risk (Debit Valuation Adjustment) for derivative transactions without a daily or limited exchange of collateral.
Upon initial recognition, financial instruments may be designated as measured at fair value through the income statement. A financial asset may only be designated at fair value through the income statement if doing so eliminates or significantly reduces measurement or recognition inconsistencies (i.e. it eliminates an accounting mismatch) that would otherwise arise from measuring financial assets or liabilities on a different basis.
A financial liability may be designated at fair value through the income statement if it eliminates or significantly reduces an accounting mismatch or:
if a host contract contains one or more embedded derivatives; or
if a group of financial assets and liabilities are both managed and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Where a financial liability is designated at fair value through the income statement, the movement in fair value attributable to changes in the bank\u2019s own credit quality is calculated by determining the changes in credit spreads above observable market interest rates and is recognised separately in other comprehensive income within equity.
BNG does not make use of the option under the standard to measure equity instruments at fair value through other comprehensive income. As a result, investments in equity instruments are measured at fair value through the income statement.
A financial asset is derecognised if:
the contractual right to receive cash flows from the asset has expired; or
BNG has retained the right to receive cash flows from the asset but has assumed a contractual obligation to pass on these cash flows, in full and without material delay, to a third party pursuant to a special arrangement; or
the contractual rights to receive cash flows from the asset and virtually all the risks and benefits of this asset have been transferred, i.e. when control over the asset has been transferred.
A write-off is regarded as a derecognition event and is recognised when BNG has no reasonable expectations of recovering (a portion of) the contractual cash flows on a financial asset. In case of a write-off, BNG will directly reduce the gross carrying amount of the financial asset.
If the terms of a financial asset are modified, BNG evaluates whether the cash flows of the modified asset are substantially different. If the cash flows are substantially different, the contractual rights to cash flows from the original financial asset are deemed to have expired. In this case, the original financial asset is derecognised and a new financial asset is recognised at fair value.
BNG derecognises a financial liability when its terms are modified and the cash flows of the modified financial liability are substantially different. In this case, a new financial liability based on the modified terms is recognised at fair value. The difference between the carrying amount of the financial liability extinguished and the new financial liability with modified terms is recognised in profit and loss. A financial liability is also derecognised when the obligation specified in the contract has been discharged or cancelled or has expired.
In case of partial derecognition of financial instruments, BNG applies the First In, First Out (FIFO) principle. The difference between the amount settled and the carrying amount of the asset or liability is immediately and fully recognised in the income statement. If an existing financial asset or liability is contractually exchanged for another contract with the same counterparty on substantially the same terms, the new asset or liability is treated as a continuation of the existing asset or liability. No result is recognised in this case.
Collateral (bonds) furnished by BNG under standard repurchase agreements and securities lending and borrowing transactions are not derecognised because BNG retains all the risks and rewards on the basis of the predetermined repurchase price, and the criteria for derecognition are therefore not met.
", "dimensions": { "concept": "ifrs-full:DisclosureOfMaterialAccountingPolicyInformationExplanatory", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "p-blocktag-i1921": { "value": "Items at fair value through the income statement comprise:
debt instruments with contractual terms that do not represent solely payments of principal and interest (mandatory);
items specifically designated at fair value through the income statement on initial recognition;
derivatives; and
equity instruments.
Financial instruments held at fair value through the income statement are initially recognised at fair value, with transaction costs recognised in the income statement as incurred. Subsequently, they are measured at fair value and any gains or losses are recognised in the income statement within result on financial transactions as they arise. Interest revenue or expenses from these financial assets and liabilities (except for derivatives involved in hedge accounting) are included in Other interest revenue or Other interest expenses. Interest revenue or expenses from derivatives involved in hedge accounting are included in Interest revenue using the effective interest method or Interest expenses using the effective interest method.
Derivatives are measured at fair value, including market value changes due to the counterparty credit risk (Credit Valuation Adjustment) and due to own credit risk (Debit Valuation Adjustment) for derivative transactions without a daily or limited exchange of collateral.
Upon initial recognition, financial instruments may be designated as measured at fair value through the income statement. A financial asset may only be designated at fair value through the income statement if doing so eliminates or significantly reduces measurement or recognition inconsistencies (i.e. it eliminates an accounting mismatch) that would otherwise arise from measuring financial assets or liabilities on a different basis.
A financial liability may be designated at fair value through the income statement if it eliminates or significantly reduces an accounting mismatch or:
if a host contract contains one or more embedded derivatives; or
if a group of financial assets and liabilities are both managed and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Where a financial liability is designated at fair value through the income statement, the movement in fair value attributable to changes in the bank\u2019s own credit quality is calculated by determining the changes in credit spreads above observable market interest rates and is recognised separately in other comprehensive income within equity.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsAtFairValueThroughProfitOrLossExplanatory", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "p-blocktag-i1922": { "value": "Items at fair value through the income statement comprise:
debt instruments with contractual terms that do not represent solely payments of principal and interest (mandatory);
items specifically designated at fair value through the income statement on initial recognition;
derivatives; and
equity instruments.
Financial instruments held at fair value through the income statement are initially recognised at fair value, with transaction costs recognised in the income statement as incurred. Subsequently, they are measured at fair value and any gains or losses are recognised in the income statement within result on financial transactions as they arise. Interest revenue or expenses from these financial assets and liabilities (except for derivatives involved in hedge accounting) are included in Other interest revenue or Other interest expenses. Interest revenue or expenses from derivatives involved in hedge accounting are included in Interest revenue using the effective interest method or Interest expenses using the effective interest method.
Derivatives are measured at fair value, including market value changes due to the counterparty credit risk (Credit Valuation Adjustment) and due to own credit risk (Debit Valuation Adjustment) for derivative transactions without a daily or limited exchange of collateral.
Derivatives that do not meet the conditions to be separated are included in the balance sheet item where the financial instrument is recognised. This usually concerns options relating to early redemption. The measurement of these derivatives follows the measurement of the financial instrument. If this is the amortised cost, the option is in principle measured at zero. In all other cases, the option is measured at fair value.
Borrowings (including repurchase transactions) and debt securities are carried in the balance sheet at amortised cost unless the liabilities are measured at fair value through the income statement. As regards transactions in Debt securities and Funds entrusted that are involved in a micro fair value hedge accounting relationship, the amortised cost is adjusted for the effective portion of the movements in fair value arising from interest rate risk. Any repurchased obligations are removed from the balance sheet, and the difference between the carrying amount and the transaction value is recognised in the income statement.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialLiabilitiesExplanatory", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "h3-blocktag-i1931": { "value": "A financial asset is derecognised if:
the contractual right to receive cash flows from the asset has expired; or
BNG has retained the right to receive cash flows from the asset but has assumed a contractual obligation to pass on these cash flows, in full and without material delay, to a third party pursuant to a special arrangement; or
the contractual rights to receive cash flows from the asset and virtually all the risks and benefits of this asset have been transferred, i.e. when control over the asset has been transferred.
A write-off is regarded as a derecognition event and is recognised when BNG has no reasonable expectations of recovering (a portion of) the contractual cash flows on a financial asset. In case of a write-off, BNG will directly reduce the gross carrying amount of the financial asset.
If the terms of a financial asset are modified, BNG evaluates whether the cash flows of the modified asset are substantially different. If the cash flows are substantially different, the contractual rights to cash flows from the original financial asset are deemed to have expired. In this case, the original financial asset is derecognised and a new financial asset is recognised at fair value.
BNG derecognises a financial liability when its terms are modified and the cash flows of the modified financial liability are substantially different. In this case, a new financial liability based on the modified terms is recognised at fair value. The difference between the carrying amount of the financial liability extinguished and the new financial liability with modified terms is recognised in profit and loss. A financial liability is also derecognised when the obligation specified in the contract has been discharged or cancelled or has expired.
In case of partial derecognition of financial instruments, BNG applies the First In, First Out (FIFO) principle. The difference between the amount settled and the carrying amount of the asset or liability is immediately and fully recognised in the income statement. If an existing financial asset or liability is contractually exchanged for another contract with the same counterparty on substantially the same terms, the new asset or liability is treated as a continuation of the existing asset or liability. No result is recognised in this case.
Collateral (bonds) furnished by BNG under standard repurchase agreements and securities lending and borrowing transactions are not derecognised because BNG retains all the risks and rewards on the basis of the predetermined repurchase price, and the criteria for derecognition are therefore not met.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDerecognitionOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i1943": { "value": "BNG retains the financial assets transferred on its balance sheet if all or most of the risks and benefits attached to (components of) the financial assets transferred are retained. For example, the bank may transfer financial assets while retaining all or nearly all of the risks and benefits in the context of repurchase transactions.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForReclassificationOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i1944": { "value": "BNG retains the financial assets transferred on its balance sheet if all or most of the risks and benefits attached to (components of) the financial assets transferred are retained. For example, the bank may transfer financial assets while retaining all or nearly all of the risks and benefits in the context of repurchase transactions.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForRepurchaseAndReverseRepurchaseAgreementsExplanatory", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i1946": { "value": "BNG has assessed the current loan portfolio with regards to the macro economic factors. These macro economic factors are used to translate historical PDs into forward looking PDs, as required per IFRS 9 standard. These factors are determined on a portfolio basis. An overlay has been applied on the Project Finance PD model, based on the observed defaults in the past years.
BNG assesses whether the credit risk on an exposure has increased significantly on an individual basis. The expected credit losses (ECL) is calculated for the following categories of financial assets that are not measured at fair value through the income statement:
debt instruments measured at amortised cost;
debt instruments measured at fair value through other comprehensive income;
loan commitments; and
financial guarantee contracts.
Financial assets migrate through the following three stages based on the change in credit risk since initial recognition. When a modification of a financial asset results in the derecognition of the existing financial asset and the subsequent recognition of the modified asset, the date of modification shall be regarded as the date of initial recognition.
BNG recognises an ECL allowance reflecting default events that are possible within the next 12 months for exposures without a significant increase in credit risk (SICR) since initial recognition. In addition, BNG makes use of the Low Credit Risk Exemption (LCRE). This avoids exposures with a low credit risk to move to Stage 2 even when there is a SICR, provided that the increase is such that the total credit risk is still low. In both cases, a 30-day past due period acts as a backstop indicator for movement to Stage 2. The 12-month ECL allowance is calculated for all individual exposures as a function of the Exposure At Default (EAD), Probability of Default (PD) and Loss Given Default (LGD) and incorporates forward-looking information.
BNG recognises an ECL allowance reflecting default events that are possible during the remaining lifetime of the financial assets for exposures which have had a significant increase in credit risk since initial recognition, but which are not considered credit-impaired. This mainly includes exposures with a credit rating that is not considered to be investment grade and for which the credit rating dropped at least one notch since initial recognition.
In addition, it also includes exposures with payment arrears between 30 and 90 days, as well as exposures subject to forbearance measures. Other qualitative factors considered are significant adverse changes in business, financial and/or economic conditions in which the borrower operates and actual or expected significant adverse change in operating results of the borrower.
The Stage 2 lifetime ECL is calculated for all individual exposures as a function of the Exposure At Default (EAD), Probability of Default (PD) and Loss Given Default (LGD) and incorporates forward-looking information.
BNG assesses on an individual exposure level whether exposures are non-performing which is fully aligned with the definition of default. This assessment is based on whether one or more events have occurred that have a detrimental impact on the estimated future cash flows of that asset. This includes, but is not limited to, exposures with payment arrears exceeding 90 days. In the event that BNG determines that a counterparty is in default, all related financial assets are considered to be in Stage 3. For exposures that have become non-performing, the bank recognises a lifetime ECL that is determined by taking into account all relevant information, including any collateral or guarantees that apply to the exposure at hand. An instrument is considered to no longer be in default (i.e. to have cured) when it no longer meets any of the default criteria. This will be assessed for each instrument individually.
At each reporting date, the bank assesses whether there has been a significant increase in credit risk for exposures since initial recognition by comparing the risk of default occurring over the remaining expected life from the reporting date and the date of initial recognition. The bank considers reasonable and supportable information that is relevant and available without undue cost or effort for this purpose. This includes quantitative and qualitative information, as well as forward-looking analysis. BNG also makes use of the Low Credit Risk Exemption (LCRE) in order to avoid exposures to move to Stage 2 even when there is a significant increase in credit risk, as long as the total credit risk is still low. An exposure will always migrate to a higher probability of default as asset quality deteriorates.
If asset quality improves up to a point that there is no longer any question of SICR since origination, the ECL allowance reverts from lifetime ECL to 12-month ECL. The allowance for these financial assets is based on a 12-month ECL. When an asset is uncollectible, it is written off against the related provision.
Such assets are written off after all the necessary procedures have been completed and the amount of the loss has been determined. Subsequent recoveries of amounts previously written off reduce the amount of the expense in the income statement.
The classification of the ECL depends on the type of instrument and is as follows:
Financial assets that are performing at the reporting date: as the present value of all cash shortfalls over the expected life of the financial asset discounted by the effective interest rate. The cash shortfall is the difference between the cash flows due to BNG in accordance with the contract and the cash flows that the bank expects to receive.
Financial assets that are non-performing at the reporting date: as the difference between the gross carrying amount and the present value of estimated future cash flows discounted by the effective interest rate.
Undrawn loan commitments: as the present value of the difference between the contractual cash flows that are due to the bank if the commitment is drawn down and the cash flows that the bank expects to receive.
Financial guarantee contracts: as the expected payments to reimburse the holder less any amounts that the bank expects to recover.
ECLs are recognised using the net impairment losses on financial assets line items in the income statement. In the case of debt instruments measured at fair value through other comprehensive income, the measurement of ECLs is based on the three-stage approach as applied to financial assets at amortised cost. The bank recognises the impairment charge in the income statement, with the corresponding amount recognised in other comprehensive income, with no reduction in the carrying amount of the asset in the balance sheet.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfFinancialAssetsExplanatory", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i1947": { "value": "The bank\u2019s derivative instruments used to manage interest rate and currency risk are recognised on a trade-date basis at fair value as derivative either on the asset or on the liability side of the balance sheet. The goal is to achieve stability of the annual result, in particular the interest result and to manage the unrealised gains and losses. BNG applies micro hedge accounting in accordance with IFRS 9 and portfolio hedging in accordance with IAS 39 when the conditions set out by the standard are met. Hedge accounting is based on a clearly documented relationship between the hedged item and the hedging instrument. When there is a high (negative) correlation between the hedging instrument on the one hand and the value change of the hedged item or the cash flows generated by the hedged item on the other hand, the hedge is regarded as effective. The hedging relationship is documented at the time that the hedge transaction is entered into. The hedging relationship is then continually tested in order to assess whether it meets the hedge accounting requirements.
In principle, BNG only uses derivatives as hedging instruments. They are mandatorily measured at fair value in the balance sheet. The counterpart in the hedging relationship is the hedged item, which is generally recognised at amortised cost. Insofar as the hedge accounting relationship is effective, hedge accounting enables the bank to neutralise the difference in measurement and result recognition between the hedging instruments and the hedged items. BNG applies both fair value and cash flow hedge accounting.
BNG applies two types of fair value hedge accounting: micro hedge accounting and portfolio hedge accounting.
When a derivative is designated as the hedging instrument in a hedging relationship, the changes in the fair value of the derivative are recognised immediately in the income statement together with changes in the fair value of the hedged item that are attributable to the hedged risk. Sometimes, a derivative may be a component of a hybrid financial instrument that includes both the derivative and a host contract. Such embedded derivative instruments are part of a structured financing transaction that is hedged against changes in fair value by means of matching swap contracts. In such cases, both the hedged item and the hedging derivative instrument are recognised at fair value with changes in fair value in the statement of comprehensive income or as a value adjustment of the hedged item. Currently the bank\u2019s fair value hedges mainly relate to swapping fixed to floating rate transactions. The balance sheet items financial assets measured at fair value through other comprehensive income, financial assets measured at amortised cost, funds entrusted and debt securities are involved.
If the hedging instrument expires or is sold, terminated or exercised, or when the hedge no longer meets the criteria for hedge accounting, or BNG decides to voluntarily discontinue the hedging relationship, the hedge relationship is discontinued prospectively. If the relationship does not meet the hedge effectiveness criteria, BNG discontinues hedge accounting from the last date on which compliance with hedge effectiveness was demonstrated.
Portfolio hedge accounting concerns a group of transactions in euros that are hedged for interest rate risk using a portfolio of derivatives. BNG applies portfolio hedge accounting to the majority of long-term fixed rate loans and a limited number of fixed rate securities. There is no direct relationship between individual hedged items and hedging instruments, but it is shown at the portfolio level that the derivatives involved offset the value changes in the related assets arising from interest rate movements.
Due to the lack of a direct relationship between the assets and the derivatives used for hedging, the value adjustments of the hedged interest rate risk are recognised in the Value adjustments on loans in portfolio hedge accounting balance sheet item.
When a derivative is designated as the hedging instrument in a cash flow hedge relationship, the effective portion of changes in the fair value of the derivative is recognised directly in other comprehensive income and presented in the cash flow hedging reserve within equity. Any ineffective portion of changes in the fair value of the derivative is recognised immediately in the income statement.
The amount recognised in the cash flow hedge reserve is reclassified to the income statement as a reclassification adjustment in the same period as the hedged cash flows affect the income statement. BNG applies cash flow hedge accounting on floating foreign currency transactions and the credit spread of fixed foreign currency transactions. The balance sheet line items Funds entrusted and Debt securities are involved. If the hedge accounting relationship is terminated, the accumulated fair value hedge adjustment is amortised over the remaining term of the financial instrument. If the hedged item is derecognised, the unamortised fair value adjustment is recognised immediately in the income statement.
Following the adoption of IFRS 9 the forward component of a hedging instrument is no longer part of the hedge relationship. The foreign currency basis spread of a cross-currency interest rate swap is accounted for the same way as the forward element of a forward contract. The change in the foreign currency basis spread of this derivative that relates to the hedged item is recognised in the cost of hedging reserve within equity. The amount accumulated in the cost of hedging reserve is reclassified to the income statement at the same time as the hedged item affects the income statement.
The hedge accounting relationship is discontinued when it no longer meets the conditions for hedge accounting, or when the hedged item or hedging instrument is sold or matures. The difference between the preceding balance sheet value and the amortised cost of the hedged item is amortised over the remaining period of the hedged item, to the extent that it is retained on the balance sheet. If all or part of a hedged item is sold or purchased, the relevant portion of the cumulative fair value changes is taken into account in the income statement when determining the result on sales.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsAndHedgingExplanatory", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i1948": { "value": "The bank\u2019s derivative instruments used to manage interest rate and currency risk are recognised on a trade-date basis at fair value as derivative either on the asset or on the liability side of the balance sheet. The goal is to achieve stability of the annual result, in particular the interest result and to manage the unrealised gains and losses. BNG applies micro hedge accounting in accordance with IFRS 9 and portfolio hedging in accordance with IAS 39 when the conditions set out by the standard are met. Hedge accounting is based on a clearly documented relationship between the hedged item and the hedging instrument. When there is a high (negative) correlation between the hedging instrument on the one hand and the value change of the hedged item or the cash flows generated by the hedged item on the other hand, the hedge is regarded as effective. The hedging relationship is documented at the time that the hedge transaction is entered into. The hedging relationship is then continually tested in order to assess whether it meets the hedge accounting requirements.
In principle, BNG only uses derivatives as hedging instruments. They are mandatorily measured at fair value in the balance sheet. The counterpart in the hedging relationship is the hedged item, which is generally recognised at amortised cost. Insofar as the hedge accounting relationship is effective, hedge accounting enables the bank to neutralise the difference in measurement and result recognition between the hedging instruments and the hedged items. BNG applies both fair value and cash flow hedge accounting.
BNG applies two types of fair value hedge accounting: micro hedge accounting and portfolio hedge accounting.
When a derivative is designated as the hedging instrument in a hedging relationship, the changes in the fair value of the derivative are recognised immediately in the income statement together with changes in the fair value of the hedged item that are attributable to the hedged risk. Sometimes, a derivative may be a component of a hybrid financial instrument that includes both the derivative and a host contract. Such embedded derivative instruments are part of a structured financing transaction that is hedged against changes in fair value by means of matching swap contracts. In such cases, both the hedged item and the hedging derivative instrument are recognised at fair value with changes in fair value in the statement of comprehensive income or as a value adjustment of the hedged item. Currently the bank\u2019s fair value hedges mainly relate to swapping fixed to floating rate transactions. The balance sheet items financial assets measured at fair value through other comprehensive income, financial assets measured at amortised cost, funds entrusted and debt securities are involved.
If the hedging instrument expires or is sold, terminated or exercised, or when the hedge no longer meets the criteria for hedge accounting, or BNG decides to voluntarily discontinue the hedging relationship, the hedge relationship is discontinued prospectively. If the relationship does not meet the hedge effectiveness criteria, BNG discontinues hedge accounting from the last date on which compliance with hedge effectiveness was demonstrated.
Portfolio hedge accounting concerns a group of transactions in euros that are hedged for interest rate risk using a portfolio of derivatives. BNG applies portfolio hedge accounting to the majority of long-term fixed rate loans and a limited number of fixed rate securities. There is no direct relationship between individual hedged items and hedging instruments, but it is shown at the portfolio level that the derivatives involved offset the value changes in the related assets arising from interest rate movements.
Due to the lack of a direct relationship between the assets and the derivatives used for hedging, the value adjustments of the hedged interest rate risk are recognised in the Value adjustments on loans in portfolio hedge accounting balance sheet item.
When a derivative is designated as the hedging instrument in a cash flow hedge relationship, the effective portion of changes in the fair value of the derivative is recognised directly in other comprehensive income and presented in the cash flow hedging reserve within equity. Any ineffective portion of changes in the fair value of the derivative is recognised immediately in the income statement.
The amount recognised in the cash flow hedge reserve is reclassified to the income statement as a reclassification adjustment in the same period as the hedged cash flows affect the income statement. BNG applies cash flow hedge accounting on floating foreign currency transactions and the credit spread of fixed foreign currency transactions. The balance sheet line items Funds entrusted and Debt securities are involved. If the hedge accounting relationship is terminated, the accumulated fair value hedge adjustment is amortised over the remaining term of the financial instrument. If the hedged item is derecognised, the unamortised fair value adjustment is recognised immediately in the income statement.
Following the adoption of IFRS 9 the forward component of a hedging instrument is no longer part of the hedge relationship. The foreign currency basis spread of a cross-currency interest rate swap is accounted for the same way as the forward element of a forward contract. The change in the foreign currency basis spread of this derivative that relates to the hedged item is recognised in the cost of hedging reserve within equity. The amount accumulated in the cost of hedging reserve is reclassified to the income statement at the same time as the hedged item affects the income statement.
The hedge accounting relationship is discontinued when it no longer meets the conditions for hedge accounting, or when the hedged item or hedging instrument is sold or matures. The difference between the preceding balance sheet value and the amortised cost of the hedged item is amortised over the remaining period of the hedged item, to the extent that it is retained on the balance sheet. If all or part of a hedged item is sold or purchased, the relevant portion of the cumulative fair value changes is taken into account in the income statement when determining the result on sales.
This balance sheet item includes value adjustments resulting from the fair value portfolio hedge accounting. This refers to the effective portion of movements in market value resulting from hedging the interest rate risk in financial assets at the portfolio level. The value adjustments recognised are amortised over the maturity period of the hedged financial assets in the income statement.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForHedgingExplanatory", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i1950": { "value": "Derivative financial instruments are contracts whose value is derived from one or more underlying prices, indexes or other variables, and typically comprise instruments such as swaps, forward rate agreements, futures and options. From initial recognition, derivatives are in principle carried at fair value and classified as held for trading. The carrying value of a derivative is remeasured at fair value throughout the life of the contract and any fair value movements are recognised under the Result on financial transactions item in the income statement. Derivatives are included under assets if they have a net positive fair value or under liabilities for a net negative fair value, with the exception of derivative transactions entered under a central clearing house. For these derivatives, netting takes place of the fair value of all derivatives with a financial counterparty that acts as an intermediary between the bank and the central clearing house. If the derivative transactions are entered under a central clearing house and are also part of a Settle to Market (STM) derivative contract the derivative position is also netted with the collateral posted/received.
Derivatives embedded in financial liabilities are classified and valued separately if all of the following conditions have been met:
there is no close relationship between the economic characteristics and risks of the embedded derivative on the one hand and those of the financial instrument;
the financial instrument is not carried at fair value, with value movements recognised through the income statement; and
a separate derivative instrument on the same terms would match the definition of a derivative.
Derivatives that meet these conditions are recognised in the Derivatives balance sheet item and carried at fair value. Contracts are only reassessed if there is a change in the contractual terms which materially affects the expected cash flows.
Derivatives that do not meet the conditions to be separated are included in the balance sheet item where the financial instrument is recognised. This usually concerns options relating to early redemption. The measurement of these derivatives follows the measurement of the financial instrument. If this is the amortised cost, the option is in principle measured at zero. In all other cases, the option is measured at fair value.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i1954": { "value": "The fair value is the price (not adjusted for transaction costs) which, regardless of the company\u2019s intention or capability, would be received if a financial asset was sold, or the price that would be paid if a financial liability was transferred in an orderly transaction between market participants as at the measurement date under the current market conditions. The starting point is that the valuation must be viewed from the perspective of market parties, for which only the specific characteristics and limitations of the financial instrument may be taken into consideration. Fair value is based on quoted market prices in active markets or, if unavailable, on modelled valuation techniques.
Valuation techniques are generally used to determine the fair value of unlisted assets and liabilities and over-the-counter (OTC) derivatives. This concerns generally accepted techniques and methods such as option pricing models, discounted cash flows, forward pricing and credit and liquidity spreads. Contractual conditions are taken into account and available objective market data are used, such as market-based yield curves for discounting, correlations, volatilities, cross-currency basis spreads, credit spreads, valuation adjustments and other factors, estimates and assumptions which market parties would use to determine the price. Fair value Level 3 valuations are based in part on assumptions that are not observable in the market. For a detailed description of how the fair value measurement is determined, please refer to section 'Fair value of financial instruments' in the consolidated financial statements.
Borrowings (including repurchase transactions) and debt securities are carried in the balance sheet at amortised cost unless the liabilities are measured at fair value through the income statement. As regards transactions in Debt securities and Funds entrusted that are involved in a micro fair value hedge accounting relationship, the amortised cost is adjusted for the effective portion of the movements in fair value arising from interest rate risk. Any repurchased obligations are removed from the balance sheet, and the difference between the carrying amount and the transaction value is recognised in the income statement.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBorrowingsExplanatory", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i1957": { "value": "Borrowings (including repurchase transactions) and debt securities are carried in the balance sheet at amortised cost unless the liabilities are measured at fair value through the income statement. As regards transactions in Debt securities and Funds entrusted that are involved in a micro fair value hedge accounting relationship, the amortised cost is adjusted for the effective portion of the movements in fair value arising from interest rate risk. Any repurchased obligations are removed from the balance sheet, and the difference between the carrying amount and the transaction value is recognised in the income statement.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForCollateralExplanatory", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i1959": { "value": "Joint ventures are stated according to the equity method. Joint ventures are collaborations in which BNG and other parties with joint control over the contractual agreements have contractual entitlements to the net assets. These contractual agreements are structured by means of separate legal entities. The joint control of the arrangement is contractually agreed and only exists if the relevant activities under the arrangement require the unanimous consent of the parties sharing control. For a description of the bank\u2019s Joint ventures, please refer to section 'Joint ventures' of this document.
This item includes the results from joint ventures, valued in accordance with the equity method. Dividend payments are recognised in the income statement when they are received.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentsInJointVentures", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i1981": { "value": "All property and equipment owned by the bank is valued at cost less accumulated depreciation. Property relates to land, buildings and technical installations. Equipment relates to office machinery, inventory, furniture, hardware, software and artworks. Right-of-use asset are presented under property and equipment and represents the right to use the underlying leased asset.
The depreciation period is determined on the basis of the estimated useful life of the assets (see note 11 to the consolidated financial statements). The estimated useful life and residual value are reviewed annually. Depreciation is calculated on a straight-line basis and charged to the income statement. The right-of-use assets are depreciated over the lease term on a straight-line basis. Land and buildings under construction are not depreciated.
Estimated useful life | \u00a0 |
|---|---|
Buildings | 30 years |
Technical installations | 15 years |
Machinery and inventory | 5 years |
Right-of-use asset | 1-5 years |
Hardware and software | 3 years |
Please refer to the Property and equipment section.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDepreciationExpenseExplanatory", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i1982": { "value": "All property and equipment owned by the bank is valued at cost less accumulated depreciation. Property relates to land, buildings and technical installations. Equipment relates to office machinery, inventory, furniture, hardware, software and artworks. Right-of-use asset are presented under property and equipment and represents the right to use the underlying leased asset.
The depreciation period is determined on the basis of the estimated useful life of the assets (see note 11 to the consolidated financial statements). The estimated useful life and residual value are reviewed annually. Depreciation is calculated on a straight-line basis and charged to the income statement. The right-of-use assets are depreciated over the lease term on a straight-line basis. Land and buildings under construction are not depreciated.
Estimated useful life | \u00a0 |
|---|---|
Buildings | 30 years |
Technical installations | 15 years |
Machinery and inventory | 5 years |
Right-of-use asset | 1-5 years |
Hardware and software | 3 years |
The carrying amount of BNG\u2019s non-financial assets (property and equipment, investments in joint ventures), with the exception of deferred tax assets, is assessed when there is an objective indication of impairment. To determine impairments, an estimate is made of the realisable value and individual assets are divided into groups at the lowest level at which future cash flows can be identified (cash flow generating units). BNG has not recognised any goodwill. The realisable value of an asset or cash flow generating unit is equal to the higher of the value in use and the fair value minus selling costs.
In determining the value in use, the present value of the estimated future cash flows is calculated using a discount rate before tax which reflects both the current market appraisals of the time value of money and the specific risks relating to the asset. Impairments recognised in respect of cash flow generating units are first offset against the carrying amount of any goodwill allocated to the units and subsequently offset pro rata against the carrying amount of the other assets of the unit (or group of units). Non-financial assets which were subject to impairment are reassessed at each balance sheet date. Impairment of a non-financial asset, with the exception of goodwill included in non-financial assets, is reversed through the income statement (Impairments item) if it is possible to establish reliably that the negative effects of the indication for the impairment recognised earlier are mitigated. An impairment is only reversed to the extent that the carrying amount of the asset does not exceed the carrying amount minus depreciation or amortisation, which would have been determined if no impairment had been recognised.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfNonfinancialAssetsExplanatory", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i1984": { "value": "A provision is recognised when there is a current liability, outflow of resources is more probable than not, and reliable estimate can be made. More specific for a restructuring provisions: there is a detailed formal plan for a reorganisation (without possibility of withdrawal), when it is expected that this impacts employees and when there is a reliable estimate of the outflow of resources, in this case employee termination benefits.
Other employee benefits are classified as defined benefit plans for which separate provisions have been formed. These other employee benefits include the future costs of interest rate discounts on mortgage loans for the benefit of both active and retired BNG employees.
The level of the provision is determined on the basis of calculations using the Projected Unit Credit Method (PUCM). The provision associated with the mortgage interest rate discount is stated under the provisions balance sheet item. The costs relating to the employee benefits are recognised as staff costs in the income statement. This item also includes a provision for a vitality leave scheme. Under this scheme, active employees with seven or more years of service can take two consecutive months of leave once every seven years while retaining part of their monthly income. The vitality leave scheme is recognised as a defined benefit plan and the costs are recognised as staff costs in the income statement.
The bank classifies its multi-employer pension plan as a defined contribution plan. Under this plan, the members bear almost all of the actuarial and investment risks, while the employer members of the plan are under no obligation to make any supplementary contributions if a deficit occurs in the fund. The obligation consists of payment of the contribution determined by the pension fund. The pension fund determines the contribution each year based on the information contained in its own dataset, taking account of the parameters and requirements specified by the regulatory authority. The obligation to pay a contribution takes effect upon becoming a pension fund member in the relevant year, and not from membership in previous years. The employer\u2019s share of the pension contribution and any supplementary amounts are charged to the result in the year to which the contribution relates.
Other employee benefits are classified as defined benefit plans for which separate provisions have been formed. These other employee benefits include the future costs of interest rate discounts on mortgage loans for the benefit of both active and retired BNG employees.
The level of the provision is determined on the basis of calculations using the Projected Unit Credit Method (PUCM). The provision associated with the mortgage interest rate discount is stated under the provisions balance sheet item. The costs relating to the employee benefits are recognised as staff costs in the income statement. This item also includes a provision for a vitality leave scheme. Under this scheme, active employees with seven or more years of service can take two consecutive months of leave once every seven years while retaining part of their monthly income. The vitality leave scheme is recognised as a defined benefit plan and the costs are recognised as staff costs in the income statement.
The nominal tax amount is calculated on the basis of the statutory nominal tax rates and the tax legislation in force. Tax rate adjustments relating to previous years, participation exemptions and non-deductible costs are also applied when determining the effective tax amount in the income statement. Group companies that form part of the fiscal unit use the applicable nominal tax rate.
Deferred tax assets and deferred tax liabilities are both carried at nominal value. All deferred tax assets and liabilities are stated in the accounts of the parent company of the fiscal unit. Deferred tax assets and liabilities are recognised as temporary differences between the carrying amounts on the one hand and the tax bases of assets and liabilities on the other. The bank has registered deferred tax assets and liabilities for the actuarial results for the employee benefits provision, for the revaluation reserve, for own credit adjustments and for the cash flow hedge reserve.
These deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the periods in which they are expected to be realised. Differences in deferred tax assets and liabilities resulting from a change in tax rates are recognised in the income statement. Deferred tax assets are recognised only to the extent to which taxable profits are expected to be available in the near future to compensate for these temporary differences. Tax assets and liabilities, both current and deferred separately, are netted if they concern the same tax authority and the same type of tax and if netting of these assets and liabilities is permitted by law.
The bank does not expect a top-up tax because the effective tax rate is above the minimum tax rate. BNG does not have any operations in other countries.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDeferredIncomeTaxExplanatory", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i1989": { "value": "The nominal tax amount is calculated on the basis of the statutory nominal tax rates and the tax legislation in force. Tax rate adjustments relating to previous years, participation exemptions and non-deductible costs are also applied when determining the effective tax amount in the income statement. Group companies that form part of the fiscal unit use the applicable nominal tax rate.
Deferred tax assets and deferred tax liabilities are both carried at nominal value. All deferred tax assets and liabilities are stated in the accounts of the parent company of the fiscal unit. Deferred tax assets and liabilities are recognised as temporary differences between the carrying amounts on the one hand and the tax bases of assets and liabilities on the other. The bank has registered deferred tax assets and liabilities for the actuarial results for the employee benefits provision, for the revaluation reserve, for own credit adjustments and for the cash flow hedge reserve.
These deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the periods in which they are expected to be realised. Differences in deferred tax assets and liabilities resulting from a change in tax rates are recognised in the income statement. Deferred tax assets are recognised only to the extent to which taxable profits are expected to be available in the near future to compensate for these temporary differences. Tax assets and liabilities, both current and deferred separately, are netted if they concern the same tax authority and the same type of tax and if netting of these assets and liabilities is permitted by law.
The bank does not expect a top-up tax because the effective tax rate is above the minimum tax rate. BNG does not have any operations in other countries.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIncomeTaxExplanatory", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i1990": { "value": "The balance sheet is drawn up before profit appropriation. This means that the total net result for the financial year is presented in equity. The revaluation reserve for financial assets at fair value through other comprehensive income and the cash flow hedge reserve are adjusted by recognising a deferred tax liability.
Additional Tier 1 capital concerns perpetual loans involving an annual non-cumulative discretionary payment on the outstanding principal amount, subject to temporary write-down in the event that the CET1 ratio falls below 5.125%. In case of write-down, this amount will be transferred to the Retained earnings. Write-down from the Retained earnings can be reversed (write-up) under certain conditions at the moment that the trigger ratio is back above 5.125% again. BNG is entitled to distribute the interest payment on a discretionary basis in the form of a compensation charged to the Retained earnings. The compensation is determined on the basis of the prevailing principal amount.
BNG has the unilateral contractual option to call the Additional Tier 1 capital issued. As from May 2022, the tranches issued in 2016 (a nominal amount of EUR 309 million) can be redeemed every year in May.
Equity includes a revaluation reserve in which the unrealised changes in fair value of Financial assets at fair value through other comprehensive income, net of tax, are recognised. In the event of a sale of a financial instrument, the cumulative revaluation is recognised in Results on financial transactions. The effective portion of fair value changes in transactions involved in hedge accounting is either credited or charged to the income statement during the period in which the transactions are involved in a hedge accounting relationship.
Financial liabilities at fair value through the income statement are recognised at the relevant funding curve, including the spread for own credit risk. The bank recognises the amount related to changes in fair value attributable to change in credit risk of financial liabilities designated at fair value through the income statement as Own credit adjustment (net of deferred tax assets and liabilities) in Other Comprehensive income within equity.
Under IFRS 9, the foreign currency basis spread of a hedging instrument is no longer part of a hedge relationship. The cost of hedging reserve records movements in foreign currency basis spreads in cross-currency (interest rate) swaps involved in hedge accounting. The amount accumulated in the cost of hedging reserve is reclassified to the income statement at the same time as the hedged item affects the income statement.
Furthermore, equity includes a cash flow hedge reserve, in which the effective portion of the unrealised changes in the fair value of derivatives in cash flow hedge accounting, net of taxes, resulting from changes in the foreign exchange rates and the credit spread component is recognised. The ineffective portion of the hedged risk for cash flow hedge accounting is recognised under Results on financial transactions.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIssuedCapitalExplanatory", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i1991": { "value": "Interest revenue and Interest expenses for all interest-bearing instruments included in the balance sheet are calculated on the basis of the effective interest rate. This method is used for calculating the amortised cost of a financial asset or a financial liability and for allocating the interest income or interest expense to the relevant period. Interest income is calculated by applying the effective interest rate to the gross carrying amount of a financial asset except for financial assets that subsequently become credit-impaired. For credit impaired financial assets, the effective interest rate is applied to the net carrying amount of the financial asset (after deduction of the loss allowance). If a transaction measured at amortised cost is sold, the difference between the carrying amount and the net proceeds of the sale is recognised under Interest result.
In this item, the commission and fees paid or received are recognised in the period in which the services were provided.
The European resolution regime is based on the EU Bank Recovery and Resolution Directive (BRRD). The full amount payable will be charged to the income statement in the month of payment. The annual contribution to the European resolution fund is recognised in the income statement under the item Contribution to resolution fund.
In accordance with the Banking Tax Act, banks are required to pay a bank levy in October each year. The full amount payable will be charged to the income statement in the month of payment. The annual levy is recognised in the income statement under the item Bank levy.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForExpensesExplanatory", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i1992": { "value": "Interest revenue and Interest expenses for all interest-bearing instruments included in the balance sheet are calculated on the basis of the effective interest rate. This method is used for calculating the amortised cost of a financial asset or a financial liability and for allocating the interest income or interest expense to the relevant period. Interest income is calculated by applying the effective interest rate to the gross carrying amount of a financial asset except for financial assets that subsequently become credit-impaired. For credit impaired financial assets, the effective interest rate is applied to the net carrying amount of the financial asset (after deduction of the loss allowance). If a transaction measured at amortised cost is sold, the difference between the carrying amount and the net proceeds of the sale is recognised under Interest result.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInterestIncomeAndExpenseExplanatory", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i1995": { "value": "In this item, the commission and fees paid or received are recognised in the period in which the services were provided.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFeeAndCommissionIncomeAndExpenseExplanatory", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i1996": { "value": "This item comprises unrealised market value changes in:
all financial instruments due to foreign exchange rate fluctuations;
derivatives measured at fair value, including market value changes due to the counterparty credit risk (Credit Valuation Adjustment) and due to own credit risk (Debit Valuation Adjustment) for derivative transactions without a daily or limited exchange of collateral;
financial instruments measured at fair value, with changes in fair value recognised through the income statement;
effective portions of the hedged interest rate risk in financial assets and liabilities involved in a fair value hedge accounting relationship;
the amortisation of the balance sheet item Value adjustments on loans in portfolio hedge accounting; and
the ineffective portion of the hedged risk for cash flow hedge accounting.
This item also includes sales and buy-out results for financial instruments measured at fair value. These realised results consist of the difference between the net proceeds of the sale and the carrying amount, including the release of value movements accumulated in equity. Returns from the participating interests (equity instruments) measured at fair value are also recognised under this item. Finally, differences between the fair value on initial recognition and the transaction price regarding to level 1 and 2 financial instruments measured at fair value are also included.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForRecognisingDifferenceBetweenFairValueAtInitialRecognitionAndAmountDeterminedUsingValuationTechniqueExplanatory", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i1997": { "value": "This item includes the results from joint ventures, valued in accordance with the equity method. Dividend payments are recognised in the income statement when they are received.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDividendsExplanatory", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i2002": { "value": "The consolidated cash flow statement has been drawn up in accordance with the indirect method. The cash flows are categorised as cash flows from operating, investing and financing activities. Cash and cash equivalents include cash at hand, the available balances with banks and central banks and overnight interbank loans. These funds have less than three months\u2019 maturity from the date of acquisition, are readily convertible into a known amount of cash and are subject to a negligible risk of changes in value. The changes in loans and advances, funds entrusted, derivatives, cash collateral posted and received, and amounts due from and due to banks are included in the cash flow from operating activities. Investing activities comprise purchases, sales and redemptions in the investment portfolio, purchases and sales of joint ventures as well as property and equipment. Drawdowns and repayments of subordinated debt and bond loans, as well as the dividend paid, are presented as financing activities.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForCashFlowsExplanatory", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i2003": { "value": "The consolidated cash flow statement has been drawn up in accordance with the indirect method. The cash flows are categorised as cash flows from operating, investing and financing activities. Cash and cash equivalents include cash at hand, the available balances with banks and central banks and overnight interbank loans. These funds have less than three months\u2019 maturity from the date of acquisition, are readily convertible into a known amount of cash and are subject to a negligible risk of changes in value. The changes in loans and advances, funds entrusted, derivatives, cash collateral posted and received, and amounts due from and due to banks are included in the cash flow from operating activities. Investing activities comprise purchases, sales and redemptions in the investment portfolio, purchases and sales of joint ventures as well as property and equipment. Drawdowns and repayments of subordinated debt and bond loans, as well as the dividend paid, are presented as financing activities.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyToDetermineComponentsOfCashAndCashEquivalents", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i2025": { "value": "| \u00a0 | 31-12-2025 | 31-12-2024 |
|---|---|---|
Cash on hand | 0 | 0 |
Current account balances with the central bank (due on demand) | 1,831 | 6,625 |
Total | 1,831 | 6,625 |
The amounts due from banks item includes all receivables from banks measured at amortised cost.
| \u00a0 | 31-12-2025 | 31-12-2024 |
|---|---|---|
Short-term loans and current account balances | 2 | 2 |
Long-term lending | 702 | 800 |
Repos | 0 | 2 |
Total | 704 | 804 |
We refer to section 'Credit Risk' for a detailed overview of repos under netting conditions.
", "dimensions": { "concept": "ifrs-full:DisclosureOfDepositsFromBanksExplanatory", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i2051": { "value": "The cash collateral amounts of EUR 3,721 million (2024: EUR 3,545 million) is posted with third parties under credit support annexes in netting agreements and as such is not freely available to BNG.
The cash collateral at year-end 2025 of EUR 710 million (2024: EUR 1,533 million) is received from third parties under credit support annexes as opposed to netting agreements and as such is not freely available to BNG.
A part of the financial assets and liabilities is encumbered because these assets serve to secure and act as collateral for money market transactions and lending transactions. The following table shows the nominal sheet values and the collateral values.
| \u00a0 | 31-12-2025 | 31-12-2024 | ||
|---|---|---|---|---|
| \u00a0 | Nominal value | Collateral value | Nominal value | Collateral value |
Type of collateral | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Collateral pledged to the central bank | 52,229 | 33,785 | 52,968 | 34,208 |
Securities provided in derivatives transactions | 3,546 | 3,546 | 3,941 | 3,941 |
Cash deposited in relation to derivatives transactions | 3,585 | 3,590 | 3,473 | 3,470 |
Given as collateral | 59,360 | 40,921 | 60,382 | 41,619 |
Securities received in derivatives transactions | - | - | - | - |
Cash received in relation to derivatives transactions | 688 | 689 | 1,506 | 1,510 |
Received as collateral | 688 | 689 | 1,506 | 1,510 |
Total | 58,672 | 40,232 | 58,876 | 40,109 |
Of the total value of loans provided as collateral to the central bank, only a part has actually been used as collateral. At year-end 2025, the value of the collateral in use under the guarantee for clients\u2019 collection files amounted to EUR 2,306 million (year-end 2024: EUR 2,422 million).
", "dimensions": { "concept": "ifrs-full:DisclosureOfCollateralExplanatory", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i2084": { "value": "This item includes:
Financial assets mandatorily measured at fair value through the income statement. This concerns financial assets that have failed to pass the SPPI test; and
Financial assets designated as measured at fair value through the income statement.
| \u00a0 | 31-12-2025 | 31-12-2024 |
|---|---|---|
Mandatorily measured at fair value through the income statement | \u00a0 | \u00a0 |
Loans and advances | 29 | 31 |
Designated as measured at fair value through the income statement | \u00a0 | \u00a0 |
Loans and advances | 174 | 210 |
Interest-bearing securities | 82 | 516 |
Total | 285 | 757 |
The total redemption value of these loans and advances and interest-bearing securities at year-end 2025 is EUR 285 million (2024: EUR 757 million). The interest-bearing securities decreased due to sale of the Inflation-Linked Bond portfolio.
This item includes debt securities and deposits designated as measured at fair value with changes in fair value recognised through the income statement.
| \u00a0 | 31-12-2025 | 31-12-2024 |
|---|---|---|
Debt securities | 225 | 238 |
Deposits | 7 | 16 |
Total | 232 | 254 |
The total redemption value of these debt securities and deposits at year-end 2025 is EUR 213 million (2024: EUR 219 million). The difference between the financial liability's carrying amount and the redemption value at year-end 2025 is EUR 19 million (2024: EUR 35 million). Financial liabilities are measured at fair value through the income statement on the relevant funding curve including a mark-up for own credit risk. The total change in value (before tax) was EUR 8 million positive (2024: EUR 12 million positive). Changes in fair value due to own credit risk are recognised through other comprehensive income. These changes are determined by comparing the valuation using the relevant funding curve including a mark-up for own credit risk and the valuation using the relevant funding curve without this mark-up.
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialInstrumentsAtFairValueThroughProfitOrLossExplanatory", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i2113": { "value": "This balance sheet item includes the derivatives with a positive fair value.
| \u00a0 | 31-12-2025 | 31-12-2024 |
|---|---|---|
Derivatives not involved in a hedge accounting relationship | 32 | 476 |
Derivatives involved in a portfolio hedge accounting relationship | 1,340 | 1,195 |
Derivatives involved in a micro hedge accounting relationship | 759 | 2,259 |
Receivables related to STM derivative contracts | 7 | 49 |
Total | 2,138 | 3,979 |
This balance sheet item includes the derivatives with a negative fair value.
| \u00a0 | 31-12-2025 | 31-12-2024 |
|---|---|---|
Derivatives not involved in a hedge accounting relationship | 45 | 279 |
Payables related to STM derivative contracts | 14 | - |
Derivatives involved in a portfolio hedge accounting relationship | 1,764 | 3,698 |
Derivatives involved in a micro hedge accounting relationship | 3,186 | 1,569 |
Total | 5,009 | 5,546 |
This includes purchased interest-bearing securities that are held within the Hold-to-Collect and Sell business model and for which the bank has not used the fair value option.
| \u00a0 | 31-12-2025 | 31-12-2024 |
|---|---|---|
Governments | 5,577 | 5,478 |
Supranational organisations | 2,148 | 2,556 |
Credit institutions | 4,070 | 2,908 |
Other institutions | - | 380 |
Total | 11,795 | 11,322 |
At year-end 2025, BNG had transferred EUR 321 million (2024: EUR 325 million) financial assets at fair value through other comprehensive income in repurchase transactions without derecognition.
This includes purchased interest-bearing securities that are held within the Hold-to-Collect business model and for which the bank has not used the fair value option.
| \u00a0 | 31-12-2025 | 31-12-2024 |
|---|---|---|
Governments | 1,282 | 1,299 |
Supranational organisations | 1,983 | 2,443 |
Credit institutions | 3,313 | 4,145 |
Non-financial corporations | 1,527 | 1,246 |
Allowance for credit losses | -0 | -0 |
Total | 8,105 | 9,133 |
At year-end 2025, BNG had transferred EUR 2,088 million (2024: EUR 2,049 million) interest-bearing securities at amortised cost in repurchase transactions without derecognition.
This includes bonds and other issued debt securities with either fixed or variable interest rates. Any sold portion of an issue is deducted from the relevant bond.
| \u00a0 | 31-12-2025 | 31-12-2024 |
|---|---|---|
Bond loans | 91,984 | 91,844 |
Privately placed debt securities | 1,898 | 1,922 |
Commercial Paper | 498 | 9,617 |
Total | 94,380 | 103,383 |
At year-end 2025, BNG had transferred EUR 321 million (2024: EUR 325 million) financial assets at fair value through other comprehensive income in repurchase transactions without derecognition.
At year-end 2025, BNG had transferred EUR 2,088 million (2024: EUR 2,049 million) interest-bearing securities at amortised cost in repurchase transactions without derecognition.
At year-end 2025 BNG has transferred EUR 2,774 million in interest-bearing securities in repurchase transactions without derecognition (2024: EUR 2,669 million). At year-end 2025, BNG has no financial assets in its portfolio that were transferred and derecognised and in which it has a continuing involvement. Financial assets are not removed from the balance sheet if BNG retains the credit risks and the rights to the underlying cash flows.
", "dimensions": { "concept": "ifrs-full:DisclosureOfRepurchaseAndReverseRepurchaseAgreementsExplanatory", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i2178": { "value": "This includes purchased interest-bearing securities that are held within the Hold-to-Collect business model and for which the bank has not used the fair value option.
| \u00a0 | 31-12-2025 | 31-12-2024 |
|---|---|---|
Governments | 1,282 | 1,299 |
Supranational organisations | 1,983 | 2,443 |
Credit institutions | 3,313 | 4,145 |
Non-financial corporations | 1,527 | 1,246 |
Allowance for credit losses | -0 | -0 |
Total | 8,105 | 9,133 |
At year-end 2025, BNG had transferred EUR 2,088 million (2024: EUR 2,049 million) interest-bearing securities at amortised cost in repurchase transactions without derecognition.
The Loans and advances item includes short-term and long-term loans to clients insofar as they pass the SPPI test, as well as current account debit balances held by clients. All positions are held within the Hold-to-Collect business model.
| \u00a0 | 31-12-2025 | 31-12-2024 |
|---|---|---|
Short-term loans and current account balances | 1,591 | 1,182 |
Long-term lending | 96,134 | 93,412 |
Total loans and advances | 97,725 | 94,594 |
Allowance for credit losses | -98 | -57 |
Total | 97,627 | 94,537 |
At year-end 2025, the collateral value of the portion of the loans and advances contributed as collateral to DNB amounted to EUR 33.8 billion (2024: EUR 32.2 billion).
The following table shows the movements in allowances for expected credit losses for financial assets and the provision for expected credit losses for off-balance sheet commitments.
2025 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|---|---|
| \u00a0 | Opening balance | Increases due to origination and acqui- sition | Decrease due to derecog- nition repayments and disposals | Changes due to change in credit risk (net) | Decrease in allowance account due to write-offs | Closing balance |
Allowances | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Cash and balances held with central banks | - | - | - | - | - | - |
Amounts due from banks | 0 | - | 0 | 0 | - | 0 |
Financial assets at fair value through other comprehensive income | 0 | 0 | 0 | 0 | - | 0 |
Interest-bearing securities at amortised cost | 0 | 0 | 0 | 0 | - | 0 |
Loans and advances | 57 | 13 | -20 | 48 | 0 | 98 |
| \u00a0 | 57 | 13 | -20 | 48 | 0 | 98 |
Provision | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Off-balance sheet commitments | 1 | 0 | -1 | 0 | - | 0 |
2024 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|---|---|
| \u00a0 | Opening balance | Increases due to origination and acqui- sition | Decrease due to derecog- nition repayments and disposals | Changes due to change in credit risk (net) | Decrease in allowance account due to write-offs | Closing balance |
Allowances | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Cash and balances held with central banks | - | - | - | - | - | 0 |
Amounts due from banks | 0 | 0 | 0 | 0 | - | 0 |
Financial assets at fair value through other comprehensive income | 0 | 0 | 0 | 0 | - | 0 |
Interest-bearing securities at amortised cost | 1 | 0 | 0 | -1 | - | 0 |
Loans and advances | 99 | 0 | -25 | 2 | -19 | 57 |
| \u00a0 | 100 | 0 | -25 | 1 | -19 | 57 |
Provision | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Off-balance sheet commitments | 6 | 0 | 0 | -5 | - | 1 |
31-12-2025 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|
| \u00a0 | Actual Balance | Scenario A | Scenario B | Scenario C |
Allowances | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Cash and balances held with central banks | - | - | - | - |
Amounts due from banks | 0 | 0 | 0 | 0 |
Financial assets at fair value through other comprehensive income | 0 | 0 | 0 | 0 |
Interest-bearing securities at amortised cost | 0 | 1 | 1 | 1 |
Loans and advances | 98 | 119 | 109 | 110 |
| \u00a0 | 98 | 120 | 110 | 111 |
Provision | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Off-balance sheet commitments | 0 | 1 | 0 | 0 |
31-12-2024 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|
| \u00a0 | Actual Balance | Scenario A | Scenario B | Scenario C |
Allowances | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Cash and balances held with central banks | - | - | - | - |
Amounts due from banks | 0 | 0 | 0 | 0 |
Financial assets at fair value through other comprehensive income | 0 | 0 | 0 | 0 |
Interest-bearing securities at amortised cost | 0 | 1 | 0 | 1 |
Loans and advances | 57 | 69 | 67 | 62 |
| \u00a0 | 57 | 70 | 67 | 63 |
Provision | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Off-balance sheet commitments | 1 | 2 | 2 | 1 |
The Loans and advances item includes short-term and long-term loans to clients insofar as they pass the SPPI test, as well as current account debit balances held by clients. All positions are held within the Hold-to-Collect business model.
| \u00a0 | 31-12-2025 | 31-12-2024 |
|---|---|---|
Short-term loans and current account balances | 1,591 | 1,182 |
Long-term lending | 96,134 | 93,412 |
Total loans and advances | 97,725 | 94,594 |
Allowance for credit losses | -98 | -57 |
Total | 97,627 | 94,537 |
At year-end 2025, the collateral value of the portion of the loans and advances contributed as collateral to DNB amounted to EUR 33.8 billion (2024: EUR 32.2 billion).
This refers to the value adjustments of the effective portion of the hedged interest rate risk of hedged assets involved in a portfolio hedge accounting relationship.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Movements of value adjustments on loans in portfolio hedge accounting | \u00a0 | \u00a0 |
Opening balance | -2,953 | -5,037 |
Movements in the unrealised portion in the financial year | -8,220 | 1,719 |
Amortisation in the financial year | 461 | 352 |
Movements in the realised portion in the financial year | -1 | 13 |
Closing balance | -10,713 | -2,953 |
| \u00a0 | 31-12-2025 | 31-12-2024 |
|---|---|---|
| \u00a0 | Balance sheet value | |
Joint ventures | \u00a0 | \u00a0 |
Various participations | 5 | 16 |
Total | 5 | 16 |
BNG Gebiedsontwikkeling B.V. is, as a 100% subsidiary, part of the consolidated financial statements. The joint ventures referred to are held by BNG Gebiedsontwikkeling B.V. For summarised financial information on joint ventures, please refer to the 'Joint ventures'-section of the consolidated financial statements.
| \u00a0 | 31-12-2025 | 31-12-2024 |
|---|---|---|
Joint ventures entered into by BNG Gebiedsontwikkeling B.V. | \u00a0 | \u00a0 |
Joint development and allocation of land with public authorities, at own expense and risk. The parties involved in the joint ventures have an equal voting right, which means that no single party has control. | \u00a0 | \u00a0 |
CV Ontwikkelingsmaatschappij Zenkeldamshoek, Goor | 0% | 80% |
Zenkeldamshoek Beheer BV, Goor | 0% | 50% |
Development and allocation of land for industrial estates | \u00a0 | \u00a0 |
Ontwikkelingsmaatschappij 'Het Nieuwe Westland' CV, The Hague | 50% | 50% |
Ontwikkelingsmaatschappij 'Het Nieuwe Westland' BV, The Hague | 50% | 50% |
Development and allocation of land for residential construction | \u00a0 | \u00a0 |
Project Suijssenwaerde CV, The Hague | 0% | 80% |
Project Suijssenwaerde Beheer BV, The Hague | 50% | 50% |
Development and allocation of land for residential construction and recreational housing | \u00a0 | \u00a0 |
CV Bedrijvenpark Oostflakkee, The Hague | 80% | 80% |
Bedrijvenpark Oostflakkee Beheer BV, The Hague | 50% | 50% |
Development and allocation of land for industrial estates | \u00a0 | \u00a0 |
SGN Nieuw Rijsenhout CV, The Hague | 50% | 50% |
SGN Bestaand Rijsenhout Beheer BV, The Hague | 0% | 50% |
SGN Nieuw Rijsenhout Beheer BV, The Hague | 50% | 50% |
Stallingsbedrijf Glastuinbouw Nederland Groep BV, The Hague | 50% | 50% |
Development and allocation of land for glasshouse horticulture locations | \u00a0 | \u00a0 |
Ontwikkelmaatschappij Meerburg CV, Zoeterwoude | 0% | 50% |
Ontwikkelmaatschappij Meerburg Beheer BV, Zoeterwoude | 0% | 50% |
Development and allocation of land for residential construction, sports fields and office buildings | \u00a0 | \u00a0 |
De Jonge Voorn BV, Guisveld (Zaandam) | 0% | 80% |
De Jonge Voorn CV, Guisveld (Zaandam) | 0% | 80% |
Development and allocation of land for residential construction | \u00a0 | \u00a0 |
| \u00a0 | 31-12-2025 | 31-12-2024 |
|---|---|---|
| \u00a0 | Balance sheet value | |
Joint ventures | \u00a0 | \u00a0 |
Various participations | 5 | 16 |
Total | 5 | 16 |
BNG Gebiedsontwikkeling B.V. is, as a 100% subsidiary, part of the consolidated financial statements. The joint ventures referred to are held by BNG Gebiedsontwikkeling B.V. For summarised financial information on joint ventures, please refer to the 'Joint ventures'-section of the consolidated financial statements.
This relates to joint ventures and joint operations entered into by BNG Gebiedsontwikkeling B.V. A list of these parties is provided in a separate note in these financial statements. Transactions with these joint ventures consist of loans and advances, credit balances held in current accounts and off-balance sheet commitments (the undrawn portions of credit facilities).
| \u00a0 | 31-12-2025 | 31-12-2024 |
|---|---|---|
Joint ventures entered into by BNG Gebiedsontwikkeling B.V. | \u00a0 | \u00a0 |
Joint development and allocation of land with public authorities, at own expense and risk. The parties involved in the joint ventures have an equal voting right, which means that no single party has control. | \u00a0 | \u00a0 |
CV Ontwikkelingsmaatschappij Zenkeldamshoek, Goor | 0% | 80% |
Zenkeldamshoek Beheer BV, Goor | 0% | 50% |
Development and allocation of land for industrial estates | \u00a0 | \u00a0 |
Ontwikkelingsmaatschappij 'Het Nieuwe Westland' CV, The Hague | 50% | 50% |
Ontwikkelingsmaatschappij 'Het Nieuwe Westland' BV, The Hague | 50% | 50% |
Development and allocation of land for residential construction | \u00a0 | \u00a0 |
Project Suijssenwaerde CV, The Hague | 0% | 80% |
Project Suijssenwaerde Beheer BV, The Hague | 50% | 50% |
Development and allocation of land for residential construction and recreational housing | \u00a0 | \u00a0 |
CV Bedrijvenpark Oostflakkee, The Hague | 80% | 80% |
Bedrijvenpark Oostflakkee Beheer BV, The Hague | 50% | 50% |
Development and allocation of land for industrial estates | \u00a0 | \u00a0 |
SGN Nieuw Rijsenhout CV, The Hague | 50% | 50% |
SGN Bestaand Rijsenhout Beheer BV, The Hague | 0% | 50% |
SGN Nieuw Rijsenhout Beheer BV, The Hague | 50% | 50% |
Stallingsbedrijf Glastuinbouw Nederland Groep BV, The Hague | 50% | 50% |
Development and allocation of land for glasshouse horticulture locations | \u00a0 | \u00a0 |
Ontwikkelmaatschappij Meerburg CV, Zoeterwoude | 0% | 50% |
Ontwikkelmaatschappij Meerburg Beheer BV, Zoeterwoude | 0% | 50% |
Development and allocation of land for residential construction, sports fields and office buildings | \u00a0 | \u00a0 |
De Jonge Voorn BV, Guisveld (Zaandam) | 0% | 80% |
De Jonge Voorn CV, Guisveld (Zaandam) | 0% | 80% |
Development and allocation of land for residential construction | \u00a0 | \u00a0 |
| \u00a0 | 2025 | 2024 |
|---|---|---|
Joint ventures entered into by BNG Gebiedsontwikkeling B.V. | \u00a0 | \u00a0 |
Balance sheet value of investment (note 10) | 5 | 16 |
Value of the share in: | \u00a0 | \u00a0 |
Total assets | 17 | 34 |
Total liabilities | 12 | 19 |
Income | 2 | 8 |
Result from continued operations | 2 | -1 |
Equity | 5 | 16 |
Comprehensive income | 5 | 16 |
BNG Gebiedsontwikkeling B.V. (a wholly-owned BNG subsidiary) invests in and develops land on its own account in collaboration with local authorities. This collaboration takes the form of a joint venture involving the use of limited partnerships. The risk incurred by BNG is the total amount of capital invested in the participating interest, increased by further future payments obligations and retained profits. At year-end 2025, this risk amounted to EUR 6 million of joint ventures (2024: joint ventures of EUR 16 million), none of this is related to future payment obligations (2024: EUR 0 million).
", "dimensions": { "concept": "ifrs-full:DisclosureOfJointVenturesExplanatory", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i2423": { "value": "| \u00a0 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 |
|---|---|---|---|---|---|---|---|---|
| \u00a0 | Property | Equipment | Right-of-use-asset | Total | ||||
Historical cost | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Opening balance | 13 | 50 | 19 | 29 | 4 | 4 | 36 | 83 |
Investments | 26 | 5 | 0 | 1 | 1 | 0 | 27 | 6 |
Divestment | - | -42 | -13 | -11 | - | - | -13 | -53 |
Value as at 31 December | 39 | 13 | 6 | 19 | 5 | 4 | 50 | 36 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Depreciation | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Accumulated depreciation as at 1 January | - | 40 | 17 | 26 | 2 | 2 | 19 | 68 |
Depreciation during the year | - | 2 | 2 | 2 | 0 | 0 | 2 | 4 |
Divestments depreciation | - | -42 | -13 | -11 | - | - | -13 | -53 |
Accumulated depreciation as at 31 December | - | - | 6 | 17 | 2 | 2 | 8 | 19 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Total | 39 | 13 | 0 | 2 | 3 | 2 | 42 | 17 |
Our office on Koninginnegracht 2 is being renovated. As per November 2023, the office is temporarily moved to another location in The Hague. The expenses of the current renovation are capitalized, resulting in investments of EUR 26 million in property in 2025 (2024: EUR 5 million). The investments will be depreciated once the building is in use.
No property or equipment is pledged as security of liabilities.
", "dimensions": { "concept": "ifrs-full:DisclosureOfPropertyPlantAndEquipmentExplanatory", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i2424": { "value": "The other assets at year-end 2025 of EUR 24 million (2024: EUR 104 million) and comprise amounts receivable from lending to clients and reconciling of prepaid license fees.
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherAssetsExplanatory", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i2425": { "value": "The other assets at year-end 2025 of EUR 24 million (2024: EUR 104 million) and comprise amounts receivable from lending to clients and reconciling of prepaid license fees.
", "dimensions": { "concept": "ifrs-full:DisclosureOfPrepaymentsAndOtherAssetsExplanatory", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i2454": { "value": "| \u00a0 | 31-12-2025 | 31-12-2024 |
|---|---|---|
Current account balances | 0 | 0 |
Deposits | 420 | 917 |
Private loans | 683 | 722 |
Repos | 1 | - |
Total | 1,104 | 1,639 |
This item includes debt securities and deposits designated as measured at fair value with changes in fair value recognised through the income statement.
| \u00a0 | 31-12-2025 | 31-12-2024 |
|---|---|---|
Debt securities | 225 | 238 |
Deposits | 7 | 16 |
Total | 232 | 254 |
The total redemption value of these debt securities and deposits at year-end 2025 is EUR 213 million (2024: EUR 219 million). The difference between the financial liability's carrying amount and the redemption value at year-end 2025 is EUR 19 million (2024: EUR 35 million). Financial liabilities are measured at fair value through the income statement on the relevant funding curve including a mark-up for own credit risk. The total change in value (before tax) was EUR 8 million positive (2024: EUR 12 million positive). Changes in fair value due to own credit risk are recognised through other comprehensive income. These changes are determined by comparing the valuation using the relevant funding curve including a mark-up for own credit risk and the valuation using the relevant funding curve without this mark-up.
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinancialInstrumentsDesignatedAtFairValueThroughProfitOrLossExplanatory", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i2556": { "value": "| \u00a0 | 31-12-2025 | 31-12-2024 |
|---|---|---|
Current account balances | 3,415 | 3,857 |
Short-term deposits | 1,790 | 2,331 |
Long-term deposits | 3,811 | 4,329 |
Total | 9,016 | 10,517 |
| \u00a0 | 31-12-2025 | 31-12-2024 |
|---|---|---|
Subordinated debt | 21 | 19 |
Total | 21 | 19 |
The bank has registered deferred tax liabilities for the actuarial results for the employee benefits provision, the revaluation reserve, the own credit adjustment, the compensation on additional Tier 1 capital and for the cash flow hedge reserve, for which the movements are recognised through equity.
| \u00a0 | 31-12-2025 | 31-12-2024 |
|---|---|---|
Current tax | -30 | 55 |
Deferred tax liabilities | -3 | -39 |
Total | -33 | 16 |
BNG and the Dutch tax authorities have concluded a bilateral agreement (\u2018vaststellingsovereenkomst\u2019) on 14 February 2024 that the financial figures based on IFRS 9 can be applied for tax purposes for the period 2024-2026. The bilateral agreement applies to the BNG fiscal unit. Pursuant to the agreement, all financial instruments are stated \u2013 for both reporting and tax purposes \u2013 in accordance with the IFRS principles of valuation, with the exception of transactions classified as Financial assets at fair value through other comprehensive income. All transactions within this category are valued for tax purposes at the lower of either the cost price or the market value. The result for tax purposes differs from the result for reporting purposes if, on balance, unrealised gains have arisen.
The reconciliation between the effective tax rate and the nominal tax rate is as follows:
| \u00a0 | 2025 | 2024 |
|---|---|---|
Nominal and effective tax rate | \u00a0 | \u00a0 |
Profit before tax | 240 | 403 |
Tax levied at the nominal tax rate | -62 | -104 |
Tax adjustment from previous years | 0 | 0 |
Participation exemption | 0 | 0 |
Deductible interest on Additional Tier 1 capital | 4 | 4 |
Non-deductible costs (bank levy) | -10 | -9 |
Effective tax | -68 | -109 |
Nominal tax rate | 25.8% | 25.8% |
Effective tax rate | 28.2% | 27.0% |
In 2025 there is no change in tax rates and the upper tax rate is equal to the rate in 2024: 25.8%.
The deferred taxes are measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled.
2025 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|
| \u00a0 | Opening balance | Changes through equity | Changes through the income statement | Closing balance |
Changes in deferred taxes | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Revaluation reserve FVOCI | - | -6 | - | -6 |
Cash flow hedge reserve | -3 | 8 | - | 5 |
Own Credit Adjustment | -3 | 1 | - | -2 |
Cost of hedging | -33 | 33 | - | 0 |
Additional Tier 1 capital | -2 | - | 0 | -2 |
Employee benefits provision | 0 | - | 0 | 0 |
Property | 2 | - | - | 2 |
Total | -39 | 36 | 0 | -3 |
2024 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|
| \u00a0 | Opening balance | Changes through equity | Changes through the income statement | Closing balance |
Changes in deferred taxes | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Cash flow hedge reserve | -3 | 0 | - | -3 |
Own Credit Adjustment | -1 | -2 | - | -3 |
Cost of hedging | -14 | -19 | - | -33 |
Additional Tier 1 capital | -2 | 0 | 0 | -2 |
Employee benefits provision | 0 | - | 0 | 0 |
Property | 1 | 1 | - | 2 |
Total | -19 | -20 | 0 | -39 |
The bank has registered deferred tax liabilities for the actuarial results for the employee benefits provision, the revaluation reserve, the own credit adjustment, the compensation on additional Tier 1 capital and for the cash flow hedge reserve, for which the movements are recognised through equity.
| \u00a0 | 31-12-2025 | 31-12-2024 |
|---|---|---|
Current tax | -30 | 55 |
Deferred tax liabilities | -3 | -39 |
Total | -33 | 16 |
BNG and the Dutch tax authorities have concluded a bilateral agreement (\u2018vaststellingsovereenkomst\u2019) on 14 February 2024 that the financial figures based on IFRS 9 can be applied for tax purposes for the period 2024-2026. The bilateral agreement applies to the BNG fiscal unit. Pursuant to the agreement, all financial instruments are stated \u2013 for both reporting and tax purposes \u2013 in accordance with the IFRS principles of valuation, with the exception of transactions classified as Financial assets at fair value through other comprehensive income. All transactions within this category are valued for tax purposes at the lower of either the cost price or the market value. The result for tax purposes differs from the result for reporting purposes if, on balance, unrealised gains have arisen.
The reconciliation between the effective tax rate and the nominal tax rate is as follows:
| \u00a0 | 2025 | 2024 |
|---|---|---|
Nominal and effective tax rate | \u00a0 | \u00a0 |
Profit before tax | 240 | 403 |
Tax levied at the nominal tax rate | -62 | -104 |
Tax adjustment from previous years | 0 | 0 |
Participation exemption | 0 | 0 |
Deductible interest on Additional Tier 1 capital | 4 | 4 |
Non-deductible costs (bank levy) | -10 | -9 |
Effective tax | -68 | -109 |
Nominal tax rate | 25.8% | 25.8% |
Effective tax rate | 28.2% | 27.0% |
In 2025 there is no change in tax rates and the upper tax rate is equal to the rate in 2024: 25.8%.
The deferred taxes are measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled.
2025 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|
| \u00a0 | Opening balance | Changes through equity | Changes through the income statement | Closing balance |
Changes in deferred taxes | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Revaluation reserve FVOCI | - | -6 | - | -6 |
Cash flow hedge reserve | -3 | 8 | - | 5 |
Own Credit Adjustment | -3 | 1 | - | -2 |
Cost of hedging | -33 | 33 | - | 0 |
Additional Tier 1 capital | -2 | - | 0 | -2 |
Employee benefits provision | 0 | - | 0 | 0 |
Property | 2 | - | - | 2 |
Total | -39 | 36 | 0 | -3 |
2024 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|
| \u00a0 | Opening balance | Changes through equity | Changes through the income statement | Closing balance |
Changes in deferred taxes | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Cash flow hedge reserve | -3 | 0 | - | -3 |
Own Credit Adjustment | -1 | -2 | - | -3 |
Cost of hedging | -14 | -19 | - | -33 |
Additional Tier 1 capital | -2 | 0 | 0 | -2 |
Employee benefits provision | 0 | - | 0 | 0 |
Property | 1 | 1 | - | 2 |
Total | -19 | -20 | 0 | -39 |
The deferred taxes are measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled.
2025 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|
| \u00a0 | Opening balance | Changes through equity | Changes through the income statement | Closing balance |
Changes in deferred taxes | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Revaluation reserve FVOCI | - | -6 | - | -6 |
Cash flow hedge reserve | -3 | 8 | - | 5 |
Own Credit Adjustment | -3 | 1 | - | -2 |
Cost of hedging | -33 | 33 | - | 0 |
Additional Tier 1 capital | -2 | - | 0 | -2 |
Employee benefits provision | 0 | - | 0 | 0 |
Property | 2 | - | - | 2 |
Total | -39 | 36 | 0 | -3 |
2024 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|
| \u00a0 | Opening balance | Changes through equity | Changes through the income statement | Closing balance |
Changes in deferred taxes | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Cash flow hedge reserve | -3 | 0 | - | -3 |
Own Credit Adjustment | -1 | -2 | - | -3 |
Cost of hedging | -14 | -19 | - | -33 |
Additional Tier 1 capital | -2 | 0 | 0 | -2 |
Employee benefits provision | 0 | - | 0 | 0 |
Property | 1 | 1 | - | 2 |
Total | -19 | -20 | 0 | -39 |
The provisions consist of a restructuring provision, an employee benefit provision and other provisions.
In 2025 BNG announced a reorganisation related to the strategy 'Route naar Meer Meerwaarde' (\u2018Route to added value\u2019) and, as a result, recognised a restructuring provision of EUR 15 million. The strategy 'Route to added value' aims to professionalize the organization and embed chain management. The main drivers of the resutructuring provision are the continued payment of wages for a period 6 months and a transition compensation acoording to the social arrangement.
The employee benefits provision comprises two components: a provision of EUR\u202f0.5\u202fmillion (2024: EUR \u202f1 \u202fmillion) for interest rate discounts on mortgage loans granted to active and retired employees, and a provision of EUR \u202f1 \u202fmillion (2024: EUR \u202f1 \u202fmillion) for vitality leave. Both provisions are long\u2011term in nature. The bank no longer offers mortgage loans to employees. Other provisions are related to commitments and guarantees.
| \u00a0 | 31-12-2025 | 31-12-2024 |
|---|---|---|
Restructuring provision | 15 | 1 |
Employee benefits provision | 1 | 2 |
Other provisions | 0 | 1 |
Total | 16 | 4 |
The movements in the present value of the provisions in relation to restructuring provisions, the defined benefit obligations for the mortgage interest rate discount and the vitality leave provision are as follows:
| \u00a0 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 |
|---|---|---|---|---|---|---|---|---|
| \u00a0 | Restructuring provision | Employee benefits provision | Other provisions | Total | ||||
Provision as at 1 January | 1 | 10 | 2 | 3 | 1 | 6 | 4 | 19 |
Utilised | -1 | -9 | -1 | -1 | 0 | 0 | -2 | -10 |
Additions | 15 | - | 0 | 0 | 0 | 0 | 15 | 0 |
Releases | - | - | 0 | 0 | -1 | -5 | -1 | -5 |
Provision as at 31 December | 15 | 1 | 1 | 2 | 0 | 1 | 16 | 4 |
| \u00a0 | 31-12-2025 | 31-12-2024 |
|---|---|---|
Amounts received in advance | 141 | 152 |
Other liabilities | 39 | 78 |
Total | 180 | 230 |
Amounts received in advance consists of a compensation for the lower return on cash collateral payments that has been received due to a discounting switch from EONIA to \u20acSTR that has taken place at clearing houses as part of the Interest Rate Benchmark Reform in 2020. This compensation is amortised over the weighted average of underlying derivatives at the moment of the switch. EUR\u00a011 million will be amortised in the next year (2024: EUR 11 million).
The remaining other liabilities are mainly composed of amounts payable related to derivatives and other financial transactions which are settled in the next period.
The following amounts represent the future lease liabilities for the right-of-use assets:
in thousands | 2025 | 2024 | ||
|---|---|---|---|---|
Maturity | Property-lease | Car-lease | Property-lease | Car-lease |
within 1 year | 835 | 602 | 1,049 | 555 |
1 to 2 years | - | 519 | 379 | 469 |
2 to 3 years | - | 455 | - | 428 |
3 to 4 years | - | 101 | - | 221 |
4 to 5 years | - | - | - | - |
More than 5 years | - | - | - | - |
Total lease liabilities | 835 | 1,677 | 1,428 | 1,673 |
The following amounts represent the future lease liabilities for the right-of-use assets:
in thousands | 2025 | 2024 | ||
|---|---|---|---|---|
Maturity | Property-lease | Car-lease | Property-lease | Car-lease |
within 1 year | 835 | 602 | 1,049 | 555 |
1 to 2 years | - | 519 | 379 | 469 |
2 to 3 years | - | 455 | - | 428 |
3 to 4 years | - | 101 | - | 221 |
4 to 5 years | - | - | - | - |
More than 5 years | - | - | - | - |
Total lease liabilities | 835 | 1,677 | 1,428 | 1,673 |
Since BNG has no minority interests after consolidation, the entire consolidated equity, excluding Additional Tier 1 capital, is attributable to shareholders. The items included in equity are explained in note 23 of the company financial statements.
| \u00a0 | 31-12-2025 | 31-12-2024 |
|---|---|---|
Share capital | 139 | 139 |
Share premium reserve | 6 | 6 |
Revaluation reserve | 17 | -172 |
Cash flow hedge reserve | -13 | 9 |
Own Credit Adjustment | 6 | 9 |
Cost of hedging | -2 | 94 |
Retained earnings | 4,229 | 4,089 |
Unappropriated profit | 172 | 294 |
Equity attributable to shareholders | 4,554 | 4,468 |
Additional Tier 1 capital | 309 | 309 |
Total | 4,863 | 4,777 |
| \u00a0 | 2025 | 2024 |
|---|---|---|
Number of paid-up shares outstanding | 55,690,720 | 55,690,720 |
Proposed dividend per share in euros | 1.41 | 2.51 |
| \u00a0 | \u00a0 | \u00a0 |
Proposed dividend pursuant to the Articles of Association | 79 | 140 |
The proposed dividend distribution for 2025 is EUR 1.41 per share (2024: EUR 2.51 per share). For 2025, this takes into account the EUR 14 million (2024: EUR 15 million) compensation (before tax) that has already been paid on the Additional Tier 1 capital in 2025. The payments are charged to the Retained earnings.
The authorised capital is divided into 100 million shares with a nominal value of EUR\u00a02.50 each, of which 55,690,720 shares have been issued and fully paid up. The number of shares in circulation remained unchanged during the financial year. BNG and its subsidiaries hold no company shares. None of the shares carry preferential rights, nor are they subject to restrictions. There are no options that can be exercised to obtain entitlement to the issue of shares.
There were no movements in 2025 and 2024.
At year-end 2025, the revaluation reserve includes EUR 264 million in unrealised value changes (2024: EUR 135 million), excluding the value of the hedged part of the interest-rate risk of interest-bearing securities involved in hedge accounting, which is a part of the Financial assets at fair value through other comprehensive income. The revaluation reserve has been adjusted for taxes. Upon the sale of these assets, the associated cumulative result recognised in equity is transferred to the income statement.
The effective portion of the unrealised changes in the value of derivatives involved in a cash flow hedge relationship, resulting from changes in the foreign exchange rates, are recognised in the cash flow hedge reserve. The cash flow hedge reserve is adjusted for taxes.
The Own credit adjustment amounts to EUR 6 million net of taxes (2024: EUR 9 million). This adjustment relates to changes in credit risk of financial liabilities measured at fair value through the income statement.
The cost of hedging reserve records movements in foreign currency basis spreads in cross currency swaps involved in hedge accounting and is amortised over the life of the hedge. The cumulative movements will reduce to nil by maturity of the hedging instrument.
After determination of the distributable profit appropriation pursuant to the Articles of Association, the General Meeting of Shareholders decides which portion of the remaining profit is added to the Retained earnings. In 2025, payment of dividend of EUR 140 million for 2024 to the bank\u2019s shareholders were scheduled. Payments took place in April 2025 and an amount of EUR 14 million (before tax) was distributed to the holders of the Additional Tier 1 capital in 2025 (2024: EUR 15 million) and charged to the Retained earnings.
The balance sheet is prepared prior to profit appropriation. This item represents the total result achieved after deduction of corporate income tax.
As per 31 December 2025 the bank\u2019s Additional Tier 1 capital amounts to EUR 309 million. The instruments are structured in line with CRR requirements and the EBA guidelines and qualify as Additional Tier 1 capital. Additional Tier 1 capital concerns perpetual loans involving an annual non-cumulative discretionary payment on the outstanding principal amount, subject to temporary write-down in the event that the CET1 ratio falls below 5.125%. In case of write-down, this amount will be transferred to the Retained earnings. Write-down from the Retained earnings can be reversed (write-up) under certain conditions at the moment that the trigger ratio is back above 5.125% again. BNG is entitled to distribute the interest payment on a discretionary basis in the form of a compensation charged to the retained earnings. The compensation is determined on the basis of the prevailing principal amount. The distributed compensation is deductible for corporate income tax. BNG has the unilateral contractual option to call the Additional Tier 1 capital issued. The tranches issued in 2016 (a nominal amount of EUR 309 million) can be redeemed every year from May 2022. The bank chose not to redeem the tranche in 2025.
", "dimensions": { "concept": "ifrs-full:DisclosureOfShareCapitalReservesAndOtherEquityInterestExplanatory", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "table-blocktag-i3043": { "value": "| \u00a0 | 2025 | 2024 |
|---|---|---|
Number of paid-up shares outstanding | 55,690,720 | 55,690,720 |
Proposed dividend per share in euros | 1.41 | 2.51 |
| \u00a0 | \u00a0 | \u00a0 |
Proposed dividend pursuant to the Articles of Association | 79 | 140 |
The proposed dividend distribution for 2025 is EUR 1.41 per share (2024: EUR 2.51 per share). For 2025, this takes into account the EUR 14 million (2024: EUR 15 million) compensation (before tax) that has already been paid on the Additional Tier 1 capital in 2025. The payments are charged to the Retained earnings.
Amounts in millions of euros
| \u00a0 | 2025 | 2024 |
|---|---|---|
Net profit | 172 | 294 |
Compensation on Additional Tier 1 capital | -14 | -15 |
Profit attributable to shareholders | 158 | 279 |
Appropriation of profit attributable to the bank\u2019s shareholders is as follows: | \u00a0 | \u00a0 |
Appropriation to the 'Retained earnings' pursuant to Article 20(3) of the BNG Bank Articles of Association | 79 | 139 |
Dividend pursuant to Article 20(4) of the BNG Bank Articles of Association | 79 | 140 |
| \u00a0 | 158 | 279 |
The profit appropriation is based on the total net profit for 2025. The proposed dividends have no consequences for tax purposes. The compensation takes into account the EUR 14 million already paid on the Additional Tier 1 capital in May 2025 charged to the Retained earnings.
", "dimensions": { "concept": "ifrs-full:DisclosureOfDividendsExplanatory", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "xbrlvalue-dividendsproposedordeclaredbeforefinancialstatementsauthorisedforissuebutnotrecognisedasdistributiontoownerspershare-i3044": { "value": "1.41", "decimals": 2, "dimensions": { "concept": "ifrs-full:DividendsProposedOrDeclaredBeforeFinancialStatementsAuthorisedForIssueButNotRecognisedAsDistributionToOwnersPerShare", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00", "unit": "iso4217:EUR/xbrli:shares" } }, "xbrlvalue-dividendsrecognisedasdistributionstoownerspershare-i3045": { "value": "2.51", "decimals": 2, "dimensions": { "concept": "ifrs-full:DividendsRecognisedAsDistributionsToOwnersPerShare", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR/xbrli:shares" } }, "p-blocktag-i3047": { "value": "The authorised capital is divided into 100 million shares with a nominal value of EUR\u00a02.50 each, of which 55,690,720 shares have been issued and fully paid up. The number of shares in circulation remained unchanged during the financial year. BNG and its subsidiaries hold no company shares. None of the shares carry preferential rights, nor are they subject to restrictions. There are no options that can be exercised to obtain entitlement to the issue of shares.
", "dimensions": { "concept": "ifrs-full:DisclosureOfIssuedCapitalExplanatory", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "p-blocktag-i3048": { "value": "There were no movements in 2025 and 2024.
At year-end 2025, the revaluation reserve includes EUR 264 million in unrealised value changes (2024: EUR 135 million), excluding the value of the hedged part of the interest-rate risk of interest-bearing securities involved in hedge accounting, which is a part of the Financial assets at fair value through other comprehensive income. The revaluation reserve has been adjusted for taxes. Upon the sale of these assets, the associated cumulative result recognised in equity is transferred to the income statement.
The effective portion of the unrealised changes in the value of derivatives involved in a cash flow hedge relationship, resulting from changes in the foreign exchange rates, are recognised in the cash flow hedge reserve. The cash flow hedge reserve is adjusted for taxes.
The Own credit adjustment amounts to EUR 6 million net of taxes (2024: EUR 9 million). This adjustment relates to changes in credit risk of financial liabilities measured at fair value through the income statement.
The cost of hedging reserve records movements in foreign currency basis spreads in cross currency swaps involved in hedge accounting and is amortised over the life of the hedge. The cumulative movements will reduce to nil by maturity of the hedging instrument.
After determination of the distributable profit appropriation pursuant to the Articles of Association, the General Meeting of Shareholders decides which portion of the remaining profit is added to the Retained earnings. In 2025, payment of dividend of EUR 140 million for 2024 to the bank\u2019s shareholders were scheduled. Payments took place in April 2025 and an amount of EUR 14 million (before tax) was distributed to the holders of the Additional Tier 1 capital in 2025 (2024: EUR 15 million) and charged to the Retained earnings.
The balance sheet is prepared prior to profit appropriation. This item represents the total result achieved after deduction of corporate income tax.
", "dimensions": { "concept": "ifrs-full:DisclosureOfReservesAndOtherEquityInterestExplanatory", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i3238": { "value": "Interest revenue calculated by using the effective interest method includes all positive interest results from both financial instruments and derivatives involved in hedge accounting, including negative interest expenses on financial liabilities. In addition, other credit-related income received is included in this item. Interest revenues on assets that were subject to impairment are recognised on the original effective interest percentage, as long as the expected interest cash flows are received.
Interest expenses calculated by using the effective interest method include all negative interest results from both traditional financial instruments and derivatives involved in hedge accounting, including negative interest revenue on financial assets. The costs of borrowing as well as other interest-related charges are also recognised as interest expenses calculated by using the effective interest method.
Other interest revenue and expenses consist mainly of interest results of derivatives not involved in hedge accounting and interest results of financial assets and liabilities measured at fair value.
| \u00a0 | 2025 | 2024 | ||
|---|---|---|---|---|
Interest revenue | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Interest revenue calculated by using the effective interest method: | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
- Financial assets at amortised cost | 3,009 | \u00a0 | 3,425 | \u00a0 |
- Financial assets at fair value through other comprehensive income | 287 | \u00a0 | 251 | \u00a0 |
- Derivatives involved in hedge accounting | 1,897 | \u00a0 | 2,990 | \u00a0 |
- Negative interest expenses on financial liabilities | 15 | \u00a0 | 25 | \u00a0 |
| \u00a0 | \u00a0 | 5,208 | \u00a0 | 6,691 |
Other interest revenue: | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
- Financial assets designated at fair value through the income statement | 26 | \u00a0 | 40 | \u00a0 |
- Financial assets mandatory at fair value through the income statement | 1 | \u00a0 | 1 | \u00a0 |
- Derivatives not involved in hedge accounting | 200 | \u00a0 | 201 | \u00a0 |
- Other | 13 | \u00a0 | 13 | \u00a0 |
| \u00a0 | \u00a0 | 240 | \u00a0 | 255 |
Total interest revenue | \u00a0 | 5,448 | \u00a0 | 6,946 |
Interest expenses | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Interest expenses calculated by using the effective interest method: | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
- Financial liabilities at amortised cost | 3,059 | \u00a0 | 3,177 | \u00a0 |
- Derivatives involved in hedge accounting | 1,802 | \u00a0 | 3,050 | \u00a0 |
- Interest expenses on financial assets | 40 | \u00a0 | 121 | \u00a0 |
| \u00a0 | \u00a0 | 4,901 | \u00a0 | 6,348 |
Other interest expenses | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
- Financial liabilities designated at fair value through the income statement | 8 | \u00a0 | 9 | \u00a0 |
- Derivatives not involved in hedge accounting | 33 | \u00a0 | 43 | \u00a0 |
- Other | 10 | \u00a0 | 10 | \u00a0 |
| \u00a0 | \u00a0 | 51 | \u00a0 | 62 |
Total interest expenses | \u00a0 | 4,952 | \u00a0 | 6,410 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Total interest result | \u00a0 | 496 | \u00a0 | 536 |
Interest revenue calculated by using the effective interest method includes all positive interest results from both financial instruments and derivatives involved in hedge accounting, including negative interest expenses on financial liabilities. In addition, other credit-related income received is included in this item. Interest revenues on assets that were subject to impairment are recognised on the original effective interest percentage, as long as the expected interest cash flows are received.
Interest expenses calculated by using the effective interest method include all negative interest results from both traditional financial instruments and derivatives involved in hedge accounting, including negative interest revenue on financial assets. The costs of borrowing as well as other interest-related charges are also recognised as interest expenses calculated by using the effective interest method.
Other interest revenue and expenses consist mainly of interest results of derivatives not involved in hedge accounting and interest results of financial assets and liabilities measured at fair value.
| \u00a0 | 2025 | 2024 | ||
|---|---|---|---|---|
Interest revenue | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Interest revenue calculated by using the effective interest method: | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
- Financial assets at amortised cost | 3,009 | \u00a0 | 3,425 | \u00a0 |
- Financial assets at fair value through other comprehensive income | 287 | \u00a0 | 251 | \u00a0 |
- Derivatives involved in hedge accounting | 1,897 | \u00a0 | 2,990 | \u00a0 |
- Negative interest expenses on financial liabilities | 15 | \u00a0 | 25 | \u00a0 |
| \u00a0 | \u00a0 | 5,208 | \u00a0 | 6,691 |
Other interest revenue: | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
- Financial assets designated at fair value through the income statement | 26 | \u00a0 | 40 | \u00a0 |
- Financial assets mandatory at fair value through the income statement | 1 | \u00a0 | 1 | \u00a0 |
- Derivatives not involved in hedge accounting | 200 | \u00a0 | 201 | \u00a0 |
- Other | 13 | \u00a0 | 13 | \u00a0 |
| \u00a0 | \u00a0 | 240 | \u00a0 | 255 |
Total interest revenue | \u00a0 | 5,448 | \u00a0 | 6,946 |
Interest expenses | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Interest expenses calculated by using the effective interest method: | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
- Financial liabilities at amortised cost | 3,059 | \u00a0 | 3,177 | \u00a0 |
- Derivatives involved in hedge accounting | 1,802 | \u00a0 | 3,050 | \u00a0 |
- Interest expenses on financial assets | 40 | \u00a0 | 121 | \u00a0 |
| \u00a0 | \u00a0 | 4,901 | \u00a0 | 6,348 |
Other interest expenses | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
- Financial liabilities designated at fair value through the income statement | 8 | \u00a0 | 9 | \u00a0 |
- Derivatives not involved in hedge accounting | 33 | \u00a0 | 43 | \u00a0 |
- Other | 10 | \u00a0 | 10 | \u00a0 |
| \u00a0 | \u00a0 | 51 | \u00a0 | 62 |
Total interest expenses | \u00a0 | 4,952 | \u00a0 | 6,410 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Total interest result | \u00a0 | 496 | \u00a0 | 536 |
This item includes income from services provided to third parties.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Income from loans and credit facilities | 16 | 24 |
Income from payment services | 9 | 10 |
Total | 25 | 34 |
This item comprises expenses totalling EUR 2 million (2024: EUR 4 million) relating to services rendered by third parties in relation to loans, credit facilities and payment services.
This item includes the result on financial transactions broken down into realised and unrealised market value adjustments.
| \u00a0 | 2025 | 2024 | ||
|---|---|---|---|---|
Market value changes in financial assets at fair value through the income statement resulting from changes in credit and liquidity spreads, consisting of: | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
- Interest-bearing securities | 1 | \u00a0 | 5 | \u00a0 |
- Structured loans | 2 | \u00a0 | -7 | \u00a0 |
| \u00a0 | \u00a0 | 3 | \u00a0 | -2 |
Result on hedge accounting | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
- Portfolio fair value hedge accounting | -78 | \u00a0 | 39 | \u00a0 |
- Micro fair value hedge accounting | 34 | \u00a0 | -46 | \u00a0 |
- Micro cash flow hedge accounting | 0 | \u00a0 | 1 | \u00a0 |
| \u00a0 | \u00a0 | -44 | \u00a0 | -6 |
Change in counterparty credit risk of derivatives (CVA/DVA) | \u00a0 | 8 | \u00a0 | -2 |
Realised sales and buy-out results | \u00a0 | -6 | \u00a0 | -18 |
Other market value changes | \u00a0 | 8 | \u00a0 | 13 |
Total | \u00a0 | -31 | \u00a0 | -15 |
The result from market value changes in financial assets at fair value through the income statement increased to EUR 3 million positive in 2025 (2024: EUR 2 million negative). Lower credit and liquidity spreads had a positive impact on the market value changes of interest-bearing securities compared to 2024.
The result on hedge accounting contains the fair value movements of the derivatives in hedge accounting relationships and the fair value movements of the hedged items. The result decreased to EUR 44 million negative in 2025 (2024: EUR 6 million negative). The result on hedge accounting is due to ineffectiveness of hedge relationships. This is due to increased long term interest rates, volatile foreign currencies, realised sales of interest-bearing securities.
The realised sales and buy-out results of EUR 6 million negative (2024: 18 million negative) are mainly due to on balance results on the sales of interest-bearing securities from the liquidity portfolio of the bank.
", "dimensions": { "concept": "ifrs-full:DisclosureOfProfitLossFromOperatingActivitiesExplanatory", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "p-blocktag-i3056": { "value": "Interest revenue calculated by using the effective interest method includes all positive interest results from both financial instruments and derivatives involved in hedge accounting, including negative interest expenses on financial liabilities. In addition, other credit-related income received is included in this item. Interest revenues on assets that were subject to impairment are recognised on the original effective interest percentage, as long as the expected interest cash flows are received.
| \u00a0 | 2025 | 2024 | ||
|---|---|---|---|---|
Interest revenue | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Interest revenue calculated by using the effective interest method: | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
- Financial assets at amortised cost | 3,009 | \u00a0 | 3,425 | \u00a0 |
- Financial assets at fair value through other comprehensive income | 287 | \u00a0 | 251 | \u00a0 |
- Derivatives involved in hedge accounting | 1,897 | \u00a0 | 2,990 | \u00a0 |
- Negative interest expenses on financial liabilities | 15 | \u00a0 | 25 | \u00a0 |
| \u00a0 | \u00a0 | 5,208 | \u00a0 | 6,691 |
Other interest revenue: | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
- Financial assets designated at fair value through the income statement | 26 | \u00a0 | 40 | \u00a0 |
- Financial assets mandatory at fair value through the income statement | 1 | \u00a0 | 1 | \u00a0 |
- Derivatives not involved in hedge accounting | 200 | \u00a0 | 201 | \u00a0 |
- Other | 13 | \u00a0 | 13 | \u00a0 |
| \u00a0 | \u00a0 | 240 | \u00a0 | 255 |
Total interest revenue | \u00a0 | 5,448 | \u00a0 | 6,946 |
Interest expenses | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Interest expenses calculated by using the effective interest method: | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
- Financial liabilities at amortised cost | 3,059 | \u00a0 | 3,177 | \u00a0 |
- Derivatives involved in hedge accounting | 1,802 | \u00a0 | 3,050 | \u00a0 |
- Interest expenses on financial assets | 40 | \u00a0 | 121 | \u00a0 |
| \u00a0 | \u00a0 | 4,901 | \u00a0 | 6,348 |
Other interest expenses | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
- Financial liabilities designated at fair value through the income statement | 8 | \u00a0 | 9 | \u00a0 |
- Derivatives not involved in hedge accounting | 33 | \u00a0 | 43 | \u00a0 |
- Other | 10 | \u00a0 | 10 | \u00a0 |
| \u00a0 | \u00a0 | 51 | \u00a0 | 62 |
Total interest expenses | \u00a0 | 4,952 | \u00a0 | 6,410 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Total interest result | \u00a0 | 496 | \u00a0 | 536 |
Interest expenses calculated by using the effective interest method include all negative interest results from both traditional financial instruments and derivatives involved in hedge accounting, including negative interest revenue on financial assets. The costs of borrowing as well as other interest-related charges are also recognised as interest expenses calculated by using the effective interest method.
| \u00a0 | 2025 | 2024 | ||
|---|---|---|---|---|
Interest revenue | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Interest revenue calculated by using the effective interest method: | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
- Financial assets at amortised cost | 3,009 | \u00a0 | 3,425 | \u00a0 |
- Financial assets at fair value through other comprehensive income | 287 | \u00a0 | 251 | \u00a0 |
- Derivatives involved in hedge accounting | 1,897 | \u00a0 | 2,990 | \u00a0 |
- Negative interest expenses on financial liabilities | 15 | \u00a0 | 25 | \u00a0 |
| \u00a0 | \u00a0 | 5,208 | \u00a0 | 6,691 |
Other interest revenue: | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
- Financial assets designated at fair value through the income statement | 26 | \u00a0 | 40 | \u00a0 |
- Financial assets mandatory at fair value through the income statement | 1 | \u00a0 | 1 | \u00a0 |
- Derivatives not involved in hedge accounting | 200 | \u00a0 | 201 | \u00a0 |
- Other | 13 | \u00a0 | 13 | \u00a0 |
| \u00a0 | \u00a0 | 240 | \u00a0 | 255 |
Total interest revenue | \u00a0 | 5,448 | \u00a0 | 6,946 |
Interest expenses | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Interest expenses calculated by using the effective interest method: | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
- Financial liabilities at amortised cost | 3,059 | \u00a0 | 3,177 | \u00a0 |
- Derivatives involved in hedge accounting | 1,802 | \u00a0 | 3,050 | \u00a0 |
- Interest expenses on financial assets | 40 | \u00a0 | 121 | \u00a0 |
| \u00a0 | \u00a0 | 4,901 | \u00a0 | 6,348 |
Other interest expenses | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
- Financial liabilities designated at fair value through the income statement | 8 | \u00a0 | 9 | \u00a0 |
- Derivatives not involved in hedge accounting | 33 | \u00a0 | 43 | \u00a0 |
- Other | 10 | \u00a0 | 10 | \u00a0 |
| \u00a0 | \u00a0 | 51 | \u00a0 | 62 |
Total interest expenses | \u00a0 | 4,952 | \u00a0 | 6,410 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Total interest result | \u00a0 | 496 | \u00a0 | 536 |
This item includes income from services provided to third parties.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Income from loans and credit facilities | 16 | 24 |
Income from payment services | 9 | 10 |
Total | 25 | 34 |
This item comprises expenses totalling EUR 2 million (2024: EUR 4 million) relating to services rendered by third parties in relation to loans, credit facilities and payment services.
", "dimensions": { "concept": "ifrs-full:DisclosureOfFeeAndCommissionIncomeExpenseExplanatory", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i3351": { "value": "The other results of EUR 0.4 million (2024: EUR 1 million) consist mainly of income from consultancy services provided by BNG Gebiedsontwikkeling B.V.
", "dimensions": { "concept": "ifrs-full:DisclosureOfOtherOperatingIncomeExpenseExplanatory", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i3388": { "value": "| \u00a0 | 2025 | 2024 |
|---|---|---|
Wages and salaries | 51 | 48 |
Pension costs | 7 | 7 |
Social security costs | 6 | 5 |
Additions to the employee benefits provision | 0 | 0 |
External employees | 32 | 34 |
Other staff costs | 23 | 7 |
Total | 119 | 101 |
The increase in staff costs is mainly due to the increase in the number of internal employees during 2025. Expressed in FTEs, the number of employees with a fixed or indefinite contract at year-end 2025 is 503.5 FTE (2024: 479.9 FTEs).
There was no variable remuneration of identified staff members in 2025 and 2024. We refer to section 'Related parties' for the remuneration of the Executive Committee.
Other staff costs includes the reorganisation provision of EUR 15 million recognised in 2025. See note 21 Provisions for more information.
", "dimensions": { "concept": "ifrs-full:DisclosureOfEmployeeBenefitsExplanatory", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i3389": { "value": "These expenses include, among other things, outsourcing costs, maintenance costs of property and equipment, consultancy costs, training expenses and IT expenses. The total other administrative expenses for 2025 amounted to EUR\u00a052\u00a0million (2024: EUR\u00a047\u00a0million).
The fees paid to independent auditors are also included in Other administrative expenses.
In conformity with Section 382a of Part 9, Book 2 of the Dutch Civil Code, a breakdown of the fees paid to the independent auditors for audits and audit-related and non-audit-related services is given in note 34 to the consolidated financial statements.
The European resolution regime arising from the Bank Recovery and Resolution Directive entered into force on 1 January 2015. The expenses for the resolution fund are deductible for corporate income tax purposes. No contribution was done in 2024 and 2025 as the Single Resolution Funds reached its target at the end of 2023.
The expenses concerning the bank levy are not deductible for corporate income tax purposes. As a consequence, the effective tax burden exceeds the nominal tax rate in 2025 and 2024. BNG is due to pay the bank levy in October of every year, which for 2025 amounted to EUR 36 million (2024: EUR 31 million). The increase is caused by a higher balance sheet total as at 31 December 2024. The calculation of the levy is stated in note 32 of the Company financial statements.
", "dimensions": { "concept": "ifrs-full:DisclosureOfGeneralAndAdministrativeExpenseExplanatory", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i3390": { "value": "A breakdown of this item is included in the note on Property and equipment (note 11). In total, the depreciation charges amounted to EUR 2 million in 2025 (2024: EUR 4 million).
", "dimensions": { "concept": "ifrs-full:DisclosureOfDepreciationAndAmortisationExpenseExplanatory", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i3667": { "value": "The impairments in 2025 amounted to an expense of EUR 41 million in the income statement (2024: EUR 35 million income).
Per December 2025 BNG applied a Project Finance overlay which led to an impairment expense of EUR 7 million per December 2025. The Project Finance rating model was found to underestimate credit risk. A credit rating adjustment has been applied in Q4 2025 whereby all Project Finance exposures are downgraded by three rating notches. This adjustment aligns model\u2011implied probabilities of default with observed defaults over the period 2022\u20132024. This change results in an estimated increase in expected credit losses of approximately EUR 7 million and due to this downgrade, part of the loans moved to stage 2.
Also per December 2025 BNG impaired 37 million of Solar farm exposures. This due to worsening market conditions in the renewables sector.
2025 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|
| \u00a0 | Stage 1 | Stage 2 | Stage 3 | Total |
Impairment results due to movements in allowances: | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
- Increases in allowances due to origination and acquisition | 1 | 0 | 12 | 13 |
- Changes in allowances due to changes in credit risk (net) | 1 | 14 | 33 | 48 |
- Decreases in allowances due to derecognition | 0 | -1 | -21 | -22 |
| \u00a0 | 2 | 13 | 24 | 39 |
Impairment results not due to movements in allowances: | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
- Impairment result due to closings (no write-off) | - | - | 1 | 1 |
- Reversal of impairment due to cash flows received from past write-offs | - | - | 0 | 0 |
| \u00a0 | - | - | 1 | 1 |
Net impairment result on financial assets | 2 | 13 | 25 | 40 |
2024 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|
| \u00a0 | Stage 1 | Stage 2 | Stage 3 | Total |
Impairment results due to movements in allowances: | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
- Increases in allowances due to origination and acquisition | 1 | 0 | 0 | 1 |
- Changes in allowances due to changes in credit risk (net) | -2 | -5 | 3 | -4 |
- Decreases in allowances due to derecognition | -1 | -1 | -20 | -22 |
| \u00a0 | -2 | -6 | -17 | -25 |
Impairment results not due to movements in allowances: | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
- Reversal of impairment due to cash flows received from past write-offs | - | - | -5 | -5 |
- Impairments due to write-offs | - | - | -5 | -5 |
| \u00a0 | - | - | -10 | -10 |
Net impairment result on financial assets | -2 | -6 | -27 | -35 |
2025 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|
| \u00a0 | Stage 1 | Stage 2 | Stage 3 | Total |
Impairment results due to movements in allowances: | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
- Increases in allowances due to origination and acquisition | 1 | 0 | 12 | 13 |
- Changes in allowances due to changes in credit risk (net) | 1 | 14 | 33 | 48 |
- Decreases in allowances due to derecognition | 0 | -1 | -21 | -22 |
- Decreases in allowance due to write-offs | - | - | 0 | 0 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Total movements in allowances | 2 | 13 | 24 | 39 |
2024 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|
| \u00a0 | Stage 1 | Stage 2 | Stage 3 | Total |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
- Increases in allowances due to origination and acquisition | 1 | 0 | 0 | 1 |
- Changes in allowances due to changes in credit risk (net) | -2 | -5 | 3 | -4 |
- Decreases in allowances due to derecognition | -1 | -1 | -23 | -25 |
- Decreases in allowance due to write-offs | - | - | -19 | -19 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Total movements in allowances | -2 | -6 | -39 | -47 |
Note 38 provides an overview of the breakdown of financial assets subject to impairment into impairment stages.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Impairment of joint ventures | 0 | 1 |
Reversal of impairment of joint ventures | -2 | - |
Total | -2 | 1 |
In 2025, impairments on BNG Gebiedsontwikkeling B.V. participations amounted EUR 0 million (2024: EUR 1 million). The reversal of the impairment is EUR 2 mln. All participations are valued on a going concern basis.
The following tables provide a breakdown of the financial assets subject to impairment and off-balance sheet commitments into the 3 impairment stages:
Stage 1: performing exposures without significant increase in credit risk (SICR) since initial recognition.
Stage 2: performing exposures with significant increase in credit risk since initial recognition.
Stage 3: non-performing exposures.
The allowance for credit loss for financial assets at fair value through other comprehensive income is included in the comprehensive income and not in the (net) carrying amount.
31-12-2025 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|---|---|---|
| \u00a0 | \u00a0 | Gross carrying amount | Allowance for credit loss | ||||
| \u00a0 | Carrying amount | Performing | Non-performing | Performing | Non-performing | ||
| \u00a0 | \u00a0 | Stage 1 | Stage 2 | Stage 3 | Stage 1 | Stage 2 | Stage 3 |
Financial assets subject to impairment | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Cash and balances held with central banks | 1,831 | 1,831 | - | - | - | - | - |
Amounts due from banks | 704 | 704 | - | - | 0 | - | - |
Cash collateral posted | 3,721 | 3,721 | - | - | - | - | - |
Financial assets at fair value through other comprehensive income | 11,795 | 11,795 | - | - | - | - | - |
Interest-bearing securities at amortised cost | 8,105 | 8,105 | - | - | 0 | - | - |
Loans and advances | 97,627 | 96,489 | 885 | 351 | -4 | -23 | -71 |
Total | 123,783 | 122,645 | 885 | 351 | -4 | -23 | -71 |
31-12-2024 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|---|---|---|
| \u00a0 | \u00a0 | Gross carrying amount | Allowance for credit loss | ||||
| \u00a0 | Carrying amount | Performing | Non-performing | Performing | Non-performing | ||
| \u00a0 | \u00a0 | Stage 1 | Stage 2 | Stage 3 | Stage 1 | Stage 2 | Stage 3 |
Financial assets subject to impairment | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Cash and balances held with central banks | 6,625 | 6,625 | - | - | - | - | - |
Amounts due from banks | 804 | 804 | - | - | 0 | - | - |
Cash collateral posted | 3,545 | 3,545 | - | - | - | - | - |
Financial assets at fair value through other comprehensive income | 11,322 | 11,322 | - | - | - | - | - |
Interest-bearing securities at amortised cost | 9,133 | 9,133 | - | - | 0 | - | - |
Loans and advances | 94,537 | 93,534 | 600 | 460 | -3 | -10 | -44 |
Total | 125,966 | 124,963 | 600 | 460 | -3 | -10 | -44 |
31-12-2025 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|---|---|
| \u00a0 | Nominal amount | Provision | ||||
| \u00a0 | Performing | Non-performing | Performing | Non-performing | ||
| \u00a0 | Stage 1 | Stage 2 | Stage 3 | Stage 1 | Stage 2 | Stage 3 |
Off-balance sheet commitments | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Contingent liabilities | 442 | 1 | 0 | 0 | 0 | - |
Revocable facilities | 5,117 | 63 | 23 | - | - | - |
Irrevocable facilities | 2,413 | 1 | 0 | 0 | 0 | - |
Total | 7,972 | 65 | 23 | 0 | 0 | - |
31-12-2024 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|---|---|
| \u00a0 | Nominal amount | Provision | ||||
| \u00a0 | Performing | Non-performing | Performing | Non-performing | ||
| \u00a0 | Stage 1 | Stage 2 | Stage 3 | Stage 1 | Stage 2 | Stage 3 |
Off-balance sheet commitments | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Contingent liabilities | 499 | 0 | 1 | - | - | -1 |
Revocable facilities | 5,296 | 72 | 14 | - | - | - |
Irrevocable facilities | 3,168 | 0 | 6 | - | - | - |
Total | 8,963 | 72 | 21 | - | - | -1 |
The following table shows the movements in allowances for expected credit losses for financial assets and the provision for expected credit losses for off-balance sheet commitments.
2025 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|---|---|
| \u00a0 | Opening balance | Increases due to origination and acqui- sition | Decrease due to derecog- nition repayments and disposals | Changes due to change in credit risk (net) | Decrease in allowance account due to write-offs | Closing balance |
Allowances | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Cash and balances held with central banks | - | - | - | - | - | - |
Amounts due from banks | 0 | - | 0 | 0 | - | 0 |
Financial assets at fair value through other comprehensive income | 0 | 0 | 0 | 0 | - | 0 |
Interest-bearing securities at amortised cost | 0 | 0 | 0 | 0 | - | 0 |
Loans and advances | 57 | 13 | -20 | 48 | 0 | 98 |
| \u00a0 | 57 | 13 | -20 | 48 | 0 | 98 |
Provision | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Off-balance sheet commitments | 1 | 0 | -1 | 0 | - | 0 |
2024 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|---|---|
| \u00a0 | Opening balance | Increases due to origination and acqui- sition | Decrease due to derecog- nition repayments and disposals | Changes due to change in credit risk (net) | Decrease in allowance account due to write-offs | Closing balance |
Allowances | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Cash and balances held with central banks | - | - | - | - | - | 0 |
Amounts due from banks | 0 | 0 | 0 | 0 | - | 0 |
Financial assets at fair value through other comprehensive income | 0 | 0 | 0 | 0 | - | 0 |
Interest-bearing securities at amortised cost | 1 | 0 | 0 | -1 | - | 0 |
Loans and advances | 99 | 0 | -25 | 2 | -19 | 57 |
| \u00a0 | 100 | 0 | -25 | 1 | -19 | 57 |
Provision | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Off-balance sheet commitments | 6 | 0 | 0 | -5 | - | 1 |
There were no financial assets for which the contractual cash flows have been modified during 2025 while they had a loss allowance measured at an amount equal to lifetime expected credit loss (i.e. stage 2 or 3). No financial assets which were modified in previous reporting periods while they had a loss allowance measured at an amount equal to lifetime expected credit loss (stage 2 or 3) have been moved back to stage 1 during 2025.
The Expected Credit Loss (ECL) of the financial asset is measured on either a 12-month or lifetime basis depending on whether a significant increase in credit risk has occurred. The total Expected Credit Loss is a discounted product of the Probability of Default (PD), Loss Given Default (LGD) and Exposure At Default (EAD).
PDs are used as a key component in the determination of ECLs and SICR. BNG has developed PD-models, largely based on expert judgements, for exposures for which no external rating is available. To ensure IFRS 9 compliance and so-called \u2018point-in-time\u2019 PDs, the bank developed overlay models that include Forward-Looking Information (FLI). For staging purposes, credit ratings are used which are adjusted for forward-looking information. BNG applies three internally developed scenarios based on economic forecasts which are consistent with inputs to other relevant estimates within the financial statements. The proposed macro economic forecasts are benchmarked with an external macro economic forecast to ensure the external validity of the scenarios. The scenarios are approved in the Asset and Liability Committee (ALCO). In doing so, BNG ensures that the PDs are reasonable and supportable.
Because of its low default credit portfolio and the lack of historical internal LGD data, BNG is not able to create LGD models. Therefore, BNG applies a basic flat LGD approach, with four different LGD percentages for its entire exposure:
0% for exposures granted to or guaranteed by (Dutch) central or regional governments;
10% for government bonds issued by central or regional governments in the EU;
35% for exposure without a guarantee of a central or regional government and senior unsecured bonds; and
75% for subordinated loans.
The EAD for loans and for interest-bearing securities (excluding securitisations) is based on contractual repayments owed by the obligor over a 12-month or lifetime period. Voluntary repayments or early redemptions are not taken into account, as these are historically infrequent. For securitisations, the future contractual repayments are based on estimated Constant Prepayment Rates which are derived from external sources. In case of committed (off-balance sheet) facilities, the maximum exposure is adjusted in order to reflect the expected drawdown behaviour for either a 12-month or lifetime period (in accordance with the impairment stage).
BNG applies the Point-in-Time PD, which is adjusted for forward-looking information, as an input parameter for the assessment of significant changes in credit risk since recognition. In addition, the bank uses forbearance measures as well as a 30-day past-due period as backstop criteria to determine a significant increase in credit risk. On the other hand, the bank also applies a low credit risk exemption for monitoring significant changes in credit risk since recognition. In this case, an impairment is measured using the 12-month ECL, without determining if a significant increase in credit risk has occurred.
Part of the Project FInance portfolio has increased due to an overlay and moved to stage 2. For the impairment a lifetime ECL is calculated.
BNG will consider financial assets with an investment grade rating to be of \u2018low credit risk\u2019. For bonds, BNG considers a BBB- or higher to be an investment grade. With regards to loans, the bank uses its internal counterparty credit rating to determine whether it is investment grade. Internal counterparty credit ratings are derived from a number of market sector specific internal rating models, which have been externally validated.
BNG applies an expert judgement approach when determining the stage 3 impairment figures. The approach is performed on an instrument level by the Financial Restructuring & Recovery department.
Historical analyses are performed to identify the key macro economic variables, which are provided by Moody's Analytics. In 2025 the macro economic factors applied in determining the probability of default for securitisations are the purchasing power parity conversion factor to official exchange ratio, the unemployment rate, and the real net exports of goods and services. For government bonds, the representative credit default swap is used. For products that do not fall under either securitisations or government bonds, the non-accelerating inflation rate of unemployment, the interest rate on 30-year government bonds, and the compensation of employees are applied.
The impact of high inflation and increased economic uncertainty is reflected in the decrease of domestic spending and use of consumable goods. In 2025 there were no significant events related to inflation in the sectors in which the bank operates or to individual clients relating to BNG\u2019s client portfolio. However, the bank closely monitors the impact of inflation, in particular the healthcare and energy sectors receive additional attention.
BNG has started to incorporate ESG credit risks in the internal control and risk management framework. To identify the material sectors for monitoring purposes, the bank is conducting an analysis per sector in which it operates, to define the material ESG-related credit risks. So far, the analysis demonstrates that most ESG-related credit risks are related to emissions and energy. BNG has not identified material impairment indications with respect to ESG risks. However, the bank has improved the model, and includes climate-related risks in the ECL calculation in the last quarter of 2025.
Government Bonds | \u00a0 | \u00a0 |
|---|---|---|
Macro economic variable | Horizon as at 31-12-2025 | Horizon as at 31-12-2024 |
Average CDS spread of 5 European governments | 3 years | 3 years |
Scenario | Weighting as at 31-12-2025 | Weighting as at 31-12-2024 |
Base scenario | 46% | 46% |
Upward scenario | 27% | 27% |
Downward scenario | 27% | 27% |
Securitisations | \u00a0 | \u00a0 |
|---|---|---|
Macro economic variable | Horizon as at 31-12-2025 | Horizon as at 31-12-2024 |
Purchasing power parity conversion factor to official exchange ratio (Eurozone) | 3 years | 3 years |
Unemployment Rate (Eurozone) | 3 years | 3 years |
Real net exports of goods and services (Eurozone) | 3 years | 3 years |
Scenario | Weighting as at 31-12-2025 | Weighting as at 31-12-2024 |
Base scenario | 46% | 46% |
Upward scenario | 27% | 27% |
Downward scenario | 27% | 27% |
Lending | \u00a0 | \u00a0 |
|---|---|---|
Macro economic variable | Horizon as at 31-12-2025 | Horizon as at 31-12-2024 |
Non-accelerating inflation rate of unemployment (NL) | 3 years | 3 years |
Interest rate on government bonds 30y (NL) | 3 years | 3 years |
Compensation of employees (NL) | 3 years | 3 years |
Scenario | Weighting as at 31-12-2025 | Weighting as at 31-12-2024 |
Base scenario | 46% | 46% |
Upward scenario | 27% | 27% |
Downward scenario | 27% | 27% |
BNG applies the following criteria to designate exposures as non-performing:
BNG considers that the obligor is unlikely to pay its credit obligations to the bank; and
the obligor is past due 90 days or more on any material credit obligation to the bank.
The bank employs the following indicators for \u2018Unlikeliness to pay\u2019:
the obligor\u2019s source of income is considered insufficient to meet its payment obligations;
there are indications that future cash flows are under pressure;
the obligor\u2019s debt ratio has increased significantly;
one or more covenants have been breached;
BNG has called upon a guarantee or seized collateral;
significant delayed payments to other creditors (recorded in a register);
there is a crisis in the obligor\u2019s market sector, in which the obligor is considered to be a weak party;
the obligor can no longer be active in its market sector as a result of its financial difficulties; and
another creditor has filed for the obligor\u2019s bankruptcy.
In order to measure the sensitivity of the credit loss allowances to changes in the input factors, different scenarios are determined to (re)calculate the size of the credit loss allowances.
In scenario A, the credit rating of all individual exposures subject to impairment are downgraded by 1 notch (e.g. from AAA to AA+). These (lower) credit ratings, as well as the accompanying PDs, are then applied in the staging assessment and the calculation of the credit loss allowances. As a result, a portion of the exposures migrated from stage 1 to stage 2. The EADs and LGDs are unchanged compared with the base line calculation.
In scenario B, the exposures which normally have an LGD of 0% are assigned a 10% LGD. The LGD of exposures that are normally assigned a 10%, 35% or 75% LGD remain unchanged. The EADs, credit ratings and PDs are also unchanged compared with the base line calculation.
In scenario C, the calculation of the credit loss allowances is performed using \u2018Through-the-Cycle\u2019 PDs rather than Point-in-Time PDs. In other words, PDs without incorporation of forward-looking macro economic information are used in the calculation. The EADs, credit ratings, stage levels and LGDs are unchanged compared with the base line calculation.
As per 31 December 2025 three different scenarios are used to calculate the sensitivity (in millions of euros) of the total credit loss allowances and are stated below.
31-12-2025 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|
| \u00a0 | Actual Balance | Scenario A | Scenario B | Scenario C |
Allowances | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Cash and balances held with central banks | - | - | - | - |
Amounts due from banks | 0 | 0 | 0 | 0 |
Financial assets at fair value through other comprehensive income | 0 | 0 | 0 | 0 |
Interest-bearing securities at amortised cost | 0 | 1 | 1 | 1 |
Loans and advances | 98 | 119 | 109 | 110 |
| \u00a0 | 98 | 120 | 110 | 111 |
Provision | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Off-balance sheet commitments | 0 | 1 | 0 | 0 |
31-12-2024 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|
| \u00a0 | Actual Balance | Scenario A | Scenario B | Scenario C |
Allowances | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Cash and balances held with central banks | - | - | - | - |
Amounts due from banks | 0 | 0 | 0 | 0 |
Financial assets at fair value through other comprehensive income | 0 | 0 | 0 | 0 |
Interest-bearing securities at amortised cost | 0 | 1 | 0 | 1 |
Loans and advances | 57 | 69 | 67 | 62 |
| \u00a0 | 57 | 70 | 67 | 63 |
Provision | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Off-balance sheet commitments | 1 | 2 | 2 | 1 |
The following audit fees were reported in the income statement:
(amounts in thousands of euros) | 2025 | 2024 |
|---|---|---|
Audit of the financial statements | 1,390 | 1,022 |
Other audit services | 331 | 245 |
Tax services | - | - |
Other non-audit services | - | - |
Total | 1,721 | 1,267 |
The fees listed above relate to the procedures applied to the Company and its consolidated group entities by accounting firms and external independent auditors as referred to in Section 1, subsection 1 of the Audit Firms Supervision Act (\u2018Wet toezicht accountantsorganisaties \u2013 Wta\u2019).
In the case of BNG this is only applicable to Dutch based accounting firms (PwC the Netherlands accountants (\u2018PwC NL\u2019), including its tax services and advisory groups) as BNG does not make use of foreign based accounting firms. The audit fees relate to the audit of the 2025 financial statements, regardless of whether the work was performed during the financial year.
Our independent auditor, PwC NL, has rendered, for the period to which our statutory audit relates, in addition to the audit of the statutory financial statements the following services to the company and its controlled entities:
Statutory audits of controlled entities;
Review of interim financial statements;
Audit of the regulatory returns for the Dutch Central Bank;
Assurance engagement credit claims for the Dutch Central Bank.
Assurance engagement on the sustainability report;
Comfort letters on annual update of debt issuance prospectus and drawdowns under the debt issuance programme;
Assurance engagement on the Deposit Garantee Scheme requirements.
31-12-2025 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|---|---|
| \u00a0 | Due on demand | up to 3 months | 3 - 12 months | 1 - 5 years | over 5 years | Total |
Cash and balances held with central banks | 131 | 1,700 | - | - | - | 1,831 |
Amounts due from banks | 2 | 7 | 80 | 339 | 276 | 704 |
Cash collateral posted | - | 3,721 | - | - | - | 3,721 |
Financial assets at fair value through the income statement | - | - | 82 | - | 203 | 285 |
Derivatives | - | 10 | 53 | 356 | 1,719 | 2,138 |
Financial assets at fair value through other comprehensive income | - | 131 | 229 | 6,393 | 5,042 | 11,795 |
Interest-bearing securities at amortised cost | - | 128 | 0 | 1,018 | 6,959 | 8,105 |
Loans and advances | 514 | 2,008 | 6,481 | 23,628 | 64,996 | 97,627 |
Value adjustments on loans in portfolio hedge accounting | - | 0 | -7 | -261 | -10,445 | -10,713 |
Current tax assets | - | - | - | - | - | - |
Other assets | - | 24 | - | - | - | 24 |
Total assets | 647 | 7,729 | 6,918 | 31,473 | 68,750 | 115,517 |
Amounts due to banks | - | 421 | - | 295 | 388 | 1,104 |
Cash collateral received | - | 710 | - | - | - | 710 |
Financial liabilities at fair value through the income statement | - | - | - | 61 | 171 | 232 |
Derivatives | - | 127 | 363 | 1,697 | 2,822 | 5,009 |
Debt securities | - | 3,931 | 9,483 | 39,082 | 41,884 | 94,380 |
Funds entrusted | 3,415 | 1,513 | 494 | 988 | 2,606 | 9,016 |
Subordinated debt | - | - | 10 | 11 | - | 21 |
Current tax liabilities | - | 30 | - | - | - | 30 |
Deferred tax liabilities | - | - | - | 1 | 2 | 3 |
Provisions | - | - | 16 | - | - | 16 |
Other liabilities | - | 61 | 7 | 11 | 101 | 180 |
Total liabilities | 3,415 | 6,793 | 10,373 | 42,146 | 47,974 | 110,701 |
31-12-2024 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|---|---|
| \u00a0 | Due on demand | up to 3 months | 3 - 12 months | 1 - 5 years | over 5 years | Total |
Cash and balances held with central banks | 424 | 6,201 | - | - | - | 6,625 |
Amounts due from banks | 2 | 19 | 76 | 344 | 363 | 804 |
Cash collateral posted | - | 3,545 | - | - | - | 3,545 |
Financial assets at fair value through the income statement | - | 11 | - | 84 | 662 | 757 |
Derivatives | - | 359 | 634 | 1,135 | 1,851 | 3,979 |
Financial assets at fair value through other comprehensive income | - | 109 | 432 | 4,602 | 6,179 | 11,322 |
Interest-bearing securities at amortised cost | - | 0 | 114 | 1,041 | 7,978 | 9,133 |
Loans and advances | 399 | 1,394 | 6,234 | 22,553 | 63,957 | 94,537 |
Value adjustments on loans in portfolio hedge accounting | - | -1 | -8 | -154 | -2,790 | -2,953 |
Current tax assets | - | 55 | 0 | - | - | 55 |
Other assets | - | 104 | - | - | - | 104 |
Total assets | 825 | 11,796 | 7,482 | 29,605 | 78,200 | 127,908 |
Amounts due to banks | 0 | 917 | - | 150 | 572 | 1,639 |
Cash collateral received | - | 1,533 | - | - | - | 1,533 |
Financial liabilities at fair value through the income statement | - | 22 | - | 67 | 165 | 254 |
Derivatives | - | 18 | 185 | 634 | 4,709 | 5,546 |
Debt securities | - | 8,692 | 12,673 | 38,229 | 43,789 | 103,383 |
Funds entrusted | 3,857 | 1,741 | 851 | 1,300 | 2,768 | 10,517 |
Subordinated debt | - | - | - | 19 | - | 19 |
Deferred tax liabilities | - | - | 2 | 8 | 29 | 39 |
Provisions | - | - | - | 4 | - | 4 |
Other liabilities | - | 88 | 8 | 26 | 108 | 230 |
Total liabilities | 3,857 | 13,011 | 13,719 | 40,437 | 52,140 | 123,164 |
31-12-2025 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|
| \u00a0 | Amortised cost | Fair value through profit or loss | Fair value through other comprehensive income | Total |
Cash and balances held with central banks | 1,831 | - | - | 1,831 |
Amounts due from banks | 704 | - | - | 704 |
Cash collateral posted | 3,721 | - | - | 3,721 |
Financial assets at fair value through the income statement | - | 285 | - | 285 |
Derivatives | - | 2,138 | - | 2,138 |
Financial assets at fair value through other comprehensive income | - | - | 11,795 | 11,795 |
Interest-bearing securities at amortised cost | 8,105 | - | - | 8,105 |
Loans and advances | 97,627 | - | - | 97,627 |
Value adjustments on loans in portfolio hedge accounting | -10,713 | - | - | -10,713 |
Total assets | 101,275 | 2,423 | 11,795 | 115,493 |
Amounts due to banks | 1,104 | - | - | 1,104 |
Cash collateral received | 710 | - | - | 710 |
Financial liabilities at fair value through the income statement | - | 232 | - | 232 |
Derivatives | - | 5,009 | - | 5,009 |
Debt securities | 94,380 | - | - | 94,380 |
Funds entrusted | 9,016 | - | - | 9,016 |
Subordinated debt | 21 | - | - | 21 |
Total liabilities | 105,231 | 5,241 | - | 110,472 |
31-12-2024 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|
| \u00a0 | Amortised cost | Fair value through profit or loss | Fair value through other comprehensive income | Total |
Cash and balances held with central banks | 6,625 | - | - | 6,625 |
Amounts due from banks | 804 | - | - | 804 |
Cash collateral posted | 3,545 | - | - | 3,545 |
Financial assets at fair value through the income statement | - | 757 | - | 757 |
Derivatives | - | 3,979 | - | 3,979 |
Financial assets at fair value through other comprehensive income | - | - | 11,322 | 11,322 |
Interest-bearing securities at amortised cost | 9,133 | - | - | 9,133 |
Loans and advances | 94,537 | - | - | 94,537 |
Value adjustments on loans in portfolio hedge accounting | -2,953 | - | - | -2,953 |
Total assets | 111,691 | 4,736 | 11,322 | 127,749 |
Amounts due to banks | 1,639 | - | - | 1,639 |
Cash collateral received | 1,533 | - | - | 1,533 |
Financial liabilities at fair value through the income statement | - | 254 | - | 254 |
Derivatives | - | 5,546 | - | 5,546 |
Debt securities | 103,383 | - | - | 103,383 |
Funds entrusted | 10,517 | - | - | 10,517 |
Subordinated debt | 19 | - | - | 19 |
Total liabilities | 117,091 | 5,800 | - | 122,891 |
2025 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|---|
| \u00a0 | Financial liabilities at fair value through the income statement | Debt securities | Sub- ordinated debt | Additional Tier 1 capital | Total |
Balance at 1 January 2025 | 254 | 103,383 | 19 | 309 | 103,965 |
Cash flows from financing activities | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
- Proceeds from financing activities | 10 | 315,887 | - | - | 315,897 |
- Repayments on financing activities | -6 | -320,836 | - | - | -320,842 |
- Interest and other cash flows | -21 | -1,778 | - | - | -1,799 |
- Compensation on Additional Tier 1 capital | - | - | - | -14 | -14 |
| \u00a0 | -17 | -6,727 | - | -14 | -6,758 |
Non-cash changes | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Unrealised results: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
- Foreign exchange movement | -3 | -839 | - | - | -842 |
- Fair value changes | -10 | -4,006 | - | - | -4,016 |
Realised results | 8 | 2,569 | 2 | - | 2,579 |
Movement to Other liabilities (derecognised but not yet repaid) | - | 0 | - | - | - |
| \u00a0 | -5 | -2,276 | 2 | - | -2,279 |
Compensation distributed from Retained earnings | \u00a0 | \u00a0 | \u00a0 | 14 | 14 |
Balance at 31 December 2025 | 232 | 94,380 | 21 | 309 | 94,942 |
2024 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|---|
| \u00a0 | Financial liabilities at fair value through the income statement | Debt securities | Sub- ordinated debt | Additional Tier 1 capital | Total |
Balance at 1 January 2024 | 260 | 93,039 | 18 | 309 | 93,626 |
Cash flows from financing activities | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
- Proceeds from financing activities | - | 342,715 | - | - | 342,715 |
- Repayments on financing activities | -1 | -337,080 | - | - | -337,081 |
- Interest and other cash flows | -6 | -1,456 | - | - | -1,462 |
- Compensation on Additional Tier 1 capital | - | - | - | -15 | -15 |
| \u00a0 | -7 | 4,179 | - | -15 | 4,157 |
Non-cash changes | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Unrealised results: | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
- Foreign exchange movement | -3 | 1,820 | - | - | 1,817 |
- Fair value changes | -5 | 1,825 | - | - | 1,820 |
Realised results | 9 | 2,520 | 1 | - | 2,530 |
Movement to Other liabilities (derecognised but not yet repaid) | - | - | - | - | - |
| \u00a0 | 1 | 6,165 | 1 | - | 6,167 |
Compensation distributed from Retained earnings | \u00a0 | \u00a0 | \u00a0 | 15 | 15 |
Balance at 31 December 2024 | 254 | 103,383 | 19 | 309 | 103,965 |
31-12-2025 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|---|---|
| \u00a0 | Nominal amount | Provision | ||||
| \u00a0 | Performing | Non-performing | Performing | Non-performing | ||
| \u00a0 | Stage 1 | Stage 2 | Stage 3 | Stage 1 | Stage 2 | Stage 3 |
Off-balance sheet commitments | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Contingent liabilities | 442 | 1 | 0 | 0 | 0 | - |
Revocable facilities | 5,117 | 63 | 23 | - | - | - |
Irrevocable facilities | 2,413 | 1 | 0 | 0 | 0 | - |
Total | 7,972 | 65 | 23 | 0 | 0 | - |
31-12-2024 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|---|---|
| \u00a0 | Nominal amount | Provision | ||||
| \u00a0 | Performing | Non-performing | Performing | Non-performing | ||
| \u00a0 | Stage 1 | Stage 2 | Stage 3 | Stage 1 | Stage 2 | Stage 3 |
Off-balance sheet commitments | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Contingent liabilities | 499 | 0 | 1 | - | - | -1 |
Revocable facilities | 5,296 | 72 | 14 | - | - | - |
Irrevocable facilities | 3,168 | 0 | 6 | - | - | - |
Total | 8,963 | 72 | 21 | - | - | -1 |
This includes all commitments arising from transactions for which the bank has issued guarantees on behalf of a third party. To a limited extent, these guarantees are covered by a counter guarantee from public authorities. These are mainly Letters of Credit with a remaining contractual maturity of more than five years. BNG records liabilities at the underlying principal amount that would need to be paid in the event of the borrower defaulting.
| \u00a0 | 31-12-2025 | 31-12-2024 |
|---|---|---|
Contingent liabilities | 442 | 501 |
| \u00a0 | \u00a0 | \u00a0 |
The fair value is the price (not adjusted for transaction costs) which, regardless of the intention or capability, would be received if an asset was sold or the price which would be paid if a liability was transferred in an orderly transaction between market participants at the measurement date under the current market conditions. The assumption is that the valuation is viewed from the perspective of market participants, whereby only the specific characteristics and limitations of the financial instrument are taken into consideration.
A distinction is made between three levels of fair value, with the nature of the input factors and their significance for the total valuation being decisive for the correct classification in the hierarchy.
Level 1: valuation based on (unadjusted) quoted market prices of the instrument itself or, if unavailable, of identical instruments, in an active market. A financial instrument is regarded as quoted in an active market if the quoted price is regularly available, and if these prices reflect current and regularly occurring arm\u2019s length market transactions. The quoted market prices for financial assets and liabilities are based on mid-market prices.
Level 2: valuation based on a valuation technique using directly/indirectly observable market data other than quoted market prices as used at Level 1. This category includes instruments with a valuation that uses quoted prices in an active market for comparable instruments, quoted prices for identical or comparable instruments in markets deemed to be less than active or other valuation techniques whereby all significant input variables are directly or indirectly observable from market data.
Level 3: valuation based on valuation techniques that make significant use of input data which are not publicly observable in the market. This category includes instruments with a valuation technique that uses input variables that are not based on observable market data and whereby the non-observable market data significantly influence the valuation of the instrument. This category also includes the instruments valued in accordance with the quoted prices for comparable instruments, whereby significant not publicly observable changes or presumptions are necessary for expressing the differences between the instruments.
Where possible, BNG uses quoted market prices (Level 1). Quoted market prices are based on bid prices (for financial assets) and ask prices (for financial liabilities). Using mid-market prices is permitted if the market risk of the financial assets and liabilities is offset. BNG uses mid-market prices on the reporting date for valuation purposes.
In many cases, the bank is reliant on theoretical valuations (Level 2). In such cases, the fair value is determined on the basis of valuation models and techniques that are customarily used in the financial sector. These are mostly models based on net present value calculations and option pricing models. The input for these models is based on direct or indirect objectively observable input data such as market prices, forward pricing, market-based yield curves for discounting, correlations, volatilities, cross-currency basis spreads, counterparty credit worthiness and other factors, estimates and assumptions which market parties would use to determine the price. The bank uses so-called spread curves to determine the fair value of financial instruments that involve credit and liquidity risk and for which a theoretical valuation is required. These spread curves are constructed on the basis of the relevant interest rate curve and a spread for credit and liquidity risk. The credit risk spread is dependent on the credit worthiness of the debtor, taking into account the collateral received, guarantees and maturities. The liquidity risk spread depends on the degree of marketability of the instrument. The risk profiles of individual clients and financial instruments are assessed at least once per quarter. If necessary, the credit-risk spread will be adjusted.
In determining the fair value of derivative transactions, a credit value adjustment (CVA) and a debit valuation adjustment (DVA) are applied to all derivative transactions with all clients and financial counterparties with which the bank does not have an agreement for the daily exchange of collateral. CVA and DVA are also applied to all derivative transactions with clients or counterparties with which the bank has an agreement for the daily exchange of collateral but where significant thresholds are applicable in determining the collateral amount.
The bank applies a spread over the relevant swap curve to determine its own credit risk: the \u2018own credit adjustment (OCA)\u2019. The OCA only relates to instruments included under Financial liabilities at fair value through the income statement.
Insofar as financial instruments have the character of a forward contract, official forward prices are used, including forward yield curves and forward exchange rates. In the case of complex instruments, the constituent parts of the instrument are measured separately on the basis of the above techniques and models. The fair value of the entire instrument is determined as the sum of the fair values of its constituent parts. BNG applies only recurring fair values, which are measured on an ongoing basis for processing in the financial position at the end of each reporting period.
| \u00a0 | 31-12-2025 | 31-12-2024 | ||
|---|---|---|---|---|
| \u00a0 | Balance sheet-value | Fair value | Balance sheet-value | Fair value |
Cash and balances held with central banks | 1,831 | 1,831 | 6,625 | 6,625 |
Amounts due from banks | 704 | 719 | 804 | 825 |
Cash collateral posted | 3,721 | 3,721 | 3,545 | 3,545 |
Financial assets at fair value through the income statement | 285 | 285 | 757 | 757 |
Derivatives | 2,138 | 2,138 | 3,979 | 3,979 |
Financial assets at fair value through other comprehensive income | 11,795 | 11,795 | 11,322 | 11,322 |
Interest-bearing securities at amortised cost | 8,105 | 8,088 | 9,133 | 8,901 |
Loans and advances | 97,627 | 85,983 | 94,537 | 88,342 |
Total financial assets | 126,206 | 114,560 | 130,702 | 124,296 |
Amounts due to banks | 1,104 | 1,090 | 1,639 | 1,616 |
Cash collateral received | 710 | 710 | 1,533 | 1,533 |
Financial liabilities at fair value through the income statement | 232 | 232 | 254 | 254 |
Derivatives | 5,009 | 5,009 | 5,546 | 5,546 |
Debt securities | 94,380 | 93,859 | 103,383 | 101,738 |
Funds entrusted | 9,016 | 8,895 | 10,517 | 10,365 |
Subordinated debt | 21 | 21 | 19 | 21 |
Total financial liabilities | 110,472 | 109,816 | 122,891 | 121,073 |
When effecting a transaction, the fair value hierarchy is determined on the basis of the relevant characteristics of the valuation, with the nature of the input factors and their significance for the total valuation being decisive for the classification. The classification takes place on the basis of the lowest input level that is significant for the fair value in the transaction as a whole.
Significance is assessed by determining the influence of non-observable input factors on the outcome of the total valuation, with due regard for the range of possible alternative assumptions concerning those non-observable input factors. Each quarter, the classification of each transaction is assessed and adjusted where necessary.
The following table provides an overview of the fair value hierarchy for transactions recognised at fair value.
31-12-2025 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|
| \u00a0 | Level 1 | Level 2 | Level 3 | Total |
Financial assets at fair value through the income statement | 0 | 277 | 8 | 285 |
Derivatives | - | 2,138 | - | 2,138 |
Financial assets at fair value through other comprehensive income | 11,716 | 79 | - | 11,795 |
Total financial assets | 11,716 | 2,494 | 8 | 14,218 |
Financial liabilities at fair value through the income statement | - | 232 | - | 232 |
Derivatives | - | 5,009 | - | 5,009 |
Total financial liabilities | 0 | 5,241 | - | 5,241 |
31-12-2024 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|
| \u00a0 | Level 1 | Level 2 | Level 3 | Total |
Financial assets at fair value through the income statement | 57 | 692 | 8 | 757 |
Derivatives | - | 3,979 | - | 3,979 |
Financial assets at fair value through other comprehensive income | 11,243 | 79 | - | 11,322 |
Total financial assets | 11,300 | 4,750 | 8 | 16,058 |
Financial liabilities at fair value through the income statement | 12 | 242 | - | 254 |
Derivatives | - | 5,546 | - | 5,546 |
Total financial liabilities | 12 | 5,788 | - | 5,800 |
As per 31 december 2025 one asset is stated under Level 3, this is a subordinated loan where the interest rate risk has been hedged with a swap. This is a structured interest-bearing security that is rarely traded in the market. Therefore, the observable market data available for similar securities is not fully representative of the current fair value. The fair value of this transaction is determined on the basis of public market data that is adjusted using significant input variables not publicly observable in the market.
| \u00a0 | 2025 | 2024 |
|---|---|---|
| \u00a0 | Level 3 Fair value | |
Balance as at 1 January | 8 | 9 |
Gains/losses in the income statement | 0 | 0 |
Gains/losses in the comprehensive income statements | - | - |
Purchases, sales, issues and settlements | 0 | -1 |
Transfers in or out Level 3 fair value hierarchy | - | - |
Balance as at 31 december | 8 | 8 |
The table below provides an overview of the way in which the fair value is determined for transactions recognised at amortised cost in the balance sheet on the basis of the hierarchical classification referred to above.
31-12-2025 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|
| \u00a0 | Level 1 | Level 2 | Level 3 | Total |
Cash and balances held with central banks | 1,831 | - | - | 1,831 |
Amounts due from banks | 2 | 717 | - | 719 |
Cash collateral posted | - | 3,721 | - | 3,721 |
Interest-bearing securities at amortised cost | 3,381 | 4,492 | 215 | 8,088 |
Loans and advances | 514 | 78,332 | 7,137 | 85,983 |
Total financial assets | 5,728 | 87,262 | 7,352 | 100,342 |
Amounts due to banks | 0 | 1,090 | - | 1,090 |
Cash collateral received | - | 710 | - | 710 |
Debt securities | 76,721 | 17,138 | - | 93,859 |
Funds entrusted | 3,423 | 5,186 | 286 | 8,895 |
Subordinated debt | - | 21 | - | 21 |
Total financial liabilities | 80,144 | 24,145 | 286 | 104,575 |
31-12-2024 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|
| \u00a0 | Level 1 | Level 2 | Level 3 | Total |
Cash and balances held with central banks | 6,625 | - | - | 6,625 |
Amounts due from banks | 2 | 823 | - | 825 |
Cash collateral posted | - | 3,545 | - | 3,545 |
Interest-bearing securities at amortised cost | 3,332 | 5,336 | 233 | 8,901 |
Loans and advances | 399 | 80,611 | 7,332 | 88,342 |
Total financial assets | 10,358 | 90,315 | 7,565 | 108,238 |
Amounts due to banks | 0 | 1,616 | - | 1,616 |
Cash collateral received | - | 1,533 | - | 1,533 |
Debt securities | 86,527 | 15,211 | - | 101,738 |
Funds entrusted | 3,857 | 6,133 | 375 | 10,365 |
Subordinated debt | - | 21 | - | 21 |
Total financial liabilities | 90,384 | 24,514 | 375 | 115,273 |
The financial assets at amortised cost under Level 3 mainly relate to loans and advances subject to solvency requirements to BNG\u2019s statutory market parties. Loans and advances to statutory counterparties under government guarantees are included in Level 2, on account of the strong correlation with bonds issued by the Dutch State. The financial liabilities at amortised cost under Level 1 mainly consist of tradable benchmark bonds issued by BNG (Debt securities item).
", "dimensions": { "concept": "ifrs-full:DisclosureOfFairValueMeasurementExplanatory", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i6755": { "value": "The fair value is the price (not adjusted for transaction costs) which, regardless of the intention or capability, would be received if an asset was sold or the price which would be paid if a liability was transferred in an orderly transaction between market participants at the measurement date under the current market conditions. The assumption is that the valuation is viewed from the perspective of market participants, whereby only the specific characteristics and limitations of the financial instrument are taken into consideration.
A distinction is made between three levels of fair value, with the nature of the input factors and their significance for the total valuation being decisive for the correct classification in the hierarchy.
Level 1: valuation based on (unadjusted) quoted market prices of the instrument itself or, if unavailable, of identical instruments, in an active market. A financial instrument is regarded as quoted in an active market if the quoted price is regularly available, and if these prices reflect current and regularly occurring arm\u2019s length market transactions. The quoted market prices for financial assets and liabilities are based on mid-market prices.
Level 2: valuation based on a valuation technique using directly/indirectly observable market data other than quoted market prices as used at Level 1. This category includes instruments with a valuation that uses quoted prices in an active market for comparable instruments, quoted prices for identical or comparable instruments in markets deemed to be less than active or other valuation techniques whereby all significant input variables are directly or indirectly observable from market data.
Level 3: valuation based on valuation techniques that make significant use of input data which are not publicly observable in the market. This category includes instruments with a valuation technique that uses input variables that are not based on observable market data and whereby the non-observable market data significantly influence the valuation of the instrument. This category also includes the instruments valued in accordance with the quoted prices for comparable instruments, whereby significant not publicly observable changes or presumptions are necessary for expressing the differences between the instruments.
Where possible, BNG uses quoted market prices (Level 1). Quoted market prices are based on bid prices (for financial assets) and ask prices (for financial liabilities). Using mid-market prices is permitted if the market risk of the financial assets and liabilities is offset. BNG uses mid-market prices on the reporting date for valuation purposes.
In many cases, the bank is reliant on theoretical valuations (Level 2). In such cases, the fair value is determined on the basis of valuation models and techniques that are customarily used in the financial sector. These are mostly models based on net present value calculations and option pricing models. The input for these models is based on direct or indirect objectively observable input data such as market prices, forward pricing, market-based yield curves for discounting, correlations, volatilities, cross-currency basis spreads, counterparty credit worthiness and other factors, estimates and assumptions which market parties would use to determine the price. The bank uses so-called spread curves to determine the fair value of financial instruments that involve credit and liquidity risk and for which a theoretical valuation is required. These spread curves are constructed on the basis of the relevant interest rate curve and a spread for credit and liquidity risk. The credit risk spread is dependent on the credit worthiness of the debtor, taking into account the collateral received, guarantees and maturities. The liquidity risk spread depends on the degree of marketability of the instrument. The risk profiles of individual clients and financial instruments are assessed at least once per quarter. If necessary, the credit-risk spread will be adjusted.
In determining the fair value of derivative transactions, a credit value adjustment (CVA) and a debit valuation adjustment (DVA) are applied to all derivative transactions with all clients and financial counterparties with which the bank does not have an agreement for the daily exchange of collateral. CVA and DVA are also applied to all derivative transactions with clients or counterparties with which the bank has an agreement for the daily exchange of collateral but where significant thresholds are applicable in determining the collateral amount.
The bank applies a spread over the relevant swap curve to determine its own credit risk: the \u2018own credit adjustment (OCA)\u2019. The OCA only relates to instruments included under Financial liabilities at fair value through the income statement.
Insofar as financial instruments have the character of a forward contract, official forward prices are used, including forward yield curves and forward exchange rates. In the case of complex instruments, the constituent parts of the instrument are measured separately on the basis of the above techniques and models. The fair value of the entire instrument is determined as the sum of the fair values of its constituent parts. BNG applies only recurring fair values, which are measured on an ongoing basis for processing in the financial position at the end of each reporting period.
| \u00a0 | 31-12-2025 | 31-12-2024 | ||
|---|---|---|---|---|
| \u00a0 | Balance sheet-value | Fair value | Balance sheet-value | Fair value |
Cash and balances held with central banks | 1,831 | 1,831 | 6,625 | 6,625 |
Amounts due from banks | 704 | 719 | 804 | 825 |
Cash collateral posted | 3,721 | 3,721 | 3,545 | 3,545 |
Financial assets at fair value through the income statement | 285 | 285 | 757 | 757 |
Derivatives | 2,138 | 2,138 | 3,979 | 3,979 |
Financial assets at fair value through other comprehensive income | 11,795 | 11,795 | 11,322 | 11,322 |
Interest-bearing securities at amortised cost | 8,105 | 8,088 | 9,133 | 8,901 |
Loans and advances | 97,627 | 85,983 | 94,537 | 88,342 |
Total financial assets | 126,206 | 114,560 | 130,702 | 124,296 |
Amounts due to banks | 1,104 | 1,090 | 1,639 | 1,616 |
Cash collateral received | 710 | 710 | 1,533 | 1,533 |
Financial liabilities at fair value through the income statement | 232 | 232 | 254 | 254 |
Derivatives | 5,009 | 5,009 | 5,546 | 5,546 |
Debt securities | 94,380 | 93,859 | 103,383 | 101,738 |
Funds entrusted | 9,016 | 8,895 | 10,517 | 10,365 |
Subordinated debt | 21 | 21 | 19 | 21 |
Total financial liabilities | 110,472 | 109,816 | 122,891 | 121,073 |
When effecting a transaction, the fair value hierarchy is determined on the basis of the relevant characteristics of the valuation, with the nature of the input factors and their significance for the total valuation being decisive for the classification. The classification takes place on the basis of the lowest input level that is significant for the fair value in the transaction as a whole.
Significance is assessed by determining the influence of non-observable input factors on the outcome of the total valuation, with due regard for the range of possible alternative assumptions concerning those non-observable input factors. Each quarter, the classification of each transaction is assessed and adjusted where necessary.
The following table provides an overview of the fair value hierarchy for transactions recognised at fair value.
31-12-2025 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|
| \u00a0 | Level 1 | Level 2 | Level 3 | Total |
Financial assets at fair value through the income statement | 0 | 277 | 8 | 285 |
Derivatives | - | 2,138 | - | 2,138 |
Financial assets at fair value through other comprehensive income | 11,716 | 79 | - | 11,795 |
Total financial assets | 11,716 | 2,494 | 8 | 14,218 |
Financial liabilities at fair value through the income statement | - | 232 | - | 232 |
Derivatives | - | 5,009 | - | 5,009 |
Total financial liabilities | 0 | 5,241 | - | 5,241 |
31-12-2024 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|
| \u00a0 | Level 1 | Level 2 | Level 3 | Total |
Financial assets at fair value through the income statement | 57 | 692 | 8 | 757 |
Derivatives | - | 3,979 | - | 3,979 |
Financial assets at fair value through other comprehensive income | 11,243 | 79 | - | 11,322 |
Total financial assets | 11,300 | 4,750 | 8 | 16,058 |
Financial liabilities at fair value through the income statement | 12 | 242 | - | 254 |
Derivatives | - | 5,546 | - | 5,546 |
Total financial liabilities | 12 | 5,788 | - | 5,800 |
As per 31 december 2025 one asset is stated under Level 3, this is a subordinated loan where the interest rate risk has been hedged with a swap. This is a structured interest-bearing security that is rarely traded in the market. Therefore, the observable market data available for similar securities is not fully representative of the current fair value. The fair value of this transaction is determined on the basis of public market data that is adjusted using significant input variables not publicly observable in the market.
| \u00a0 | 2025 | 2024 |
|---|---|---|
| \u00a0 | Level 3 Fair value | |
Balance as at 1 January | 8 | 9 |
Gains/losses in the income statement | 0 | 0 |
Gains/losses in the comprehensive income statements | - | - |
Purchases, sales, issues and settlements | 0 | -1 |
Transfers in or out Level 3 fair value hierarchy | - | - |
Balance as at 31 december | 8 | 8 |
The table below provides an overview of the way in which the fair value is determined for transactions recognised at amortised cost in the balance sheet on the basis of the hierarchical classification referred to above.
31-12-2025 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|
| \u00a0 | Level 1 | Level 2 | Level 3 | Total |
Cash and balances held with central banks | 1,831 | - | - | 1,831 |
Amounts due from banks | 2 | 717 | - | 719 |
Cash collateral posted | - | 3,721 | - | 3,721 |
Interest-bearing securities at amortised cost | 3,381 | 4,492 | 215 | 8,088 |
Loans and advances | 514 | 78,332 | 7,137 | 85,983 |
Total financial assets | 5,728 | 87,262 | 7,352 | 100,342 |
Amounts due to banks | 0 | 1,090 | - | 1,090 |
Cash collateral received | - | 710 | - | 710 |
Debt securities | 76,721 | 17,138 | - | 93,859 |
Funds entrusted | 3,423 | 5,186 | 286 | 8,895 |
Subordinated debt | - | 21 | - | 21 |
Total financial liabilities | 80,144 | 24,145 | 286 | 104,575 |
31-12-2024 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|
| \u00a0 | Level 1 | Level 2 | Level 3 | Total |
Cash and balances held with central banks | 6,625 | - | - | 6,625 |
Amounts due from banks | 2 | 823 | - | 825 |
Cash collateral posted | - | 3,545 | - | 3,545 |
Interest-bearing securities at amortised cost | 3,332 | 5,336 | 233 | 8,901 |
Loans and advances | 399 | 80,611 | 7,332 | 88,342 |
Total financial assets | 10,358 | 90,315 | 7,565 | 108,238 |
Amounts due to banks | 0 | 1,616 | - | 1,616 |
Cash collateral received | - | 1,533 | - | 1,533 |
Debt securities | 86,527 | 15,211 | - | 101,738 |
Funds entrusted | 3,857 | 6,133 | 375 | 10,365 |
Subordinated debt | - | 21 | - | 21 |
Total financial liabilities | 90,384 | 24,514 | 375 | 115,273 |
The financial assets at amortised cost under Level 3 mainly relate to loans and advances subject to solvency requirements to BNG\u2019s statutory market parties. Loans and advances to statutory counterparties under government guarantees are included in Level 2, on account of the strong correlation with bonds issued by the Dutch State. The financial liabilities at amortised cost under Level 1 mainly consist of tradable benchmark bonds issued by BNG (Debt securities item).
", "dimensions": { "concept": "ifrs-full:DisclosureOfFairValueOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i6756": { "value": "The process of accepting and controlling risks is inherent to the day-to-day operations of any bank. In order to conduct its operations, a bank must accept a certain amount of credit, market, liquidity and operational risk. This section provides an overview of the main characteristics of the risk profile of BNG and only covers the risk management practices that directly impact the financial statements.
BNG is operating in a highly complex environment and is subject to national and international rules and regulations. Although the bank spends significant effort to ensure compliance to all relevant rules and regulations, the implementation process is prone to human errors that cannot be completely prevented.
Credit risk is defined as the risk of losses in earnings or capital resulting from the potential risk that a borrower or a counterparty will fail to meet its obligations in accordance with agreed terms. It includes counterparty risk, settlement risk and concentration risk. The bank is working on integrating climate-related risks within the credit risk framework. Currently a method is developed. This has limited impact on the current financial statements.
The total gross exposure value for credit risk consists of the total balance sheet value of the assets, adjusted for the balance sheet value of derivatives, cash collateral posted for either derivative transactions or secured financing transactions and receivables related to Settle to Market (STM) derivative contracts under the Amounts due from banks item. The gross exposure value for off-balance sheet commitments is included, as well as the exposure value for counterparty credit risk (divided into derivative and secured financing transactions). The table below provides insight into the total gross credit risk exposure value.
| \u00a0 | 31-12-2025 | 31-12-2024 |
|---|---|---|
Balance sheet total | 115,564 | 127,941 |
-/- Derivatives | -2,138 | -3,979 |
-/- Cash collateral posted | -3,721 | -3,545 |
Total on-balance sheet exposure | 109,705 | 120,417 |
| \u00a0 | \u00a0 | \u00a0 |
Total off-balance sheet exposure | 8,060 | 9,058 |
| \u00a0 | \u00a0 | \u00a0 |
Exposure value for derivatives | 1,868 | 2,283 |
Exposure value for secured financing transactions | 155 | 42 |
Total counterparty credit risk exposure | 2,024 | 2,325 |
Total gross exposure | 119,789 | 131,800 |
As at 31 December 2025, the balance sheet value of the loans granted to or guaranteed by public authorities, the WSW Housing guarantee fund and the WfZ Healthcare guarantee fund in the Loans and advances balance sheet item totalled EUR 89.0 billion (2024: EUR 85.7 billion). The contingent liabilities and the irrevocable facilities are explained in the section \u2018Off-balance sheet positions\u2019. Section 'Encumbered financial assets and liabilities' indicates which parts of the financial assets are not freely disposable.
The calculation of the market value of financial assets and financial liabilities at fair value through the income statement includes a credit and liquidity risk spread. Changes in value due to credit-risk and liquidity-risk fluctuations are derived from changes in these spreads. The risk profiles of individual customers and financial instruments are periodically assessed. If necessary, the credit-risk spread is adjusted for the purpose of valuation.
Cumulative changes in the market value of financial assets at fair value through the income statement as a result of adjusted credit and liquidity risk spreads totalled EUR 119 million negative (2024: EUR 116 million negative). The decrease is mainly attributable to the disposal of 4 (Inflation-Linked Bonds) investment which had a cumulative negative impact of EUR 71 million (2024: EUR 59 million negative). Cumulative changes in the market value of financial liabilities at fair value through the income statement as a result of adjusted credit and liquidity risk spreads totalled EUR 19 million positive (2024: EUR 28 million positive) and amounted to EUR 9 million negative for 2025 (2024: EUR 14 million positive). Financial liabilities at fair value through the income statement are recognised on the relevant funding curve including a mark-up for \u2018own credit risk\u2019 in the accounts.
The bank is exposed to counterparty risk in relation to public sector entities (loans and advances), financial counterparties (derivatives) and issuers of interest-bearing securities in which the bank has invested. BNG applies the following credit risk mitigation measures:
Guarantees received from a central or local authority or by the guarantee funds WSW (Social Housing) and WfZ (Healthcare). Because loans subject to solvency requirements are often extended under partial of full guarantees or suretyships, the loan remains partly or fully zero-risk-weighted on balance for BNG (see the section on statutory market parties).
Other forms of security such as pledges and mortgages are used to minimise possible losses due to credit risks. The potential risk-reducing effect, however, is not used in the calculation of the regulatory capital requirement.
Bilateral netting and collateral agreements based on a daily collateral exchange with financial counterparties, also the section on financial counterparties.
The bank\u2019s Articles of Association restrict lending to parties subject to some form of government involvement. As a result, the credit portfolio is largely comprised of zero-risk-weighted loans and advances provided to or guaranteed by the Dutch government.
Lending is subject to initial and periodic credit assessment. This contains a detailed assessment of the credit worthiness of the client concerned, based in part on the bank\u2019s own internal rating model. Additionally, the bank has an internal risk assessment process for tailored transactions that includes operational risk elements. Moreover, the bank uses extensive qualitative product descriptions, in which the appropriateness of the product for different types of clients is made explicit.
Most of BNG\u2019s clients are not rated by external rating agencies, such as Moody\u2019s, Fitch or S&P. The bank applies internally developed rating models to assess credit worthiness of clients. These expert models are sector specific and subject to periodic review and validation in accordance with the banks\u2019 model governance policy. These models are not applied for capital calculations under Pillar I, where the bank uses the Standardised approach.
The significance of the internal ratings is the following:
Internal rating | Description |
|---|---|
0 | Zero risk-weighted lending. |
1 through 11 | The credit risk is deemed acceptable. A regular annual review is performed. |
12 through 13 | Watch list: there is an increased credit risk. A review takes place at least twice a year. |
14 through 16 | Financial restructuring and recovering department: there is an increased credit risk. At least three times a year, a report on these debtors is submitted to the Executive Board. |
17 through 21 | Financial restructuring and recovering department: there is an increased credit risk and/or the debtor repeatedly fails to fulfil the payment obligations and/or there is no expectation of continuity. At least three times a year, a report on these debtors is submitted to the Executive Board. |
Forbearance concerns credit agreements for which the credit conditions have been amended in the debtor\u2019s favour as a result of the debtor\u2019s precarious financial position, so as to enable it to fulfil its obligations.
31-12-2025 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|
| \u00a0 | Total exposure | Of which: Forborne | in % of total | |
| \u00a0 | Gross of impairment | Net of impairment | ||
Financial assets (excl. derivatives) | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Cash and balances held with central banks | 1,831 | - | - | 0.0% |
Amounts due from banks | 704 | - | - | 0.0% |
Cash collateral posted | 3,721 | - | - | 0.0% |
Financial assets at fair value through the income statement | 285 | - | - | 0.0% |
Financial assets at fair value through other comprehensive income | 11,795 | - | - | 0.0% |
Interest-bearing securities at amortised cost | 8,105 | - | - | 0.0% |
Loans and advances | 97,627 | 232 | 209 | 0.2% |
| \u00a0 | 124,068 | 232 | 209 | 0.2% |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Off-balance sheet commitments | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Contingent liabilities | 442 | - | - | 0.0% |
Revocable facilities | 5,204 | 30 | 30 | 0.6% |
Irrevocable facilities | 2,414 | - | - | 0.0% |
| \u00a0 | 8,060 | 30 | 30 | 0.4% |
31-12-2024 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|
| \u00a0 | Total exposure | Of which: Forborne | in % of total | |
| \u00a0 | Gross of impairment | Net of impairment | ||
Financial assets (excl. derivatives) | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Cash and balances held with central banks | 6,625 | - | - | 0.0% |
Amounts due from banks | 804 | - | - | 0.0% |
Cash collateral posted | 3,545 | - | - | 0.0% |
Financial assets at fair value through the income statement | 757 | - | - | 0.0% |
Financial assets at fair value through other comprehensive income | 11,322 | - | - | 0.0% |
Interest-bearing securities at amortised cost | 9,133 | - | - | 0.0% |
Loans and advances | 94,537 | 346 | 318 | 0.4% |
| \u00a0 | 126,723 | 346 | 318 | 0.3% |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Off-balance sheet commitments | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Contingent liabilities | 501 | - | - | 0.0% |
Revocable facilities | 5,383 | 15 | 15 | 0.3% |
Irrevocable facilities | 3,174 | 6 | 6 | 0.2% |
| \u00a0 | 9,058 | 21 | 21 | 0.2% |
The financial assets of which contractual terms have been changed as a result of the debtor\u2019s unfavourable financial position amounted to EUR 232 million as at 31 December 2025 (year-end 2024: EUR 346 million). The increase is entirely due to the newly recorded debtors. The share of forborne exposure in the total portfolio is 0.2% (year-end 2024: 0.3%) and concerns 8 debtors (year-end 2024: 12 debtors). Forbearance is used as a backstop indicator in the impairment staging assessment, as a result of which all forborne exposures are classified in impairment stage 2.
An exposure classified as non-performing can once again be regarded as performing if all of the following conditions are met:
The debtor once again complies with all contractual terms (no default);
The debtor\u2019s situation has improved to the extent that the debtor is able to meet payment obligations according to an existing or adjusted payment profile (\u2018likely to pay\u2019); and
The debtor has no payment arrears exceeding 90 days.
The tables below provide insight into the total exposure in financial assets (excluding derivatives) and off-balance sheet commitments, indicating which portions have been classified as non-performing.
31-12-2025 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|
| \u00a0 | Total exposure | Of which: Non-performing | in % of total | |
| \u00a0 | Gross of impairment | Net of impairment | ||
Financial assets (excl. derivatives) | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Cash and balances held with central banks | 1,831 | - | - | 0.0% |
Amounts due from banks | 704 | - | - | 0.0% |
Cash collateral posted | 3,721 | - | - | 0.0% |
Financial assets at fair value through the income statement | 285 | - | - | 0.0% |
Financial assets at fair value through other comprehensive income | 11,795 | - | - | 0.0% |
Interest-bearing securities at amortised cost | 8,105 | - | - | 0.0% |
Loans and advances | 97,627 | 351 | 280 | 0.4% |
| \u00a0 | 124,068 | 351 | 280 | 0.3% |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Off-balance sheet commitments | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Contingent liabilities | 442 | 23 | 23 | 5.2% |
Revocable facilities | 5,204 | 0 | 0 | 0.0% |
Irrevocable facilities | 2,414 | 0 | 0 | 0.0% |
| \u00a0 | 8,060 | 23 | 23 | 0.3% |
31-12-2024 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|
| \u00a0 | Total exposure | Of which: Non-performing | in % of total | |
| \u00a0 | Gross of impairment | Net of impairment | ||
Financial assets (excl. derivatives) | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Cash and balances held with central banks | 6,625 | - | - | 0.0% |
Amounts due from banks | 804 | - | - | 0.0% |
Cash collateral posted | 3,545 | - | - | 0.0% |
Financial assets at fair value through the income statement | 757 | - | - | 0.0% |
Financial assets at fair value through other comprehensive income | 11,322 | - | - | 0.0% |
Interest-bearing securities at amortised cost | 9,133 | - | - | 0.0% |
Loans and advances | 94,537 | 460 | 416 | 0.5% |
| \u00a0 | 126,723 | 460 | 416 | 0.4% |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Off-balance sheet commitments | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Contingent liabilities | 501 | 1 | 0 | 0.2% |
Revocable facilities | 5,383 | 14 | 14 | 0.3% |
Irrevocable facilities | 3,174 | 6 | 6 | 0.2% |
| \u00a0 | 9,058 | 21 | 20 | 0.2% |
On-balance non-performing exposure totalled EUR\u00a0351\u00a0million as at 31 December 2025 (year-end 2024: EUR 460 million). The decrease of this exposure in 2025 is mainly caused by the settlement of two obligors in Stage 3. The total non-performing exposure remains low in relation to the total exposure of the portfolio of BNG. At year-end 2025 the share of non-performing exposure in the total portfolio is 0.3% (year-end 2024: 0.4%) and concerns 30 debtors (year-end 2024: 21 debtors). BNG received EUR 154 million of government guarantees (2024: EUR\u00a0279\u00a0million) with respect to non-performing exposures.
The following table shows the development of non-performing exposures.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Total non-performing exposure as at 1 January | 460 | 598 |
Change in existing non-performing exposures | -21 | 1 |
Shift from performing to non-performing exposure | 81 | 65 |
Shift from non-performing to performing exposure | -108 | -138 |
Repayments on and settlement of non-performing exposure | -61 | -48 |
Write-off | - | -18 |
Total non-performing exposure as at 31 December | 351 | 460 |
The following table comprises past due exposures that are not included in impairment stage 3 under IFRS 9.
| \u00a0 | 31-12-2025 | 31-12-2024 |
|---|---|---|
Less than 31 days | 2 | 101 |
31 through 60 days | - | - |
61 through 90 days | - | - |
Over 90 days | - | - |
Closing balance | 2 | 101 |
The impairments of financial assets are explained in note 31.
BNG uses the external ratings awarded by rating agencies, specifically S&P, Moody\u2019s, Fitch and DBRS. In determining the capital requirement, the bank uses the ratings of these four agencies if such ratings are available. The ratings relate either to the counterparty or specifically to a securities purchased.
The market risks associated with loans to clients are mitigated primarily through derivative transactions with financial counterparties. The bank only conducts business with financial counterparties that have been rated by an external agency. Financial counterparties are periodically assessed for credit worthiness. If necessary, the limit on the maximum exposure to such a counterparty is re-adjusted accordingly.
| \u00a0 | 31-12-2025 | 31-12-2024 | ||
|---|---|---|---|---|
Exposure values for derivatives | Exposure value | Risk-weighted exposure amount | Exposure value | Risk-weighted exposure amount |
Regional governments or local authorities | 55 | \u00a0 | 167 | - |
Public sector entities | 0 | \u00a0 | 1 | 0 |
Institutions | 893 | 186 | 1,208 | 310 |
Corporates | 920 | 287 | 907 | 384 |
Total | 1,868 | 473 | 2,283 | 694 |
In order to reduce credit risk, netting agreements are in place with financial counterparties with which BNG actively enters into derivatives transactions or (reverse) repos. In addition, collateral agreements are concluded. These ensure that market value developments are mitigated on a daily basis by collateral. The agreements are updated where necessary in response to changing market circumstances, market practices and regulatory changes. The following table shows the gross positions before balance sheet netting and if the collateral agreements were taken into account.
31-12-2025 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|
| \u00a0 | Derivatives (stated as assets) | Derivatives (stated as liabilities) | Net |
Netting of financial assets and financial liabilities (derivatives) | \u00a0 | \u00a0 | \u00a0 |
Gross value of financial assets and liabilities before balance sheet netting | 15,977 | -18,848 | -2,871 |
Gross value of the financial assets and liabilities to be netted | -13,839 | 13,839 | 0 |
Balance sheet value of financial assets and liabilities (after netting) | 2,138 | -5,009 | -2,871 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Value of financial netting instrument that does not comply with IAS 32 (netting of derivatives with the same counterparty) for netting purposes | -1,351 | 1,351 | 0 |
Exposure before collateral | 787 | -3,658 | -2,871 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Value of financial collateral that does not comply with IAS 32 for netting purposes | -710 | 3,721 | 3,011 |
Net exposure | 77 | 63 | 140 |
31-12-2024 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|
| \u00a0 | Derivatives (stated as assets) | Derivatives (stated as liabilities) | Net |
Netting of financial assets and financial liabilities (derivatives) | \u00a0 | \u00a0 | \u00a0 |
Gross value of financial assets and liabilities before balance sheet netting | 14,874 | -16,441 | -1,567 |
Gross value of the financial assets and liabilities to be netted | -10,895 | 10,895 | 0 |
Balance sheet value of financial assets and liabilities (after netting) | 3,979 | -5,546 | -1,567 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Value of financial netting instrument that does not comply with IAS 32 (netting of derivatives with the same counterparty) for netting purposes | -2,111 | 2,111 | 0 |
Exposure before collateral | 1,868 | -3,435 | -1,567 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Value of financial collateral that does not comply with IAS 32 for netting purposes | -1,533 | 3,545 | 2,012 |
Net exposure | 335 | 110 | 445 |
At year-end 2025, the collateral posted for derivative transactions amounted to EUR\u00a03.6 billion (2024: EUR 4.1 billion). The deterioration of BNG\u2019s rating by three notches would not increase this amount (2024: EUR nil). The strength of the bank\u2019s liquidity position is sufficient to absorb fluctuations in collateral obligations.
| \u00a0 | 31-12-2025 | 31-12-2024 | ||
|---|---|---|---|---|
| \u00a0 | Reverse repos (assets) | Repos (liabilities) | Reverse repos (assets) | Repos (liabilities) |
Netting of reverse repo and repo agreements subject to enforceable master netting agreements | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Gross balance sheet value before balance sheet netting | 2,485 | -2,485 | 2,112 | -2,110 |
Balance sheet netting of reverse repo and repo agreements | -2,485 | 2,485 | -2,110 | 2,110 |
Net balance sheet value of financial assets and liabilities | 0 | 0 | 2 | 0 |
BNG\u2019s IBS portfolio is held predominantly for liquidity management purposes. The portfolio is composed of high-quality bonds, the majority of which are accepted as collateral by the ECB. BNG\u2019s total IBS portfolio can be subdivided into a liquidity portfolio and an Asset & Liability Management (ALM) portfolio. The liquidity portfolio consists exclusively of highly negotiable securities and is subdivided according to the various LCR levels. The ALM portfolio is subdivided according to type of security. Each month, the development of the portfolio is reported to and evaluated by the Investment Committee. Using factors such as external ratings and \u2013 in part \u2013 internal ratings, the bank monitors the development on an individual basis. All assets within these portfolios undergo an impairment analysis twice a year. Asset backed securities (including RMBS) are subject to a due diligence review process.
The amounts shown below per rating category are remaining principal amounts in millions of euros. The total balance sheet value is also shown in the final column.
31-12-2025 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|---|---|---|
| \u00a0 | AAA | AA | A | BBB | Non-invest- ment grade | Total nominal value | Total balance sheet value |
Liquidity portfolio | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Level I \u2013 Government/ Supranational | 5,934 | 2,430 | 1,250 | 46 | - | 9,660 | 9,410 |
Level I B \u2013 Covered bonds | 3,428 | - | - | - | - | 3,428 | 3,459 |
Level II A \u2013 Government/ Supranational | - | - | - | - | - | 0 | 0 |
Level II A \u2013 Covered bonds | 165 | - | - | - | - | 165 | 169 |
Level II B \u2013 RMBS | 1,276 | - | - | - | - | 1,276 | 1,283 |
| \u00a0 | 10,803 | 2,430 | 1,250 | 46 | - | 14,529 | 14,321 |
ALM portfolio | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Bonds | 2,575 | 53 | 1,099 | - | - | 3,727 | 3,263 |
RMBS-NHG | 1,455 | 32 | 74 | - | - | 1,561 | 1,564 |
Medium Term Notes (MTN) | - | 15 | 102 | - | - | 117 | 120 |
RMBS | 54 | 9 | 8 | - | - | 71 | 71 |
ABS | 18 | - | 13 | 48 | - | 79 | 79 |
Other | - | 528 | - | 113 | - | 641 | 564 |
| \u00a0 | 4,102 | 637 | 1,296 | 161 | - | 6,196 | 5,661 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Total | 14,905 | 3,067 | 2,546 | 207 | - | 20,725 | 19,982 |
31-12-2024 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|---|---|---|
| \u00a0 | AAA | AA | A | BBB | Non-invest- ment grade | Total nominal value | Total balance sheet value |
Liquidity portfolio | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Level I \u2013 Government/ Supranational | 5,237 | 3,311 | 1,268 | 46 | - | 9,862 | 9,774 |
Level I B \u2013 Covered bonds | 2,587 | - | - | - | - | 2,587 | 2,611 |
Level II A \u2013 Government/ Supranational | - | 60 | - | - | - | 60 | 56 |
Level II A \u2013 Covered bonds | 205 | - | - | - | - | 205 | 209 |
Level II B \u2013 RMBS | 1,375 | - | - | - | - | 1,375 | 1,390 |
| \u00a0 | 9,404 | 3,371 | 1,268 | 46 | - | 14,089 | 14,040 |
ALM portfolio1 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Bonds | 2,497 | 348 | 530 | - | - | 3,375 | 3,388 |
RMBS-NHG | 2,159 | 37 | 82 | - | - | 2,278 | 2,283 |
Medium Term Notes (MTN) | - | 15 | 94 | - | - | 109 | 115 |
RMBS | 22 | 69 | 21 | - | - | 112 | 114 |
ABS | 26 | - | - | 68 | - | 94 | 94 |
Other | - | 536 | 143 | 358 | - | 1,037 | 937 |
| \u00a0 | 4,704 | 1,005 | 870 | 426 | - | 7,005 | 6,931 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Total | 14,108 | 4,376 | 2,138 | 472 | - | 21,094 | 20,971 |
The liquidity portfolio improved in quality (AAA and AA) mainly due to investments in Government bonds with a better rating.
At year-end 2025 BNG has transferred EUR 2,774 million in interest-bearing securities in repurchase transactions without derecognition (2024: EUR 2,669 million). At year-end 2025, BNG has no financial assets in its portfolio that were transferred and derecognised and in which it has a continuing involvement. Financial assets are not removed from the balance sheet if BNG retains the credit risks and the rights to the underlying cash flows.
Regarding concentration risk, the bank differentiates between:
country risk with a distinction between domestic and foreign risk;
sector risk; and
risk for individual parties with a distinction between clients and financial counterparties.
Sector specific policies, annual internal targets and maximum exposure amounts on individual counterparties are applied to manage the concentration risks on sectors and individual parties. A considerable portion of the total outstanding exposures is indirectly related to public sector property. However, these risks are generally mitigated by government guarantees on lending and by the WSW and WfZ guarantee funds. BNG received EUR 57 billion of government guarantees (2024: EUR 56 billion). These guarantees result in a concentration risk in relation to public authorities and guarantee funds. The guarantee funds are guaranteed by the central government via backstop constructions, which, in the end, creates an exposure to the Dutch State. The concentration of this risk is high, but inherent to BNG\u2019s business model.
The bank is exposed to foreign country risk as a result of transactions with financial counterparties to hedge market risks arising from lending and funding activities, as a result of its liquidity portfolio and, to a limited extent, in the context of lending and investments in the public sector abroad.
The bank invests in foreign securities for its liquidity portfolio because the vast majority of its loan portfolio already relates to the Netherlands. Foreign lending is in most cases also directly or indirectly guaranteed by the relevant governments.
All foreign exposures fall within limits set for each country. These limits mainly depend on the perceived credit quality of the country in question. Moreover, a general limit of 15% of the balance sheet total applies to foreign exposures excluding derivatives, collateral and short term loans and current account balances due from banks.
The following tables provide an overview of long-term foreign exposures. Derivative transactions and short-term transactions (including cash collateral with banks in particular) have not been included. The amounts shown are remaining principal amounts in millions of euros. Part of the exposure in Luxembourg and the full exposure in the United States are reclassified under Multilateral development banks since 2024.
31-12-2025 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|---|---|---|
| \u00a0 | AAA | AA | A | BBB | Non-invest- ment grade | Total nominal value | Total balance sheet value |
Supranational institutions | 4,551 | - | - | - | - | 4,551 | 4,132 |
Multilateral development banks | 397 | - | - | - | - | 397 | 385 |
Austria | 79 | 1,189 | - | - | - | 1,268 | 1,228 |
Belgium | - | 712 | - | 64 | - | 776 | 788 |
Denmark | 96 | - | - | - | - | 96 | 89 |
Finland | - | 499 | - | - | - | 499 | 478 |
France | 903 | - | - | - | - | 903 | 921 |
Germany | 1,245 | 178 | 37 | - | - | 1,460 | 1,427 |
Italy | - | - | 13 | 39 | - | 52 | 53 |
Luxembourg | 631 | - | - | - | - | 631 | 587 |
Portugal | 9 | - | - | - | - | 9 | 9 |
Singapore | - | - | 130 | - | - | 130 | 130 |
Spain | 46 | 9 | 90 | 46 | - | 191 | 208 |
United Kingdom | 165 | 528 | - | 130 | 28 | 851 | 778 |
Total | 8,122 | 3,115 | 270 | 279 | 28 | 11,814 | 11,213 |
31-12-2024 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|---|---|---|
| \u00a0 | AAA | AA | A | BBB | Non-invest- ment grade | Total nominal value | Total balance sheet value |
Supranational institutions | 4,929 | - | - | - | - | 4,929 | 4,999 |
Multilateral development banks | 208 | - | - | - | - | 208 | 200 |
Austria | - | 1,227 | - | - | - | 1,227 | 1,185 |
Belgium | - | 657 | - | 69 | - | 726 | 750 |
Denmark | 36 | - | - | - | - | 36 | 35 |
Finland | - | 449 | - | - | - | 449 | 428 |
France | 741 | 1,008 | - | - | - | 1,749 | 1,775 |
Germany | 915 | 200 | 42 | - | - | 1,157 | 1,136 |
Italy | - | - | - | - | - | - | - |
Luxembourg | 384 | - | - | - | - | 384 | 346 |
Portugal | 11 | - | - | 56 | - | 67 | 67 |
Singapore | - | - | 149 | - | - | 149 | 149 |
Spain | 11 | 70 | 102 | 46 | - | 229 | 250 |
United Kingdom | 205 | 536 | 148 | 371 | 32 | 1,292 | 1,197 |
Total | 7,440 | 4,147 | 441 | 542 | 32 | 12,602 | 12,517 |
For a large part, the non-investment grade items (i.e. items with a rating below BBB-) consist of exposures in United Kingdom. The non-investment grade exposures in the United Kingdom concern a limited number of private project financing schemes in the areas of infrastructure, education, energy and healthcare. The total fair value of foreign non-investment grade exposures at 31 December 2025 amounted to EUR 26 million (year-end 2024: EUR 30 million).
The following tables provide an overview of all exposures subdivided to risk classes, either by internal- or external rating.
| \u00a0 | 31-12-2025 | \u00a0 | \u00a0 | \u00a0 | 31-12-2024 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|---|---|---|---|
Loans and advances | On-balance exposures | On-balance exposures | ||||||
| \u00a0 | Performing | Non-performing | Total | Performing | Non-performing | Total | ||
| \u00a0 | Stage 1 | Stage 2 | Stage 3 | Stage 1 | Stage 2 | Stage 3 | ||
- Low risk | 88,812 | 22 | - | 88,834 | 85,683 | - | - | 85,683 |
- Medium risk | 148 | 191 | - | 339 | 254 | 59 | - | 313 |
- High risk | 27 | 171 | - | 198 | 1 | 226 | - | 227 |
- Non-performing | - | 4 | 154 | 158 | - | - | 279 | 279 |
- Not rated | - | - | - | - | - | - | - | - |
Total | 88,987 | 388 | 154 | 89,529 | 85,938 | 285 | 279 | 86,502 |
Loans and advances | On-balance exposures | On-balance exposures | ||||||
|---|---|---|---|---|---|---|---|---|
| \u00a0 | Performing | Non-performing | Total | Performing | Non-performing | Total | ||
| \u00a0 | Stage 1 | Stage 2 | Stage 3 | Stage 1 | Stage 2 | Stage 3 | ||
- Low risk | 7,458 | 129 | - | 7,587 | 7,571 | 107 | - | 7,678 |
- Medium risk | 18 | 135 | - | 153 | 8 | 78 | - | 86 |
- High risk | 26 | 233 | - | 259 | 13 | 120 | - | 133 |
- Non-performing | - | - | 197 | 197 | - | - | 135 | 135 |
- Not rated | - | - | - | - | - | 2 | - | 2 |
Total | 7,502 | 497 | 197 | 8,196 | 7,592 | 307 | 135 | 8,034 |
| \u00a0 | 31-12-2025 | \u00a0 | \u00a0 | \u00a0 | 31-12-2024 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|---|---|---|---|
Interest-bearing securities | On-balance exposures | On-balance exposures | ||||||
| \u00a0 | Performing | Non-performing | Total | Performing | Non-performing | Total | ||
| \u00a0 | Stage 1 | Stage 2 | Stage 3 | Stage 1 | Stage 2 | Stage 3 | ||
- Low risk | 19,901 | - | - | 19,901 | 20,455 | - | - | 20,455 |
- Medium risk | - | - | - | - | - | - | - | - |
- High risk | - | - | - | - | - | - | - | - |
- Non-performing | - | - | - | - | - | - | - | - |
- Not rated | - | - | - | - | - | - | - | - |
Total | 19,901 | - | - | 19,901 | 20,455 | - | - | 20,455 |
Risk classes | Ratings based on | |
|---|---|---|
| \u00a0 | Internal ratings | External rating |
- Low risk | 1-11 | AAA - BBB |
- Medium risk | 12-13 | BB |
- High risk | 14-16 | B or lower |
- Non-performing | 17-21 | \u00a0 |
For non-zero risk weighted parties, the exposures have to adhere to the Large Exposure Regulation under CRR. The bank has a significantly more conservative approach regarding the maximum size of individual exposures. This further limitation takes into account the degree to which sectors are anchored in the public sector. The party\u2019s individual rating is a further criterium for limit setting.
Transactions with financial counterparties primarily consist of interest rate and currency swaps undertaken to mitigate market risks. BNG sets requirements for the minimum ratings of the financial counterparties with which it is willing to transact, taking into account the nature of the business conducted with that party. This limits the number of available parties. As a consequence, the number of transactions with approved parties is high. Daily exchange of collateral helps to mitigate the credit risk with respect to derivatives. A bankruptcy of a counterparty would result in market risks as the market is subject to fluctuations while the derivatives need to be rearranged with another party. The Credit Committee limits and monitors positions with financial counterparties. BNG clears parts of its derivatives centrally via clearing houses through clearing members. This results inevitably in a shift in concentration risk from individual financial counterparties to the clearing members and the clearing houses.
The London Clearing House (LCH) is temporarily being exempted from changes in regulations resulting from Brexit. The exemption for the LCH to serve EU customers has been extended to June 2028. This means that cleared derivatives can remain with the LCH and that it is still possible to clear new swaps at the LCH. BNG currently uses both EUREX and the LCH to clear swaps. This way continuity and flexibility regarding central clearing is granted.
Market risk is defined as an existing or future threat to the institution\u2019s capital and earnings as a result of market price fluctuations. It includes interest rate risk, foreign exchange risk, volatility risk, spread risk and index risk.
The bank\u2019s most important interest rate risk is the \u2018outright risk\u2019 to the interest rate swap curve, which is determined excluding the impact of spreads. This means that changes in spreads such as credit spreads, CVA/DVA and cross currency basis spreads do not influence the interest rate risk position and hedging. There is no material presence of early redemption options in BNG\u2019s regular loan portfolio. Likewise, there is no material exposure in mortgages and the bank does not attract savings from private individuals. Consequently, client behaviour is not modelled in the bank\u2019s interest rate risk models.
The limits with respect to interest rate risk were not breached in 2025. In the bank\u2019s opinion, its interest rate risk management was adequate, compliant with the regulatory standards and within the limits as defined in the bank\u2019s risk appetite and risk policies. The table below outlines the Earnings-at-Risk (EaR) as per end of 2025 in a scenario with an instantaneous parallel shock of plus 162 basis points for the 1-year horizon. A 2-years horizon is added in 2025, as the impact on the longer term could be assessed. For the 2-year horizon, a scenario with a gradual, linearly increasing, parallel shock to a minimum of minus 168 basis points is used. Internal steering takes place mainly on a 1-year horizon. Usually, the most negative impact can be seen in the scenario with an instantaneous parallel shock of minus 168 basis points. The main reason for the switch in the 1-year scenario is the bank\u2019s Euribor fixations structure in the banking book.
Earnings at risk | 2025 | 2024 |
|---|---|---|
(in millions of euros) | \u00a0 | \u00a0 |
Horizon | \u00a0 | \u00a0 |
1 year | -41 | -53 |
2 years | -62 | - |
The bank obtains a large portion of its funding in foreign currencies and is therefore exposed to foreign exchange fluctuations. However, according to the bank\u2019s policy, foreign exchange risks are hedged in terms of notional amounts. Incidentally, foreign exchange positions may occur in certain cases where it is not cost-efficient to hedge the risk. The foreign exchange risk of these minor positions is monitored on a daily basis, subject to limits. During 2025 and 2024, these limits were not breached.
In order to be able to manage its interest rate risk exposure in a flexible and cost efficient way, the bank allows itself a limited range for assuming volatility risk to support the interest rate position in the Treasury book. This range is limited and is monitored by the Risk Management department. During 2025, no additional volatility risk was assumed to support the active interest rate position. With regard to its other activities, BNG\u2019s policy specifies that the volatility risks for new financial instruments should be hedged one-to-one. The resulting volatility risk is relatively small and is subject to monitoring by Risk Management.
The economic value of BNG\u2019s equity is determined over its total portfolio of assets and liabilities. Both assets and liabilities are valued on the basis of an interest rate curve made up of market-based swap rates plus credit risk spreads. In case of interest rate swaps, the CVA risk (counterparty risk) and DVA risk (the bank\u2019s own default risk) are included. Spread risk is not hedged by the bank. The impact of changes in these spreads is measured and monitored on a daily basis. For the fair value instruments affecting profit and loss or regulatory capital, a warning level on the credit spread stress testing outcomes has been set.
The bank has inflation-linked instruments in its portfolio. The bank\u2019s policy specifies that exposure to fluctuations in inflation risk should be hedged in full and it executes this policy. The inflation delta is monitored on a daily basis.
Liquidity risk is defined as the existing or future threat to the institution\u2019s capital and earnings due to the possibility that it will not be able at any moment to fulfil its payment obligations, without incurring any unacceptable costs or losses. The public sector consists largely of institutions with a long-term investment horizon. This means that assets frequently have long maturities, which can be in excess of 25 years. As BNG is not able to attract funding in large volumes for these maturities at acceptable prices, a limited funding mismatch is accepted. In order to manage this mismatch, also in times of stress, BNG holds sufficient liquidity and capital buffers.
BNG wants to provide a stable presence in the capital markets, because the bank wants to continue to meet the demand for credit even in difficult times. It also pursues a prudent liquidity policy to ensure that it can meet its obligations at all times. In this context, ongoing access to the money and capital markets is essential, along with the ongoing maintenance of attractive, varied and sufficiently large issuance programmes for investors. In addition, buffers are required in order to have access to liquidity in times of stress. One such buffer is formed by assets held explicitly for liquidity purposes, known as the liquidity portfolio. The management of the size and composition of this portfolio is one of the liquidity measures to comply with the requirement under the CRR to have an Liquidity Coverage Ratio of at least 100%. BNG also holds an ample quantity of collateral with the ECB, which enables it to obtain short-term funding immediately. Since most of the bank\u2019s assets could serve as collateral at the ECB, this collateral may be further extended in the event of prolonged stress. The size of both buffers is tested in the liquidity stress tests, which are monitored on a monthly basis. Furthermore, the funding plan and corresponding planned liquidity gap is tested in an adverse stress scenario for the Liquidity Coverage Ratio and Net Stable Funding Ratio. The bank considers its liquidity management to have been adequate in 2025 and that the strength of the bank\u2019s liquidity position is both amply sufficient and in compliance with the regulatory standards and limits set by the ALCO. As at end of 2025, the Liquidity Coverage Ratio amounted to 159% (2024: 217%) and the Net Stable Funding Ratio ratio amounted to 143% (2024: 139%).
BNG distinguishes between short-term and long-term funding. The majority of funding is from international capital markets. The bank maintains a number of programmes that enables it to have access to funding at all times at competitive levels. The bank pursues proactive investor relations which supports these efforts. The bank has a funding plan, in which the desired funding mix is described in more detail. Part of the funding plan is the annual issuance in benchmark size to maintain a \u2018BNG curve\u2019 in the market. These large-scale issues ensure that the bank has a high profile among institutional investors, allowing it to retain access to investors even in times of market stress. The actual realisation of this funding mix is monitored and evaluated by the ALCO.
The amounts featured in the table below represent the non-discounted future cash flows of financial assets and liabilities. Because these amounts are non-discounted, these are different to the amounts in the balance sheet. For the maturity analysis of issued guarantees and irrevocable commitments, see the \u2018Off-balance sheet positions\u2019 section.
31-12-2025 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|---|
| \u00a0 | Up to 3 months | 3 - 12 months | 1 - 5 years | over 5 years | Total |
Cash and balances held with central banks | 1,842 | - | - | - | 1,842 |
Amounts due from banks | 14 | 98 | 405 | 327 | 844 |
Cash collateral posted | 3,721 | - | - | - | 3,721 |
Financial assets at fair value through the income statement | 2 | 90 | 28 | 252 | 372 |
Financial assets at fair value through other comprehensive income | -307 | 429 | 7,791 | 6,350 | 14,263 |
Interest-bearing securities at amortised cost | 458 | 735 | 3,252 | 8,001 | 12,446 |
Loans and advances | 2,887 | 8,371 | 30,785 | 84,690 | 126,733 |
Other assets | 24 | - | - | - | 24 |
Total financial assets (excluding derivatives) | 8,641 | 9,723 | 42,261 | 99,620 | 160,245 |
Amounts due to banks | -692 | -19 | -431 | -352 | -1,494 |
Cash collateral received | -710 | - | - | - | -710 |
Financial liabilities at fair value through the income statement | -2 | -3 | -88 | -209 | -302 |
Debt securities | -2,247 | -11,814 | -46,639 | -52,586 | -113,286 |
Funds entrusted | -4,942 | -576 | -1,297 | -5,314 | -12,129 |
Subordinated debt | - | -11 | -11 | - | -22 |
Other liabilities | -60 | - | - | - | -60 |
Current tax assets | -30 | - | - | - | -30 |
Total financial liabilities (excluding derivatives) | -8,683 | -12,423 | -48,466 | -58,461 | -128,033 |
Gross balanced derivatives | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Assets amounts receivable | 1,229 | 4,139 | 15,945 | 25,124 | 46,437 |
Assets amounts payable | -1,182 | -4,647 | -16,315 | -20,459 | -42,603 |
Derivatives stated as assets | 47 | -508 | -370 | 4,665 | 3,834 |
Liabilities amounts receivable | 2,937 | 5,304 | 16,537 | 35,237 | 60,015 |
Liabilities amounts payable | -3,009 | -6,267 | -17,338 | -31,402 | -58,016 |
Derivatives stated as liabilities | -72 | -963 | -801 | 3,835 | 1,999 |
Grand total | -67 | -4,171 | -7,376 | 49,659 | 38,045 |
31-12-2024 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|---|
| \u00a0 | Up to 3 months | 3 - 12 months | 1 - 5 years | over 5 years | Total |
Cash and balances held with central banks | 6,650 | - | - | - | 6,650 |
Amounts due from banks | 27 | 97 | 428 | 445 | 997 |
Cash collateral posted | 3,545 | - | - | - | 3,545 |
Financial assets at fair value through the income statement | 22 | 21 | 230 | 894 | 1,167 |
Financial assets at fair value through other comprehensive income | -5 | 624 | 5,743 | 7,780 | 14,142 |
Interest-bearing securities at amortised cost | 487 | 1,521 | 3,608 | 7,351 | 12,967 |
Loans and advances | 2,043 | 8,058 | 29,383 | 83,334 | 122,818 |
Current tax assets | 55 | - | - | - | 55 |
Other assets | 104 | - | - | - | 104 |
Total financial assets (excluding derivatives) | 12,928 | 10,321 | 39,392 | 99,804 | 162,445 |
Amounts due to banks | -936 | -19 | -283 | -533 | -1,771 |
Cash collateral received | -1,533 | - | - | - | -1,533 |
Financial liabilities at fair value through the income statement | -24 | -3 | -91 | -202 | -320 |
Debt securities | -5,594 | -14,543 | -45,518 | -53,803 | -119,458 |
Funds entrusted | -5,654 | -939 | -1,589 | -5,302 | -13,484 |
Subordinated debt | - | - | -22 | - | -22 |
Other liabilities | -88 | - | - | - | -88 |
Total financial liabilities (excluding derivatives) | -13,829 | -15,504 | -47,503 | -59,840 | -136,676 |
Gross balanced derivatives | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Assets amounts receivable | 2,377 | 31,204 | 7,026 | 36,289 | 76,896 |
Assets amounts payable | -2,030 | -29,336 | -6,249 | -32,722 | -70,336 |
Derivatives stated as assets | 347 | 1,868 | 777 | 3,567 | 6,559 |
Liabilities amounts receivable | 1,097 | 6,211 | 2,305 | 10,234 | 19,847 |
Liabilities amounts payable | -1,198 | -7,736 | -2,678 | -14,232 | -25,844 |
Derivatives stated as liabilities | -101 | -1,525 | -373 | -3,998 | -5,997 |
Grand total | -655 | -4,840 | -7,707 | 39,533 | 26,331 |
Encumbered financial assets are not freely disposable to meet liquidity needs in the short term. The following table shows the balance-sheet values of the assets, broken down into encumbered (not freely available) and unencumbered (freely available) assets.
31-12-2025 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|
| \u00a0 | Encumbered | Unencumbered | Total |
Cash and balances held with central banks | - | 1,831 | 1,831 |
Amounts due from banks | - | 704 | 704 |
Cash collateral posted | 3,721 | - | 3,721 |
Financial assets at fair value through the income statement | - | 285 | 285 |
Derivatives | - | 2,138 | 2,138 |
Financial assets at fair value through other comprehensive income | 5,178 | 6,617 | 11,795 |
Interest-bearing at amortised cost | 2,406 | 5,699 | 8,105 |
Loans and advances | 3,665 | 93,962 | 97,627 |
Value adjustments on loans in portfolio hedge accounting | - | -10,713 | -10,713 |
Non-financial assets | - | 71 | 71 |
Total | 14,970 | 100,594 | 115,564 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Average (total) in 2025 | 16,165 | 115,047 | 131,212 |
31-12-2024 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|
| \u00a0 | Encumbered | Unencumbered | Total |
Cash and balances held with central banks | - | 6,625 | 6,625 |
Amounts due from banks | - | 804 | 804 |
Cash collateral posted | 3,545 | - | 3,545 |
Financial assets at fair value through the income statement | - | 757 | 757 |
Derivatives | - | 3,979 | 3,979 |
Financial assets at fair value through other comprehensive income | 6,025 | 5,297 | 11,322 |
Interest-bearing at amortised cost | 2,411 | 6,722 | 9,133 |
Loans and advances | 3,805 | 90,732 | 94,537 |
Value adjustments on loans in portfolio hedge accounting | - | -2,953 | -2,953 |
Non-financial assets | - | 192 | 192 |
Total | 15,786 | 112,155 | 127,941 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Average (total) in 2024 | 16,537 | 120,734 | 137,271 |
Credit risk is defined as the risk of losses in earnings or capital resulting from the potential risk that a borrower or a counterparty will fail to meet its obligations in accordance with agreed terms. It includes counterparty risk, settlement risk and concentration risk. The bank is working on integrating climate-related risks within the credit risk framework. Currently a method is developed. This has limited impact on the current financial statements.
The total gross exposure value for credit risk consists of the total balance sheet value of the assets, adjusted for the balance sheet value of derivatives, cash collateral posted for either derivative transactions or secured financing transactions and receivables related to Settle to Market (STM) derivative contracts under the Amounts due from banks item. The gross exposure value for off-balance sheet commitments is included, as well as the exposure value for counterparty credit risk (divided into derivative and secured financing transactions). The table below provides insight into the total gross credit risk exposure value.
| \u00a0 | 31-12-2025 | 31-12-2024 |
|---|---|---|
Balance sheet total | 115,564 | 127,941 |
-/- Derivatives | -2,138 | -3,979 |
-/- Cash collateral posted | -3,721 | -3,545 |
Total on-balance sheet exposure | 109,705 | 120,417 |
| \u00a0 | \u00a0 | \u00a0 |
Total off-balance sheet exposure | 8,060 | 9,058 |
| \u00a0 | \u00a0 | \u00a0 |
Exposure value for derivatives | 1,868 | 2,283 |
Exposure value for secured financing transactions | 155 | 42 |
Total counterparty credit risk exposure | 2,024 | 2,325 |
Total gross exposure | 119,789 | 131,800 |
As at 31 December 2025, the balance sheet value of the loans granted to or guaranteed by public authorities, the WSW Housing guarantee fund and the WfZ Healthcare guarantee fund in the Loans and advances balance sheet item totalled EUR 89.0 billion (2024: EUR 85.7 billion). The contingent liabilities and the irrevocable facilities are explained in the section \u2018Off-balance sheet positions\u2019. Section 'Encumbered financial assets and liabilities' indicates which parts of the financial assets are not freely disposable.
The calculation of the market value of financial assets and financial liabilities at fair value through the income statement includes a credit and liquidity risk spread. Changes in value due to credit-risk and liquidity-risk fluctuations are derived from changes in these spreads. The risk profiles of individual customers and financial instruments are periodically assessed. If necessary, the credit-risk spread is adjusted for the purpose of valuation.
Cumulative changes in the market value of financial assets at fair value through the income statement as a result of adjusted credit and liquidity risk spreads totalled EUR 119 million negative (2024: EUR 116 million negative). The decrease is mainly attributable to the disposal of 4 (Inflation-Linked Bonds) investment which had a cumulative negative impact of EUR 71 million (2024: EUR 59 million negative). Cumulative changes in the market value of financial liabilities at fair value through the income statement as a result of adjusted credit and liquidity risk spreads totalled EUR 19 million positive (2024: EUR 28 million positive) and amounted to EUR 9 million negative for 2025 (2024: EUR 14 million positive). Financial liabilities at fair value through the income statement are recognised on the relevant funding curve including a mark-up for \u2018own credit risk\u2019 in the accounts.
The bank is exposed to counterparty risk in relation to public sector entities (loans and advances), financial counterparties (derivatives) and issuers of interest-bearing securities in which the bank has invested. BNG applies the following credit risk mitigation measures:
Guarantees received from a central or local authority or by the guarantee funds WSW (Social Housing) and WfZ (Healthcare). Because loans subject to solvency requirements are often extended under partial of full guarantees or suretyships, the loan remains partly or fully zero-risk-weighted on balance for BNG (see the section on statutory market parties).
Other forms of security such as pledges and mortgages are used to minimise possible losses due to credit risks. The potential risk-reducing effect, however, is not used in the calculation of the regulatory capital requirement.
Bilateral netting and collateral agreements based on a daily collateral exchange with financial counterparties, also the section on financial counterparties.
The bank\u2019s Articles of Association restrict lending to parties subject to some form of government involvement. As a result, the credit portfolio is largely comprised of zero-risk-weighted loans and advances provided to or guaranteed by the Dutch government.
Lending is subject to initial and periodic credit assessment. This contains a detailed assessment of the credit worthiness of the client concerned, based in part on the bank\u2019s own internal rating model. Additionally, the bank has an internal risk assessment process for tailored transactions that includes operational risk elements. Moreover, the bank uses extensive qualitative product descriptions, in which the appropriateness of the product for different types of clients is made explicit.
Most of BNG\u2019s clients are not rated by external rating agencies, such as Moody\u2019s, Fitch or S&P. The bank applies internally developed rating models to assess credit worthiness of clients. These expert models are sector specific and subject to periodic review and validation in accordance with the banks\u2019 model governance policy. These models are not applied for capital calculations under Pillar I, where the bank uses the Standardised approach.
The significance of the internal ratings is the following:
Internal rating | Description |
|---|---|
0 | Zero risk-weighted lending. |
1 through 11 | The credit risk is deemed acceptable. A regular annual review is performed. |
12 through 13 | Watch list: there is an increased credit risk. A review takes place at least twice a year. |
14 through 16 | Financial restructuring and recovering department: there is an increased credit risk. At least three times a year, a report on these debtors is submitted to the Executive Board. |
17 through 21 | Financial restructuring and recovering department: there is an increased credit risk and/or the debtor repeatedly fails to fulfil the payment obligations and/or there is no expectation of continuity. At least three times a year, a report on these debtors is submitted to the Executive Board. |
Forbearance concerns credit agreements for which the credit conditions have been amended in the debtor\u2019s favour as a result of the debtor\u2019s precarious financial position, so as to enable it to fulfil its obligations.
31-12-2025 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|
| \u00a0 | Total exposure | Of which: Forborne | in % of total | |
| \u00a0 | Gross of impairment | Net of impairment | ||
Financial assets (excl. derivatives) | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Cash and balances held with central banks | 1,831 | - | - | 0.0% |
Amounts due from banks | 704 | - | - | 0.0% |
Cash collateral posted | 3,721 | - | - | 0.0% |
Financial assets at fair value through the income statement | 285 | - | - | 0.0% |
Financial assets at fair value through other comprehensive income | 11,795 | - | - | 0.0% |
Interest-bearing securities at amortised cost | 8,105 | - | - | 0.0% |
Loans and advances | 97,627 | 232 | 209 | 0.2% |
| \u00a0 | 124,068 | 232 | 209 | 0.2% |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Off-balance sheet commitments | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Contingent liabilities | 442 | - | - | 0.0% |
Revocable facilities | 5,204 | 30 | 30 | 0.6% |
Irrevocable facilities | 2,414 | - | - | 0.0% |
| \u00a0 | 8,060 | 30 | 30 | 0.4% |
31-12-2024 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|
| \u00a0 | Total exposure | Of which: Forborne | in % of total | |
| \u00a0 | Gross of impairment | Net of impairment | ||
Financial assets (excl. derivatives) | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Cash and balances held with central banks | 6,625 | - | - | 0.0% |
Amounts due from banks | 804 | - | - | 0.0% |
Cash collateral posted | 3,545 | - | - | 0.0% |
Financial assets at fair value through the income statement | 757 | - | - | 0.0% |
Financial assets at fair value through other comprehensive income | 11,322 | - | - | 0.0% |
Interest-bearing securities at amortised cost | 9,133 | - | - | 0.0% |
Loans and advances | 94,537 | 346 | 318 | 0.4% |
| \u00a0 | 126,723 | 346 | 318 | 0.3% |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Off-balance sheet commitments | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Contingent liabilities | 501 | - | - | 0.0% |
Revocable facilities | 5,383 | 15 | 15 | 0.3% |
Irrevocable facilities | 3,174 | 6 | 6 | 0.2% |
| \u00a0 | 9,058 | 21 | 21 | 0.2% |
The financial assets of which contractual terms have been changed as a result of the debtor\u2019s unfavourable financial position amounted to EUR 232 million as at 31 December 2025 (year-end 2024: EUR 346 million). The increase is entirely due to the newly recorded debtors. The share of forborne exposure in the total portfolio is 0.2% (year-end 2024: 0.3%) and concerns 8 debtors (year-end 2024: 12 debtors). Forbearance is used as a backstop indicator in the impairment staging assessment, as a result of which all forborne exposures are classified in impairment stage 2.
An exposure classified as non-performing can once again be regarded as performing if all of the following conditions are met:
The debtor once again complies with all contractual terms (no default);
The debtor\u2019s situation has improved to the extent that the debtor is able to meet payment obligations according to an existing or adjusted payment profile (\u2018likely to pay\u2019); and
The debtor has no payment arrears exceeding 90 days.
The tables below provide insight into the total exposure in financial assets (excluding derivatives) and off-balance sheet commitments, indicating which portions have been classified as non-performing.
31-12-2025 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|
| \u00a0 | Total exposure | Of which: Non-performing | in % of total | |
| \u00a0 | Gross of impairment | Net of impairment | ||
Financial assets (excl. derivatives) | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Cash and balances held with central banks | 1,831 | - | - | 0.0% |
Amounts due from banks | 704 | - | - | 0.0% |
Cash collateral posted | 3,721 | - | - | 0.0% |
Financial assets at fair value through the income statement | 285 | - | - | 0.0% |
Financial assets at fair value through other comprehensive income | 11,795 | - | - | 0.0% |
Interest-bearing securities at amortised cost | 8,105 | - | - | 0.0% |
Loans and advances | 97,627 | 351 | 280 | 0.4% |
| \u00a0 | 124,068 | 351 | 280 | 0.3% |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Off-balance sheet commitments | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Contingent liabilities | 442 | 23 | 23 | 5.2% |
Revocable facilities | 5,204 | 0 | 0 | 0.0% |
Irrevocable facilities | 2,414 | 0 | 0 | 0.0% |
| \u00a0 | 8,060 | 23 | 23 | 0.3% |
31-12-2024 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|
| \u00a0 | Total exposure | Of which: Non-performing | in % of total | |
| \u00a0 | Gross of impairment | Net of impairment | ||
Financial assets (excl. derivatives) | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Cash and balances held with central banks | 6,625 | - | - | 0.0% |
Amounts due from banks | 804 | - | - | 0.0% |
Cash collateral posted | 3,545 | - | - | 0.0% |
Financial assets at fair value through the income statement | 757 | - | - | 0.0% |
Financial assets at fair value through other comprehensive income | 11,322 | - | - | 0.0% |
Interest-bearing securities at amortised cost | 9,133 | - | - | 0.0% |
Loans and advances | 94,537 | 460 | 416 | 0.5% |
| \u00a0 | 126,723 | 460 | 416 | 0.4% |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Off-balance sheet commitments | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Contingent liabilities | 501 | 1 | 0 | 0.2% |
Revocable facilities | 5,383 | 14 | 14 | 0.3% |
Irrevocable facilities | 3,174 | 6 | 6 | 0.2% |
| \u00a0 | 9,058 | 21 | 20 | 0.2% |
On-balance non-performing exposure totalled EUR\u00a0351\u00a0million as at 31 December 2025 (year-end 2024: EUR 460 million). The decrease of this exposure in 2025 is mainly caused by the settlement of two obligors in Stage 3. The total non-performing exposure remains low in relation to the total exposure of the portfolio of BNG. At year-end 2025 the share of non-performing exposure in the total portfolio is 0.3% (year-end 2024: 0.4%) and concerns 30 debtors (year-end 2024: 21 debtors). BNG received EUR 154 million of government guarantees (2024: EUR\u00a0279\u00a0million) with respect to non-performing exposures.
The following table shows the development of non-performing exposures.
| \u00a0 | 2025 | 2024 |
|---|---|---|
Total non-performing exposure as at 1 January | 460 | 598 |
Change in existing non-performing exposures | -21 | 1 |
Shift from performing to non-performing exposure | 81 | 65 |
Shift from non-performing to performing exposure | -108 | -138 |
Repayments on and settlement of non-performing exposure | -61 | -48 |
Write-off | - | -18 |
Total non-performing exposure as at 31 December | 351 | 460 |
The following table comprises past due exposures that are not included in impairment stage 3 under IFRS 9.
| \u00a0 | 31-12-2025 | 31-12-2024 |
|---|---|---|
Less than 31 days | 2 | 101 |
31 through 60 days | - | - |
61 through 90 days | - | - |
Over 90 days | - | - |
Closing balance | 2 | 101 |
The impairments of financial assets are explained in note 31.
BNG uses the external ratings awarded by rating agencies, specifically S&P, Moody\u2019s, Fitch and DBRS. In determining the capital requirement, the bank uses the ratings of these four agencies if such ratings are available. The ratings relate either to the counterparty or specifically to a securities purchased.
The market risks associated with loans to clients are mitigated primarily through derivative transactions with financial counterparties. The bank only conducts business with financial counterparties that have been rated by an external agency. Financial counterparties are periodically assessed for credit worthiness. If necessary, the limit on the maximum exposure to such a counterparty is re-adjusted accordingly.
| \u00a0 | 31-12-2025 | 31-12-2024 | ||
|---|---|---|---|---|
Exposure values for derivatives | Exposure value | Risk-weighted exposure amount | Exposure value | Risk-weighted exposure amount |
Regional governments or local authorities | 55 | \u00a0 | 167 | - |
Public sector entities | 0 | \u00a0 | 1 | 0 |
Institutions | 893 | 186 | 1,208 | 310 |
Corporates | 920 | 287 | 907 | 384 |
Total | 1,868 | 473 | 2,283 | 694 |
In order to reduce credit risk, netting agreements are in place with financial counterparties with which BNG actively enters into derivatives transactions or (reverse) repos. In addition, collateral agreements are concluded. These ensure that market value developments are mitigated on a daily basis by collateral. The agreements are updated where necessary in response to changing market circumstances, market practices and regulatory changes. The following table shows the gross positions before balance sheet netting and if the collateral agreements were taken into account.
31-12-2025 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|
| \u00a0 | Derivatives (stated as assets) | Derivatives (stated as liabilities) | Net |
Netting of financial assets and financial liabilities (derivatives) | \u00a0 | \u00a0 | \u00a0 |
Gross value of financial assets and liabilities before balance sheet netting | 15,977 | -18,848 | -2,871 |
Gross value of the financial assets and liabilities to be netted | -13,839 | 13,839 | 0 |
Balance sheet value of financial assets and liabilities (after netting) | 2,138 | -5,009 | -2,871 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Value of financial netting instrument that does not comply with IAS 32 (netting of derivatives with the same counterparty) for netting purposes | -1,351 | 1,351 | 0 |
Exposure before collateral | 787 | -3,658 | -2,871 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Value of financial collateral that does not comply with IAS 32 for netting purposes | -710 | 3,721 | 3,011 |
Net exposure | 77 | 63 | 140 |
31-12-2024 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|
| \u00a0 | Derivatives (stated as assets) | Derivatives (stated as liabilities) | Net |
Netting of financial assets and financial liabilities (derivatives) | \u00a0 | \u00a0 | \u00a0 |
Gross value of financial assets and liabilities before balance sheet netting | 14,874 | -16,441 | -1,567 |
Gross value of the financial assets and liabilities to be netted | -10,895 | 10,895 | 0 |
Balance sheet value of financial assets and liabilities (after netting) | 3,979 | -5,546 | -1,567 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Value of financial netting instrument that does not comply with IAS 32 (netting of derivatives with the same counterparty) for netting purposes | -2,111 | 2,111 | 0 |
Exposure before collateral | 1,868 | -3,435 | -1,567 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Value of financial collateral that does not comply with IAS 32 for netting purposes | -1,533 | 3,545 | 2,012 |
Net exposure | 335 | 110 | 445 |
At year-end 2025, the collateral posted for derivative transactions amounted to EUR\u00a03.6 billion (2024: EUR 4.1 billion). The deterioration of BNG\u2019s rating by three notches would not increase this amount (2024: EUR nil). The strength of the bank\u2019s liquidity position is sufficient to absorb fluctuations in collateral obligations.
| \u00a0 | 31-12-2025 | 31-12-2024 | ||
|---|---|---|---|---|
| \u00a0 | Reverse repos (assets) | Repos (liabilities) | Reverse repos (assets) | Repos (liabilities) |
Netting of reverse repo and repo agreements subject to enforceable master netting agreements | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Gross balance sheet value before balance sheet netting | 2,485 | -2,485 | 2,112 | -2,110 |
Balance sheet netting of reverse repo and repo agreements | -2,485 | 2,485 | -2,110 | 2,110 |
Net balance sheet value of financial assets and liabilities | 0 | 0 | 2 | 0 |
BNG\u2019s IBS portfolio is held predominantly for liquidity management purposes. The portfolio is composed of high-quality bonds, the majority of which are accepted as collateral by the ECB. BNG\u2019s total IBS portfolio can be subdivided into a liquidity portfolio and an Asset & Liability Management (ALM) portfolio. The liquidity portfolio consists exclusively of highly negotiable securities and is subdivided according to the various LCR levels. The ALM portfolio is subdivided according to type of security. Each month, the development of the portfolio is reported to and evaluated by the Investment Committee. Using factors such as external ratings and \u2013 in part \u2013 internal ratings, the bank monitors the development on an individual basis. All assets within these portfolios undergo an impairment analysis twice a year. Asset backed securities (including RMBS) are subject to a due diligence review process.
The amounts shown below per rating category are remaining principal amounts in millions of euros. The total balance sheet value is also shown in the final column.
31-12-2025 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|---|---|---|
| \u00a0 | AAA | AA | A | BBB | Non-invest- ment grade | Total nominal value | Total balance sheet value |
Liquidity portfolio | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Level I \u2013 Government/ Supranational | 5,934 | 2,430 | 1,250 | 46 | - | 9,660 | 9,410 |
Level I B \u2013 Covered bonds | 3,428 | - | - | - | - | 3,428 | 3,459 |
Level II A \u2013 Government/ Supranational | - | - | - | - | - | 0 | 0 |
Level II A \u2013 Covered bonds | 165 | - | - | - | - | 165 | 169 |
Level II B \u2013 RMBS | 1,276 | - | - | - | - | 1,276 | 1,283 |
| \u00a0 | 10,803 | 2,430 | 1,250 | 46 | - | 14,529 | 14,321 |
ALM portfolio | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Bonds | 2,575 | 53 | 1,099 | - | - | 3,727 | 3,263 |
RMBS-NHG | 1,455 | 32 | 74 | - | - | 1,561 | 1,564 |
Medium Term Notes (MTN) | - | 15 | 102 | - | - | 117 | 120 |
RMBS | 54 | 9 | 8 | - | - | 71 | 71 |
ABS | 18 | - | 13 | 48 | - | 79 | 79 |
Other | - | 528 | - | 113 | - | 641 | 564 |
| \u00a0 | 4,102 | 637 | 1,296 | 161 | - | 6,196 | 5,661 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Total | 14,905 | 3,067 | 2,546 | 207 | - | 20,725 | 19,982 |
31-12-2024 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|---|---|---|
| \u00a0 | AAA | AA | A | BBB | Non-invest- ment grade | Total nominal value | Total balance sheet value |
Liquidity portfolio | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Level I \u2013 Government/ Supranational | 5,237 | 3,311 | 1,268 | 46 | - | 9,862 | 9,774 |
Level I B \u2013 Covered bonds | 2,587 | - | - | - | - | 2,587 | 2,611 |
Level II A \u2013 Government/ Supranational | - | 60 | - | - | - | 60 | 56 |
Level II A \u2013 Covered bonds | 205 | - | - | - | - | 205 | 209 |
Level II B \u2013 RMBS | 1,375 | - | - | - | - | 1,375 | 1,390 |
| \u00a0 | 9,404 | 3,371 | 1,268 | 46 | - | 14,089 | 14,040 |
ALM portfolio1 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Bonds | 2,497 | 348 | 530 | - | - | 3,375 | 3,388 |
RMBS-NHG | 2,159 | 37 | 82 | - | - | 2,278 | 2,283 |
Medium Term Notes (MTN) | - | 15 | 94 | - | - | 109 | 115 |
RMBS | 22 | 69 | 21 | - | - | 112 | 114 |
ABS | 26 | - | - | 68 | - | 94 | 94 |
Other | - | 536 | 143 | 358 | - | 1,037 | 937 |
| \u00a0 | 4,704 | 1,005 | 870 | 426 | - | 7,005 | 6,931 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Total | 14,108 | 4,376 | 2,138 | 472 | - | 21,094 | 20,971 |
The liquidity portfolio improved in quality (AAA and AA) mainly due to investments in Government bonds with a better rating.
At year-end 2025 BNG has transferred EUR 2,774 million in interest-bearing securities in repurchase transactions without derecognition (2024: EUR 2,669 million). At year-end 2025, BNG has no financial assets in its portfolio that were transferred and derecognised and in which it has a continuing involvement. Financial assets are not removed from the balance sheet if BNG retains the credit risks and the rights to the underlying cash flows.
Regarding concentration risk, the bank differentiates between:
country risk with a distinction between domestic and foreign risk;
sector risk; and
risk for individual parties with a distinction between clients and financial counterparties.
Sector specific policies, annual internal targets and maximum exposure amounts on individual counterparties are applied to manage the concentration risks on sectors and individual parties. A considerable portion of the total outstanding exposures is indirectly related to public sector property. However, these risks are generally mitigated by government guarantees on lending and by the WSW and WfZ guarantee funds. BNG received EUR 57 billion of government guarantees (2024: EUR 56 billion). These guarantees result in a concentration risk in relation to public authorities and guarantee funds. The guarantee funds are guaranteed by the central government via backstop constructions, which, in the end, creates an exposure to the Dutch State. The concentration of this risk is high, but inherent to BNG\u2019s business model.
The bank is exposed to foreign country risk as a result of transactions with financial counterparties to hedge market risks arising from lending and funding activities, as a result of its liquidity portfolio and, to a limited extent, in the context of lending and investments in the public sector abroad.
The bank invests in foreign securities for its liquidity portfolio because the vast majority of its loan portfolio already relates to the Netherlands. Foreign lending is in most cases also directly or indirectly guaranteed by the relevant governments.
All foreign exposures fall within limits set for each country. These limits mainly depend on the perceived credit quality of the country in question. Moreover, a general limit of 15% of the balance sheet total applies to foreign exposures excluding derivatives, collateral and short term loans and current account balances due from banks.
The following tables provide an overview of long-term foreign exposures. Derivative transactions and short-term transactions (including cash collateral with banks in particular) have not been included. The amounts shown are remaining principal amounts in millions of euros. Part of the exposure in Luxembourg and the full exposure in the United States are reclassified under Multilateral development banks since 2024.
31-12-2025 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|---|---|---|
| \u00a0 | AAA | AA | A | BBB | Non-invest- ment grade | Total nominal value | Total balance sheet value |
Supranational institutions | 4,551 | - | - | - | - | 4,551 | 4,132 |
Multilateral development banks | 397 | - | - | - | - | 397 | 385 |
Austria | 79 | 1,189 | - | - | - | 1,268 | 1,228 |
Belgium | - | 712 | - | 64 | - | 776 | 788 |
Denmark | 96 | - | - | - | - | 96 | 89 |
Finland | - | 499 | - | - | - | 499 | 478 |
France | 903 | - | - | - | - | 903 | 921 |
Germany | 1,245 | 178 | 37 | - | - | 1,460 | 1,427 |
Italy | - | - | 13 | 39 | - | 52 | 53 |
Luxembourg | 631 | - | - | - | - | 631 | 587 |
Portugal | 9 | - | - | - | - | 9 | 9 |
Singapore | - | - | 130 | - | - | 130 | 130 |
Spain | 46 | 9 | 90 | 46 | - | 191 | 208 |
United Kingdom | 165 | 528 | - | 130 | 28 | 851 | 778 |
Total | 8,122 | 3,115 | 270 | 279 | 28 | 11,814 | 11,213 |
31-12-2024 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|---|---|---|
| \u00a0 | AAA | AA | A | BBB | Non-invest- ment grade | Total nominal value | Total balance sheet value |
Supranational institutions | 4,929 | - | - | - | - | 4,929 | 4,999 |
Multilateral development banks | 208 | - | - | - | - | 208 | 200 |
Austria | - | 1,227 | - | - | - | 1,227 | 1,185 |
Belgium | - | 657 | - | 69 | - | 726 | 750 |
Denmark | 36 | - | - | - | - | 36 | 35 |
Finland | - | 449 | - | - | - | 449 | 428 |
France | 741 | 1,008 | - | - | - | 1,749 | 1,775 |
Germany | 915 | 200 | 42 | - | - | 1,157 | 1,136 |
Italy | - | - | - | - | - | - | - |
Luxembourg | 384 | - | - | - | - | 384 | 346 |
Portugal | 11 | - | - | 56 | - | 67 | 67 |
Singapore | - | - | 149 | - | - | 149 | 149 |
Spain | 11 | 70 | 102 | 46 | - | 229 | 250 |
United Kingdom | 205 | 536 | 148 | 371 | 32 | 1,292 | 1,197 |
Total | 7,440 | 4,147 | 441 | 542 | 32 | 12,602 | 12,517 |
For a large part, the non-investment grade items (i.e. items with a rating below BBB-) consist of exposures in United Kingdom. The non-investment grade exposures in the United Kingdom concern a limited number of private project financing schemes in the areas of infrastructure, education, energy and healthcare. The total fair value of foreign non-investment grade exposures at 31 December 2025 amounted to EUR 26 million (year-end 2024: EUR 30 million).
The following tables provide an overview of all exposures subdivided to risk classes, either by internal- or external rating.
| \u00a0 | 31-12-2025 | \u00a0 | \u00a0 | \u00a0 | 31-12-2024 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|---|---|---|---|
Loans and advances | On-balance exposures | On-balance exposures | ||||||
| \u00a0 | Performing | Non-performing | Total | Performing | Non-performing | Total | ||
| \u00a0 | Stage 1 | Stage 2 | Stage 3 | Stage 1 | Stage 2 | Stage 3 | ||
- Low risk | 88,812 | 22 | - | 88,834 | 85,683 | - | - | 85,683 |
- Medium risk | 148 | 191 | - | 339 | 254 | 59 | - | 313 |
- High risk | 27 | 171 | - | 198 | 1 | 226 | - | 227 |
- Non-performing | - | 4 | 154 | 158 | - | - | 279 | 279 |
- Not rated | - | - | - | - | - | - | - | - |
Total | 88,987 | 388 | 154 | 89,529 | 85,938 | 285 | 279 | 86,502 |
Loans and advances | On-balance exposures | On-balance exposures | ||||||
|---|---|---|---|---|---|---|---|---|
| \u00a0 | Performing | Non-performing | Total | Performing | Non-performing | Total | ||
| \u00a0 | Stage 1 | Stage 2 | Stage 3 | Stage 1 | Stage 2 | Stage 3 | ||
- Low risk | 7,458 | 129 | - | 7,587 | 7,571 | 107 | - | 7,678 |
- Medium risk | 18 | 135 | - | 153 | 8 | 78 | - | 86 |
- High risk | 26 | 233 | - | 259 | 13 | 120 | - | 133 |
- Non-performing | - | - | 197 | 197 | - | - | 135 | 135 |
- Not rated | - | - | - | - | - | 2 | - | 2 |
Total | 7,502 | 497 | 197 | 8,196 | 7,592 | 307 | 135 | 8,034 |
| \u00a0 | 31-12-2025 | \u00a0 | \u00a0 | \u00a0 | 31-12-2024 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|---|---|---|---|
Interest-bearing securities | On-balance exposures | On-balance exposures | ||||||
| \u00a0 | Performing | Non-performing | Total | Performing | Non-performing | Total | ||
| \u00a0 | Stage 1 | Stage 2 | Stage 3 | Stage 1 | Stage 2 | Stage 3 | ||
- Low risk | 19,901 | - | - | 19,901 | 20,455 | - | - | 20,455 |
- Medium risk | - | - | - | - | - | - | - | - |
- High risk | - | - | - | - | - | - | - | - |
- Non-performing | - | - | - | - | - | - | - | - |
- Not rated | - | - | - | - | - | - | - | - |
Total | 19,901 | - | - | 19,901 | 20,455 | - | - | 20,455 |
Risk classes | Ratings based on | |
|---|---|---|
| \u00a0 | Internal ratings | External rating |
- Low risk | 1-11 | AAA - BBB |
- Medium risk | 12-13 | BB |
- High risk | 14-16 | B or lower |
- Non-performing | 17-21 | \u00a0 |
For non-zero risk weighted parties, the exposures have to adhere to the Large Exposure Regulation under CRR. The bank has a significantly more conservative approach regarding the maximum size of individual exposures. This further limitation takes into account the degree to which sectors are anchored in the public sector. The party\u2019s individual rating is a further criterium for limit setting.
Transactions with financial counterparties primarily consist of interest rate and currency swaps undertaken to mitigate market risks. BNG sets requirements for the minimum ratings of the financial counterparties with which it is willing to transact, taking into account the nature of the business conducted with that party. This limits the number of available parties. As a consequence, the number of transactions with approved parties is high. Daily exchange of collateral helps to mitigate the credit risk with respect to derivatives. A bankruptcy of a counterparty would result in market risks as the market is subject to fluctuations while the derivatives need to be rearranged with another party. The Credit Committee limits and monitors positions with financial counterparties. BNG clears parts of its derivatives centrally via clearing houses through clearing members. This results inevitably in a shift in concentration risk from individual financial counterparties to the clearing members and the clearing houses.
The London Clearing House (LCH) is temporarily being exempted from changes in regulations resulting from Brexit. The exemption for the LCH to serve EU customers has been extended to June 2028. This means that cleared derivatives can remain with the LCH and that it is still possible to clear new swaps at the LCH. BNG currently uses both EUREX and the LCH to clear swaps. This way continuity and flexibility regarding central clearing is granted.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCreditRiskExplanatory", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "p-blocktag-i7915": { "value": "At year-end 2025 BNG has transferred EUR 2,774 million in interest-bearing securities in repurchase transactions without derecognition (2024: EUR 2,669 million). At year-end 2025, BNG has no financial assets in its portfolio that were transferred and derecognised and in which it has a continuing involvement. Financial assets are not removed from the balance sheet if BNG retains the credit risks and the rights to the underlying cash flows.
", "dimensions": { "concept": "ifrs-full:DisclosureOfReclassificationOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i8586": { "value": "Market risk is defined as an existing or future threat to the institution\u2019s capital and earnings as a result of market price fluctuations. It includes interest rate risk, foreign exchange risk, volatility risk, spread risk and index risk.
The bank\u2019s most important interest rate risk is the \u2018outright risk\u2019 to the interest rate swap curve, which is determined excluding the impact of spreads. This means that changes in spreads such as credit spreads, CVA/DVA and cross currency basis spreads do not influence the interest rate risk position and hedging. There is no material presence of early redemption options in BNG\u2019s regular loan portfolio. Likewise, there is no material exposure in mortgages and the bank does not attract savings from private individuals. Consequently, client behaviour is not modelled in the bank\u2019s interest rate risk models.
The limits with respect to interest rate risk were not breached in 2025. In the bank\u2019s opinion, its interest rate risk management was adequate, compliant with the regulatory standards and within the limits as defined in the bank\u2019s risk appetite and risk policies. The table below outlines the Earnings-at-Risk (EaR) as per end of 2025 in a scenario with an instantaneous parallel shock of plus 162 basis points for the 1-year horizon. A 2-years horizon is added in 2025, as the impact on the longer term could be assessed. For the 2-year horizon, a scenario with a gradual, linearly increasing, parallel shock to a minimum of minus 168 basis points is used. Internal steering takes place mainly on a 1-year horizon. Usually, the most negative impact can be seen in the scenario with an instantaneous parallel shock of minus 168 basis points. The main reason for the switch in the 1-year scenario is the bank\u2019s Euribor fixations structure in the banking book.
Earnings at risk | 2025 | 2024 |
|---|---|---|
(in millions of euros) | \u00a0 | \u00a0 |
Horizon | \u00a0 | \u00a0 |
1 year | -41 | -53 |
2 years | -62 | - |
The bank obtains a large portion of its funding in foreign currencies and is therefore exposed to foreign exchange fluctuations. However, according to the bank\u2019s policy, foreign exchange risks are hedged in terms of notional amounts. Incidentally, foreign exchange positions may occur in certain cases where it is not cost-efficient to hedge the risk. The foreign exchange risk of these minor positions is monitored on a daily basis, subject to limits. During 2025 and 2024, these limits were not breached.
In order to be able to manage its interest rate risk exposure in a flexible and cost efficient way, the bank allows itself a limited range for assuming volatility risk to support the interest rate position in the Treasury book. This range is limited and is monitored by the Risk Management department. During 2025, no additional volatility risk was assumed to support the active interest rate position. With regard to its other activities, BNG\u2019s policy specifies that the volatility risks for new financial instruments should be hedged one-to-one. The resulting volatility risk is relatively small and is subject to monitoring by Risk Management.
The economic value of BNG\u2019s equity is determined over its total portfolio of assets and liabilities. Both assets and liabilities are valued on the basis of an interest rate curve made up of market-based swap rates plus credit risk spreads. In case of interest rate swaps, the CVA risk (counterparty risk) and DVA risk (the bank\u2019s own default risk) are included. Spread risk is not hedged by the bank. The impact of changes in these spreads is measured and monitored on a daily basis. For the fair value instruments affecting profit and loss or regulatory capital, a warning level on the credit spread stress testing outcomes has been set.
The bank has inflation-linked instruments in its portfolio. The bank\u2019s policy specifies that exposure to fluctuations in inflation risk should be hedged in full and it executes this policy. The inflation delta is monitored on a daily basis.
", "dimensions": { "concept": "ifrs-full:DisclosureOfMarketRiskExplanatory", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "p-blocktag-i8584": { "value": "The bank obtains a large portion of its funding in foreign currencies and is therefore exposed to foreign exchange fluctuations. However, according to the bank\u2019s policy, foreign exchange risks are hedged in terms of notional amounts. Incidentally, foreign exchange positions may occur in certain cases where it is not cost-efficient to hedge the risk. The foreign exchange risk of these minor positions is monitored on a daily basis, subject to limits. During 2025 and 2024, these limits were not breached.
", "dimensions": { "concept": "ifrs-full:DisclosureOfEffectOfChangesInForeignExchangeRatesExplanatory", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i9157": { "value": "Liquidity risk is defined as the existing or future threat to the institution\u2019s capital and earnings due to the possibility that it will not be able at any moment to fulfil its payment obligations, without incurring any unacceptable costs or losses. The public sector consists largely of institutions with a long-term investment horizon. This means that assets frequently have long maturities, which can be in excess of 25 years. As BNG is not able to attract funding in large volumes for these maturities at acceptable prices, a limited funding mismatch is accepted. In order to manage this mismatch, also in times of stress, BNG holds sufficient liquidity and capital buffers.
BNG wants to provide a stable presence in the capital markets, because the bank wants to continue to meet the demand for credit even in difficult times. It also pursues a prudent liquidity policy to ensure that it can meet its obligations at all times. In this context, ongoing access to the money and capital markets is essential, along with the ongoing maintenance of attractive, varied and sufficiently large issuance programmes for investors. In addition, buffers are required in order to have access to liquidity in times of stress. One such buffer is formed by assets held explicitly for liquidity purposes, known as the liquidity portfolio. The management of the size and composition of this portfolio is one of the liquidity measures to comply with the requirement under the CRR to have an Liquidity Coverage Ratio of at least 100%. BNG also holds an ample quantity of collateral with the ECB, which enables it to obtain short-term funding immediately. Since most of the bank\u2019s assets could serve as collateral at the ECB, this collateral may be further extended in the event of prolonged stress. The size of both buffers is tested in the liquidity stress tests, which are monitored on a monthly basis. Furthermore, the funding plan and corresponding planned liquidity gap is tested in an adverse stress scenario for the Liquidity Coverage Ratio and Net Stable Funding Ratio. The bank considers its liquidity management to have been adequate in 2025 and that the strength of the bank\u2019s liquidity position is both amply sufficient and in compliance with the regulatory standards and limits set by the ALCO. As at end of 2025, the Liquidity Coverage Ratio amounted to 159% (2024: 217%) and the Net Stable Funding Ratio ratio amounted to 143% (2024: 139%).
BNG distinguishes between short-term and long-term funding. The majority of funding is from international capital markets. The bank maintains a number of programmes that enables it to have access to funding at all times at competitive levels. The bank pursues proactive investor relations which supports these efforts. The bank has a funding plan, in which the desired funding mix is described in more detail. Part of the funding plan is the annual issuance in benchmark size to maintain a \u2018BNG curve\u2019 in the market. These large-scale issues ensure that the bank has a high profile among institutional investors, allowing it to retain access to investors even in times of market stress. The actual realisation of this funding mix is monitored and evaluated by the ALCO.
The amounts featured in the table below represent the non-discounted future cash flows of financial assets and liabilities. Because these amounts are non-discounted, these are different to the amounts in the balance sheet. For the maturity analysis of issued guarantees and irrevocable commitments, see the \u2018Off-balance sheet positions\u2019 section.
31-12-2025 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|---|
| \u00a0 | Up to 3 months | 3 - 12 months | 1 - 5 years | over 5 years | Total |
Cash and balances held with central banks | 1,842 | - | - | - | 1,842 |
Amounts due from banks | 14 | 98 | 405 | 327 | 844 |
Cash collateral posted | 3,721 | - | - | - | 3,721 |
Financial assets at fair value through the income statement | 2 | 90 | 28 | 252 | 372 |
Financial assets at fair value through other comprehensive income | -307 | 429 | 7,791 | 6,350 | 14,263 |
Interest-bearing securities at amortised cost | 458 | 735 | 3,252 | 8,001 | 12,446 |
Loans and advances | 2,887 | 8,371 | 30,785 | 84,690 | 126,733 |
Other assets | 24 | - | - | - | 24 |
Total financial assets (excluding derivatives) | 8,641 | 9,723 | 42,261 | 99,620 | 160,245 |
Amounts due to banks | -692 | -19 | -431 | -352 | -1,494 |
Cash collateral received | -710 | - | - | - | -710 |
Financial liabilities at fair value through the income statement | -2 | -3 | -88 | -209 | -302 |
Debt securities | -2,247 | -11,814 | -46,639 | -52,586 | -113,286 |
Funds entrusted | -4,942 | -576 | -1,297 | -5,314 | -12,129 |
Subordinated debt | - | -11 | -11 | - | -22 |
Other liabilities | -60 | - | - | - | -60 |
Current tax assets | -30 | - | - | - | -30 |
Total financial liabilities (excluding derivatives) | -8,683 | -12,423 | -48,466 | -58,461 | -128,033 |
Gross balanced derivatives | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Assets amounts receivable | 1,229 | 4,139 | 15,945 | 25,124 | 46,437 |
Assets amounts payable | -1,182 | -4,647 | -16,315 | -20,459 | -42,603 |
Derivatives stated as assets | 47 | -508 | -370 | 4,665 | 3,834 |
Liabilities amounts receivable | 2,937 | 5,304 | 16,537 | 35,237 | 60,015 |
Liabilities amounts payable | -3,009 | -6,267 | -17,338 | -31,402 | -58,016 |
Derivatives stated as liabilities | -72 | -963 | -801 | 3,835 | 1,999 |
Grand total | -67 | -4,171 | -7,376 | 49,659 | 38,045 |
31-12-2024 | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|---|---|
| \u00a0 | Up to 3 months | 3 - 12 months | 1 - 5 years | over 5 years | Total |
Cash and balances held with central banks | 6,650 | - | - | - | 6,650 |
Amounts due from banks | 27 | 97 | 428 | 445 | 997 |
Cash collateral posted | 3,545 | - | - | - | 3,545 |
Financial assets at fair value through the income statement | 22 | 21 | 230 | 894 | 1,167 |
Financial assets at fair value through other comprehensive income | -5 | 624 | 5,743 | 7,780 | 14,142 |
Interest-bearing securities at amortised cost | 487 | 1,521 | 3,608 | 7,351 | 12,967 |
Loans and advances | 2,043 | 8,058 | 29,383 | 83,334 | 122,818 |
Current tax assets | 55 | - | - | - | 55 |
Other assets | 104 | - | - | - | 104 |
Total financial assets (excluding derivatives) | 12,928 | 10,321 | 39,392 | 99,804 | 162,445 |
Amounts due to banks | -936 | -19 | -283 | -533 | -1,771 |
Cash collateral received | -1,533 | - | - | - | -1,533 |
Financial liabilities at fair value through the income statement | -24 | -3 | -91 | -202 | -320 |
Debt securities | -5,594 | -14,543 | -45,518 | -53,803 | -119,458 |
Funds entrusted | -5,654 | -939 | -1,589 | -5,302 | -13,484 |
Subordinated debt | - | - | -22 | - | -22 |
Other liabilities | -88 | - | - | - | -88 |
Total financial liabilities (excluding derivatives) | -13,829 | -15,504 | -47,503 | -59,840 | -136,676 |
Gross balanced derivatives | \u00a0 | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Assets amounts receivable | 2,377 | 31,204 | 7,026 | 36,289 | 76,896 |
Assets amounts payable | -2,030 | -29,336 | -6,249 | -32,722 | -70,336 |
Derivatives stated as assets | 347 | 1,868 | 777 | 3,567 | 6,559 |
Liabilities amounts receivable | 1,097 | 6,211 | 2,305 | 10,234 | 19,847 |
Liabilities amounts payable | -1,198 | -7,736 | -2,678 | -14,232 | -25,844 |
Derivatives stated as liabilities | -101 | -1,525 | -373 | -3,998 | -5,997 |
Grand total | -655 | -4,840 | -7,707 | 39,533 | 26,331 |
Encumbered financial assets are not freely disposable to meet liquidity needs in the short term. The following table shows the balance-sheet values of the assets, broken down into encumbered (not freely available) and unencumbered (freely available) assets.
31-12-2025 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|
| \u00a0 | Encumbered | Unencumbered | Total |
Cash and balances held with central banks | - | 1,831 | 1,831 |
Amounts due from banks | - | 704 | 704 |
Cash collateral posted | 3,721 | - | 3,721 |
Financial assets at fair value through the income statement | - | 285 | 285 |
Derivatives | - | 2,138 | 2,138 |
Financial assets at fair value through other comprehensive income | 5,178 | 6,617 | 11,795 |
Interest-bearing at amortised cost | 2,406 | 5,699 | 8,105 |
Loans and advances | 3,665 | 93,962 | 97,627 |
Value adjustments on loans in portfolio hedge accounting | - | -10,713 | -10,713 |
Non-financial assets | - | 71 | 71 |
Total | 14,970 | 100,594 | 115,564 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Average (total) in 2025 | 16,165 | 115,047 | 131,212 |
31-12-2024 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|
| \u00a0 | Encumbered | Unencumbered | Total |
Cash and balances held with central banks | - | 6,625 | 6,625 |
Amounts due from banks | - | 804 | 804 |
Cash collateral posted | 3,545 | - | 3,545 |
Financial assets at fair value through the income statement | - | 757 | 757 |
Derivatives | - | 3,979 | 3,979 |
Financial assets at fair value through other comprehensive income | 6,025 | 5,297 | 11,322 |
Interest-bearing at amortised cost | 2,411 | 6,722 | 9,133 |
Loans and advances | 3,805 | 90,732 | 94,537 |
Value adjustments on loans in portfolio hedge accounting | - | -2,953 | -2,953 |
Non-financial assets | - | 192 | 192 |
Total | 15,786 | 112,155 | 127,941 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Average (total) in 2024 | 16,537 | 120,734 | 137,271 |
Encumbered financial assets are not freely disposable to meet liquidity needs in the short term. The following table shows the balance-sheet values of the assets, broken down into encumbered (not freely available) and unencumbered (freely available) assets.
31-12-2025 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|
| \u00a0 | Encumbered | Unencumbered | Total |
Cash and balances held with central banks | - | 1,831 | 1,831 |
Amounts due from banks | - | 704 | 704 |
Cash collateral posted | 3,721 | - | 3,721 |
Financial assets at fair value through the income statement | - | 285 | 285 |
Derivatives | - | 2,138 | 2,138 |
Financial assets at fair value through other comprehensive income | 5,178 | 6,617 | 11,795 |
Interest-bearing at amortised cost | 2,406 | 5,699 | 8,105 |
Loans and advances | 3,665 | 93,962 | 97,627 |
Value adjustments on loans in portfolio hedge accounting | - | -10,713 | -10,713 |
Non-financial assets | - | 71 | 71 |
Total | 14,970 | 100,594 | 115,564 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Average (total) in 2025 | 16,165 | 115,047 | 131,212 |
31-12-2024 | \u00a0 | \u00a0 | \u00a0 |
|---|---|---|---|
| \u00a0 | Encumbered | Unencumbered | Total |
Cash and balances held with central banks | - | 6,625 | 6,625 |
Amounts due from banks | - | 804 | 804 |
Cash collateral posted | 3,545 | - | 3,545 |
Financial assets at fair value through the income statement | - | 757 | 757 |
Derivatives | - | 3,979 | 3,979 |
Financial assets at fair value through other comprehensive income | 6,025 | 5,297 | 11,322 |
Interest-bearing at amortised cost | 2,411 | 6,722 | 9,133 |
Loans and advances | 3,805 | 90,732 | 94,537 |
Value adjustments on loans in portfolio hedge accounting | - | -2,953 | -2,953 |
Non-financial assets | - | 192 | 192 |
Total | 15,786 | 112,155 | 127,941 |
| \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Average (total) in 2024 | 16,537 | 120,734 | 137,271 |
A part of the financial assets and liabilities is encumbered because these assets serve to secure and act as collateral for money market transactions and lending transactions. The following table shows the nominal sheet values and the collateral values.
| \u00a0 | 31-12-2025 | 31-12-2024 | ||
|---|---|---|---|---|
| \u00a0 | Nominal value | Collateral value | Nominal value | Collateral value |
Type of collateral | \u00a0 | \u00a0 | \u00a0 | \u00a0 |
Collateral pledged to the central bank | 52,229 | 33,785 | 52,968 | 34,208 |
Securities provided in derivatives transactions | 3,546 | 3,546 | 3,941 | 3,941 |
Cash deposited in relation to derivatives transactions | 3,585 | 3,590 | 3,473 | 3,470 |
Given as collateral | 59,360 | 40,921 | 60,382 | 41,619 |
Securities received in derivatives transactions | - | - | - | - |
Cash received in relation to derivatives transactions | 688 | 689 | 1,506 | 1,510 |
Received as collateral | 688 | 689 | 1,506 | 1,510 |
Total | 58,672 | 40,232 | 58,876 | 40,109 |
Of the total value of loans provided as collateral to the central bank, only a part has actually been used as collateral. At year-end 2025, the value of the collateral in use under the guarantee for clients\u2019 collection files amounted to EUR 2,306 million (year-end 2024: EUR 2,422 million).
", "dimensions": { "concept": "ifrs-full:DisclosureOfRestrictedCashAndCashEquivalentsExplanatory", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i9490": { "value": "Regulatory capital relates to the minimum capital requirements under the Capital Requirements Regulations (CRR) and Capital Requirements Directive IV (CRD IV). For regulatory purposes the capital requirement is based on the Pillar 1 requirement for the aggregated risk-weighted assets (RWA) for the three major risk types (credit, operational and market risk). This requirement is supplemented by the so-called combined buffer requirement (CBR) and a Pillar 2 requirement (P2R). The CBR consists of a capital conservation buffer, a systemic risk buffer, a countercyclical buffer and a systemic relevance buffer. The P2R is an institutional specific requirement stemming from the Supervisor Review and Evaluation Process (SREP) conducted by the supervisor. The P2R covers risks underestimated or not covered by Pillar 1. BNG employs the \u2018Standardised Approach\u2019 to calculate the RWAs.
In addition to the regulatory required capital BNG calculates economic capital (EC) for Pillar 2 purposes. Economic capital covers all risks in our risk taxonomy, for which capital is deemed to be the mitigating instrument to cover unexpected losses. It is used for internal risk measurement and management. It is the amount of capital the bank deems adequate to pursue its strategy and which achieve a sufficient level of protection against large unexpected losses that could result from extreme market conditions or events.
The Executive Board is responsible for determining the policy with respect to capital. This is laid down in a capital adequacy statement and management plan. The Executive Board is also responsible for the allocation of capital. Decision making is prepared by the Asset and Liability Committee (ALCO). This committee comprises representatives of all relevant stakeholders: the Executive Board, Public Finance, Treasury, Risk Management and Finance and Control.
As at December 2025, the fully CRR/CRD IV Common Equity Tier 1 (CET1), Tier 1 and total capital ratios were respectively 41.8%, 44.8% and 44.8%. All capital ratios were well above regulatory minimum requirements.
The impact of CRR3 is only related to the Corporate Specialised Lending and Secured by Mortgages. The impact on the risk weighted amount is limited.
The regulatory minimum requirements for BNG are shown in the table:
Capital Requirements | as of 1-1-2026 | as of 1-1-2025 |
|---|---|---|
Pillar 1 capital requirements | \u00a0 | \u00a0 |
Total own funds | 8.00% | 8.00% |
- of which Tier 1 | 6.00% | 6.00% |
- of which CET1 | 4.50% | 4.50% |
Pillar 2 capital requirements (P2R) | \u00a0 | \u00a0 |
Total own funds | 2.00% | 2.00% |
- of which Tier 1 | 1.50% | 1.50% |
- of which CET1 | 1.13% | 1.13% |
Total SREP capital requirements (TSCR) | \u00a0 | \u00a0 |
Total own funds | 10.00% | 10.00% |
- of which Tier 1 | 7.50% | 7.50% |
- of which CET1 | 5.63% | 5.63% |
| \u00a0 | \u00a0 | \u00a0 |
Capital Conservation Buffer (CCB) | \u00a0 | \u00a0 |
Total own funds | 2.50% | 2.50% |
- of which Tier 1 | 2.50% | 2.50% |
- of which CET1 | 2.50% | 2.50% |
Other Systemically Important Institution Buffer (OSII Buffer) | \u00a0 | \u00a0 |
Total own funds | 0.25% | 0.25% |
- of which Tier 1 | 0.25% | 0.25% |
- of which CET1 | 0.25% | 0.25% |
Overall Capital Requirement (OCR) excluding Institution specific countercyclical capital buffer | \u00a0 | \u00a0 |
Total own funds | 12.75% | 12.75% |
- of which Tier 1 | 10.25% | 10.25% |
- of which CET1 | 8.38% | 8.38% |
Since 2019 the dividend distribution policy of BNG is to distribute 50% of net profit. BNG did not change this policy in 2025.
The primary objective of the capital management strategy is to ensure that internal as well as external capital adequacy requirements are met at all times and sufficient capital is available to support the bank\u2019s strategy.
The capital management strategy builds on the bank\u2019s risk appetite and its business plans. Besides, expectations and requirements of external stakeholders (e.g. regulators, investors, rating agencies, shareholders), the bank\u2019s capitalization relative to other financial institutions, market developments and the feasibility of capital management actions are taken into account. The capitalization policy is incorporated in the so-called Internal Capital Adequacy Assessment Process (ICAAP).
Key to this policy is the capital management plan, which determines the level and composition of the capital based on the risks to be insured by that capital. In the ICAAP, regulatory as well as economic capital is taken into account. As part of the ICAAP a number of stress scenarios is executed in order to determine the adequacy and robustness of the capitalization. Next to the level of capitalization, the ICAAP determines the allocation per relevant type of risk.
On an ongoing basis, capital adequacy is measured and monitored against target capital ratios. These target levels are derived from the bank\u2019s risk appetite and strategy and quantified by the ICAAP. The allocation is derived from the ICAAP. This process ensures that the bank is operating in line with its risk appetite.
BNG\u2019s capitalization is well above the capital requirements laid down in the CRR and CRD IV. The capital structure consists mainly of common equity. The other part consists of Additional Tier 1 instruments.
The following table shows the structure of the regulatory capital.
31-12-2025 | \u00a0 | \u00a0 |
|---|---|---|
| \u00a0 | Capital | IFRS Equity |
Paid-up capital | 139 | 139 |
Share premium | 6 | 6 |
Retained earnings from previous years | 4,229 | 4,229 |
Unappropriated profit | \u00a0 | 172 |
Accumulated other comprehensive income | \u00a0 | \u00a0 |
- Cash flow hedge reserve | -13 | -13 |
- Cost of hedging | -2 | -2 |
- Own credit adjustment | 6 | 6 |
- Revaluation reserve | 17 | 17 |
Common equity Tier 1 (CET1) capital before regulatory adjustments | 4,382 | 4,554 |
Adjustments to CET1 capital as a result of prudential filters: | \u00a0 | \u00a0 |
- Distributable dividend (previous year) | - | \u00a0 |
- Cash flow hedge reserve | 13 | \u00a0 |
- Cumulative gains and losses arising from the bank\u2019s own credit risk related to derivatives liabilities | -2 | \u00a0 |
- Own credit risk for Financial liabilities at fair value through the income statement | -6 | \u00a0 |
- Value adjustments due to the prudential valuation requirements | -11 | \u00a0 |
- Intangible assets | - | \u00a0 |
- Expected credit loss allowance of Financial assets at fair value through OCI | - | \u00a0 |
- Insufficient coverage for non-performing exposures | -4 | \u00a0 |
- CET1 deduction due to NPE coverage expectations | -34 | \u00a0 |
- CET1 deduction due to Trading book (temporary deduction) | -18 | \u00a0 |
CET1 capital | 4,320 | \u00a0 |
Additional Tier 1 capital | 309 | 309 |
Tier 1 capital | 4,629 | \u00a0 |
Total equity | 4,629 | 4,863 |
31-12-2024 | \u00a0 | \u00a0 |
|---|---|---|
| \u00a0 | Capital | IFRS Equity |
Paid-up capital | 139 | 139 |
Share premium | 6 | 6 |
Retained earnings from previous years | 4,089 | 4,089 |
Unappropriated profit | \u00a0 | 294 |
Accumulated other comprehensive income | \u00a0 | \u00a0 |
- Cash flow hedge reserve | 9 | 9 |
- Cost of hedging | 94 | 94 |
- Own credit adjustment | 9 | 9 |
- Revaluation reserve | -172 | -172 |
Common equity Tier 1 (CET1) capital before regulatory adjustments | 4,174 | 4,468 |
Adjustments to CET1 capital as a result of prudential filters: | \u00a0 | \u00a0 |
- Distributable dividend (previous year) | - | \u00a0 |
- Cash flow hedge reserve | -9 | \u00a0 |
- Cumulative gains and losses arising from the bank\u2019s own credit risk related to derivatives liabilities1 | 0 | \u00a0 |
- Own credit risk for Financial liabilities at fair value through the income statement1 | -9 | \u00a0 |
- Value adjustments due to the prudential valuation requirements | -5 | \u00a0 |
- Intangible assets | - | \u00a0 |
- Expected credit loss allowance of Financial assets at fair value through OCI | - | \u00a0 |
- Insufficient coverage for non-performing exposures | -2 | \u00a0 |
- CET1 deduction due to NPE coverage expectations | -9 | \u00a0 |
Deduction of capital for securitisation positions eligible as alternatives for a risk weight of 1250% | - | \u00a0 |
CET1 capital | 4,140 | \u00a0 |
Additional Tier 1 capital | 309 | 309 |
Tier 1 capital | 4,449 | \u00a0 |
Total equity | 4,449 | 4,777 |
BNG applies the following prudential filters to the CET1 capital:
The cash flow hedge reserve is eliminated.
The benefits arising from own credit risk (DVA) in derivatives transactions are eliminated.
The benefits arising from own credit risk in relation to obligations classified as Financial liabilities at fair value through the income statement are eliminated.
Due to the regulations on prudent valuation, an adjustment is calculated in relation to the balance sheet valuation of assets and liabilities that are carried at fair value.
The investments in the development of software is activated and amortised over three years. After a correction for \u2018deferred tax\u2019, the total of these intangible assets is deducted.
The expected credit loss allowance of Financial assets at fair value through other comprehensive income.
For 2025 BNG applies a temporary deduction due to the Trading book, which includes client derivatives.
The portion of the revaluation reserve related to Financial assets at fair value through other comprehensive income are fully included in the CET1 capital in 2025 and 2024.
For a clarification, please refer to note 22 of the Notes to items of the consolidated financial statements.
", "dimensions": { "concept": "ifrs-full:DisclosureOfObjectivesPoliciesAndProcessesForManagingCapitalExplanatory", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i9762": { "value": "Transactions with related parties were made on terms equivalent to those that prevail in arm's length.
| \u00a0 | 31-12-2025 | 31-12-2024 |
|---|---|---|
State of the Netherlands | \u00a0 | \u00a0 |
Direct exposure in the form of purchased government securities | 1,547 | 1,241 |
Lending with direct guarantees from the State | 594 | 605 |
Lending with indirect guarantees from the State (WSW/WfZ) | 56,705 | 53,773 |
Subsidiaries | \u00a0 | \u00a0 |
Credit balances held by subsidiaries | 7 | 9 |
Joint ventures and joint operations | \u00a0 | \u00a0 |
Lending to joint ventures and joint operations | 14 | 32 |
Credit balances held by joint ventures and joint operations | 2 | 11 |
Off-balance sheet commitments to joint ventures and joint operations | 24 | 6 |
The State of the Netherlands owns 50% of the shares and voting rights of BNG As the other half of the shares is divided between a large number of shareholders, the State of the Netherlands has de facto control over BNG. The holders of Additional Tier 1 capital do not fall within the definition of related parties, as they have no (joint) control or significant influence over BNG. BNG has direct exposure to the State of the Netherlands in the form of purchased, publicly tradable government securities. The bank also has a large portfolio of loans and advances with direct guarantees from the State, or with guarantees from the WSW (social housing) and WfZ (Healthcare) guarantee funds, for which the State of the Netherlands acts as a backstop.
This relates to the BNG subsidiary BNG Gebiedsontwikkeling B.V. which is included in the consolidation. BNG has intercompany transactions with this party, which consist of the issue of private loans and advances, credit balances held in current accounts and off-balance sheet commitments. All of these intercompany transactions are eliminated from the figures in and notes to the consolidated financial statements.
This relates to joint ventures and joint operations entered into by BNG Gebiedsontwikkeling B.V. A list of these parties is provided in a separate note in these financial statements. Transactions with these joint ventures consist of loans and advances, credit balances held in current accounts and off-balance sheet commitments (the undrawn portions of credit facilities).
BNG has not granted any loans, advance payments or guarantees to individual members of the Executive Committee or Supervisory Board of BNG.
The most important decisions and acts of management are taken and carried out by the Executive Board. The policy pursued is assessed and supervised by the Supervisory Board.
Since 2020, BNG\u2019s remuneration policy consists solely of fixed remuneration components. The total fixed remuneration, granted to \u2018Identified Staff\u2019, i.e. individuals with direct influence on the bank\u2019s policy and risks, was EUR 6.9 million in 2025 (2024: EUR 6.2 million). The Identified Staff comprises of 40 individuals in 2025 (2024: 43).
The remuneration of the Identified Staff can be divided into three groups: Executive Committee, Senior management directly reporting to the Executive Committee and Other identified staff.
(amounts in thousands of euros) | 2025 | \u00a0 | 2024 | \u00a0 |
|---|---|---|---|---|
| \u00a0 | Fixed remuneration | One-off payment | Fixed remuneration | One-off payment |
Executive Committee | 1,936 | 136 | 1,451 | - |
Senior management | 4,090 | 174 | 3,858 | - |
Other identified staff | 764 | - | 912 | - |
Total | 6,790 | 310 | 6,221 | - |
In addition, the bank pays a monthly employer\u2019s pension contribution. Since 1 January 2015, pension accrual over salary in excess of EUR 100,000 is no longer possible under the current ABP pension plan. In 2025 this limit remained unchanged EUR 137,800 (2024: EUR 137,800). As a consequence of this cap for tax purposes and the lower pension accrual, BNG decided to compensate the employees concerned who were in the bank\u2019s employment on 1 January 2015 for lower pension accrual. The compensation is fixed as per 1 january 2015 and will not change over the years.
The remuneration of the Executive Committee is based on the principles formulated in the Remuneration Policy, the highlights of which are included in the Report of the Supervisory Board. The complete Remuneration Policy is published on bngbank.nl. Since 2002, the fixed remuneration component has only been adjusted by the percentages set out in the general Collective Labour Agreement for the banking industry. As per 2021 no deferred variable remuneration have occurred. Management and staff do not own BNG shares or options and receive no additional remuneration through subsidiaries of the bank.
(amounts in thousands of euros) | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 |
|---|---|---|---|---|---|---|---|---|
| \u00a0 | Fixed remuneration | One-off payment | Pension contributions | Compensation for pension accrual over salary >100K | ||||
P. Risch CEO (from 1 October 2024) | 401 | 91 | - | - | 35 | 9 | - | - |
G.J. Salden CEO (until 1 June 2024) | - | 151 | - | - | - | 15 | - | - |
O.J. Labe CFO | 416 | 386 | - | - | 36 | 35 | 29 | 29 |
C.A.M. van Atteveldt CRO (until 1 March 2025) | 81 | 311 | - | - | 9 | 35 | - | - |
I.C.C. van Oostwaard CRO (from 1 March 2025) | 292 | - | - | - | 28 | - | - | - |
P.A. Nijsse CCO (from 1 May 2024) | 319 | 193 | - | - | 35 | 23 | - | - |
A. Arooni COO a.i. (from 10 March 2025) | 354 | - | - | - | - | - | - | - |
J. van Goudswaard COO (until 1 March 2025) | 44 | 290 | 136 | - | 17 | 34 | - | - |
Total | 1,907 | 1,422 | 136 | - | 160 | 151 | 29 | 29 |
The Chief Executive Officer (CEO), Chief Financial Officer (CFO) and Chief Risk Officer (CRO) are also members of the Executive Board. The Chief Commercial Officer (CCO) and Chief Operational Officer (COO) are not.
As Chair of the Executive Committee P. Risch received an allowance for business expenses of EUR 5,100 (2024 P. Risch EUR 1,275 and G.J. Salden: EUR 5,100). The maximum allowance for the other statutory members of the Executive Committee is EUR 3,900 in 2025 (2024: EUR 3,900).
Effective from 1 January 2017 the remuneration of the Supervisory Board can increase by the same percentage as the increases under the Collective Labour Agreement for the banking industry. The remuneration policy for the Supervisory Board is directed towards market compatible remuneration that is irrespective of the company\u2019s result. The total remuneration of the Supervisory Board increased with 2% in 2025 (2024: increase of 6%). The remuneration of the Supervisory Board members reflects the nature of the company, the envisaged quality of the Supervisory Board members, the required availability for the task at hand, as well as the time required and aspects of responsibility and liability. Supervisory Board members do not own BNG shares or options and receive no additional remuneration through subsidiaries of the bank.
Members of the Supervisory Board who were appointed or resigned during the financial year received pro rata remuneration. Members of the Audit Committee & Risk Committee, the Selection and Appointment Committee, the Remuneration Committee and the Market Strategy Committee received an additional allowance for these duties. Furthermore, the Chair of the Supervisory Board received an allowance in addition to the basic remuneration. These allowances are set out in the \u2018Remuneration of Supervisory Board members\u2019 statement. The Supervisory Board members received an expense allowance of EUR 1,258 (2024: EUR 1,226).
Members who served on one or more committees received an additional expense allowance per committee of EUR 585 (Audit Committee and Risk Committee) and EUR 351 (Remuneration Committee and Human Resource Committee), respectively.
The amounts presented in the following table are in thousands of euros. These figures include additional payments and expense allowances and exclude VAT.
(amounts in thousands of euros) | 2025 | 2024 |
|---|---|---|
H. Arendse, chair | 54 | 48 |
Ms. F. de Vries, vice-chair | 48 | 43 |
J.C.M. van Rutte (until 25 April 2024) | - | 13 |
Ms K.T. Bergstein | 48 | 46 |
J.B.S. Conijn (until 25 April 2024) | - | 15 |
Ms M. Elsinga (from 25 April 2024) | 36 | 26 |
Ms M.E.R. van Elst | 40 | 38 |
L.K. Geluk | 37 | 43 |
C. Korthout (from 25 April 2024) | 48 | 34 |
Total | 311 | 306 |
Members of the Executive and Supervisory Boards of the company are indemnified by the company against any personal liability, except in the case of deliberate intent or gross negligence. In addition, the company has taken out a directors\u2019 liability insurance policy for members of the Executive and Supervisory Boards and employees acting on the company\u2019s behalf as members of the Executive Board or Supervisory Board of the company\u2019s subsidiary.
", "dimensions": { "concept": "ifrs-full:DisclosureOfRelatedPartyExplanatory", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "p-blocktag-i9539": { "value": "This relates to the BNG subsidiary BNG Gebiedsontwikkeling B.V. which is included in the consolidation. BNG has intercompany transactions with this party, which consist of the issue of private loans and advances, credit balances held in current accounts and off-balance sheet commitments. All of these intercompany transactions are eliminated from the figures in and notes to the consolidated financial statements.
Since 2020, BNG\u2019s remuneration policy consists solely of fixed remuneration components. The total fixed remuneration, granted to \u2018Identified Staff\u2019, i.e. individuals with direct influence on the bank\u2019s policy and risks, was EUR 6.9 million in 2025 (2024: EUR 6.2 million). The Identified Staff comprises of 40 individuals in 2025 (2024: 43).
The remuneration of the Identified Staff can be divided into three groups: Executive Committee, Senior management directly reporting to the Executive Committee and Other identified staff.
(amounts in thousands of euros) | 2025 | \u00a0 | 2024 | \u00a0 |
|---|---|---|---|---|
| \u00a0 | Fixed remuneration | One-off payment | Fixed remuneration | One-off payment |
Executive Committee | 1,936 | 136 | 1,451 | - |
Senior management | 4,090 | 174 | 3,858 | - |
Other identified staff | 764 | - | 912 | - |
Total | 6,790 | 310 | 6,221 | - |
In addition, the bank pays a monthly employer\u2019s pension contribution. Since 1 January 2015, pension accrual over salary in excess of EUR 100,000 is no longer possible under the current ABP pension plan. In 2025 this limit remained unchanged EUR 137,800 (2024: EUR 137,800). As a consequence of this cap for tax purposes and the lower pension accrual, BNG decided to compensate the employees concerned who were in the bank\u2019s employment on 1 January 2015 for lower pension accrual. The compensation is fixed as per 1 january 2015 and will not change over the years.
The remuneration of the Executive Committee is based on the principles formulated in the Remuneration Policy, the highlights of which are included in the Report of the Supervisory Board. The complete Remuneration Policy is published on bngbank.nl. Since 2002, the fixed remuneration component has only been adjusted by the percentages set out in the general Collective Labour Agreement for the banking industry. As per 2021 no deferred variable remuneration have occurred. Management and staff do not own BNG shares or options and receive no additional remuneration through subsidiaries of the bank.
(amounts in thousands of euros) | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 |
|---|---|---|---|---|---|---|---|---|
| \u00a0 | Fixed remuneration | One-off payment | Pension contributions | Compensation for pension accrual over salary >100K | ||||
P. Risch CEO (from 1 October 2024) | 401 | 91 | - | - | 35 | 9 | - | - |
G.J. Salden CEO (until 1 June 2024) | - | 151 | - | - | - | 15 | - | - |
O.J. Labe CFO | 416 | 386 | - | - | 36 | 35 | 29 | 29 |
C.A.M. van Atteveldt CRO (until 1 March 2025) | 81 | 311 | - | - | 9 | 35 | - | - |
I.C.C. van Oostwaard CRO (from 1 March 2025) | 292 | - | - | - | 28 | - | - | - |
P.A. Nijsse CCO (from 1 May 2024) | 319 | 193 | - | - | 35 | 23 | - | - |
A. Arooni COO a.i. (from 10 March 2025) | 354 | - | - | - | - | - | - | - |
J. van Goudswaard COO (until 1 March 2025) | 44 | 290 | 136 | - | 17 | 34 | - | - |
Total | 1,907 | 1,422 | 136 | - | 160 | 151 | 29 | 29 |
The Chief Executive Officer (CEO), Chief Financial Officer (CFO) and Chief Risk Officer (CRO) are also members of the Executive Board. The Chief Commercial Officer (CCO) and Chief Operational Officer (COO) are not.
As Chair of the Executive Committee P. Risch received an allowance for business expenses of EUR 5,100 (2024 P. Risch EUR 1,275 and G.J. Salden: EUR 5,100). The maximum allowance for the other statutory members of the Executive Committee is EUR 3,900 in 2025 (2024: EUR 3,900).
Effective from 1 January 2017 the remuneration of the Supervisory Board can increase by the same percentage as the increases under the Collective Labour Agreement for the banking industry. The remuneration policy for the Supervisory Board is directed towards market compatible remuneration that is irrespective of the company\u2019s result. The total remuneration of the Supervisory Board increased with 2% in 2025 (2024: increase of 6%). The remuneration of the Supervisory Board members reflects the nature of the company, the envisaged quality of the Supervisory Board members, the required availability for the task at hand, as well as the time required and aspects of responsibility and liability. Supervisory Board members do not own BNG shares or options and receive no additional remuneration through subsidiaries of the bank.
Members of the Supervisory Board who were appointed or resigned during the financial year received pro rata remuneration. Members of the Audit Committee & Risk Committee, the Selection and Appointment Committee, the Remuneration Committee and the Market Strategy Committee received an additional allowance for these duties. Furthermore, the Chair of the Supervisory Board received an allowance in addition to the basic remuneration. These allowances are set out in the \u2018Remuneration of Supervisory Board members\u2019 statement. The Supervisory Board members received an expense allowance of EUR 1,258 (2024: EUR 1,226).
Members who served on one or more committees received an additional expense allowance per committee of EUR 585 (Audit Committee and Risk Committee) and EUR 351 (Remuneration Committee and Human Resource Committee), respectively.
The amounts presented in the following table are in thousands of euros. These figures include additional payments and expense allowances and exclude VAT.
(amounts in thousands of euros) | 2025 | 2024 |
|---|---|---|
H. Arendse, chair | 54 | 48 |
Ms. F. de Vries, vice-chair | 48 | 43 |
J.C.M. van Rutte (until 25 April 2024) | - | 13 |
Ms K.T. Bergstein | 48 | 46 |
J.B.S. Conijn (until 25 April 2024) | - | 15 |
Ms M. Elsinga (from 25 April 2024) | 36 | 26 |
Ms M.E.R. van Elst | 40 | 38 |
L.K. Geluk | 37 | 43 |
C. Korthout (from 25 April 2024) | 48 | 34 |
Total | 311 | 306 |
In the first half of 2023, BNG lost the court case concerning the TLTRO-III. In May of 2025, the court ruled against BNG in the appeal to this initial ruling. BNG has subsequently filed a cassation appeal with the Dutch Supreme Court challenging the decision. The appeal is pending.
This includes all commitments arising from transactions for which the bank has issued guarantees on behalf of a third party. To a limited extent, these guarantees are covered by a counter guarantee from public authorities. These are mainly Letters of Credit with a remaining contractual maturity of more than five years. BNG records liabilities at the underlying principal amount that would need to be paid in the event of the borrower defaulting.
| \u00a0 | 31-12-2025 | 31-12-2024 |
|---|---|---|
Contingent liabilities | 442 | 501 |
| \u00a0 | \u00a0 | \u00a0 |
This includes all commitments arising from transactions for which the bank has issued guarantees on behalf of a third party. To a limited extent, these guarantees are covered by a counter guarantee from public authorities. These are mainly Letters of Credit with a remaining contractual maturity of more than five years. BNG records liabilities at the underlying principal amount that would need to be paid in the event of the borrower defaulting.
", "dimensions": { "concept": "ifrs-full:DisclosureOfContingentLiabilitiesExplanatory", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "p-blocktag-i9785": { "value": "This includes all commitments attributable to revocable current-account facilities.
| \u00a0 | 31-12-2025 | 31-12-2024 |
|---|---|---|
Revocable facilities | 5,204 | 5,383 |
| \u00a0 | \u00a0 | \u00a0 |
This includes all irrevocable commitments which can lead to the granting of loans and advances, and is divided as follows:
| \u00a0 | 31-12-2025 | 31-12-2024 |
|---|---|---|
Outline agreements concerning the undrawn part of credit facilities | 1,731 | 1,695 |
Contracted loans and advances to be distributed in the future | 683 | 1,479 |
Total | 2,414 | 3,174 |
According to contract, these contracted loans and advances will be distributed as follows:
| \u00a0 | 31-12-2025 | 31-12-2024 |
|---|---|---|
Up to 3 months | 385 | 952 |
3 to 12 months | 164 | 274 |
1 to 5 years | 119 | 228 |
Over 5 years | 15 | 25 |
Total | 683 | 1,479 |
Nearly all these loans and advances have a contractual term to maturity of more than five years. The average interest rate is 2.64% (2024: 2.55%). BNG states these obligations at the underlying, not yet recorded, principal amount.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCommitmentsExplanatory", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "section-blocktag-i10186": { "value": "There are no events after the balance sheet date to report that require adjustments to the figures or disclosure in the financial statements.
", "dimensions": { "concept": "ifrs-full:DisclosureOfEventsAfterReportingPeriodExplanatory", "language": "en", "entity": "scheme:529900GGYMNGRQTDOO93", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } } } }