Descripción de los factores extrínsecos e intrínsecos

In the conduct of its operations BinckBank faces a variety of risks. BinckBank aims to minimise the risk profile so that the impact of unexpected events on both profits and equity is limited. BinckBank devotes considerable attention to risk management and employs risk management systems. Adequate control measures, reporting systems and information systems and incorporating limits are part of the risk management process.

The identification of risks and the creation and updating of appropriate control measures constitute an ongoing process within BinckBank.

Risk management policy and organisation is currently undergoing careful appraisal and the risk management processes adopted and implemented by Alex and by BinckBank are being evaluated and integrated.

Basel II

The new Basel II banking industry guidelines introduce new capital adequacy requirements for banks in order to manage banking risks more effectively. The new rules came into operation on 1 January 2007 and will be implemented by BinckBank with effect from 1 January 2008. Basel II represents tougher requirements for many banks but, for BinckBank, the net effect is beneficial;

although the balance sheet must include a greater amount of capital to cover operational risks, the capital requirements matching BinckBank’s lending to clients against securities (credit risk) have been eased. Basel II offers various approaches for implementing the requirements with respect to credit risk, market risk and operational risk.

BinckBank has decided on the standard approach for the credit risk. Apart from granting credit against the collateral in securities, loans and advances are granted to central government and local authorities and credit institutions. BinckBank also incurs a credit risk on the investments in its investment portfolio of bonds. All of BinckBank’s lending to central government and local authorities

and credit institutions is to borrowers with at least a AA- credit rating (S&P or equivalent). BinckBank has opted to use the ‘basic indicator approach’ for market risk and operational risk.

Capital management

BinckBank’s policy is aimed at optimising the capital structure, striking a balance between sound capital ratios on the one hand and high returns plus maximum shareholder value on the other hand.

The guidelines issued by the Nederlandsche Bank (DNB) lay down minimum capital requirements.

BinckBank’s capital is compared with the bank’s assets, both presented on the face of the balance sheet and off the balance sheet. These assets are weighted according to risk. The standard for the total actual own funds (BIS ratio) is generally 8% for banks. BinckBank’s internal capital standards are higher because the financial soundness of the bank is important to our shareholders and clients alike.

The drop in the BIS ratio under Basel II to almost 8%

as at 31 December 2007 was connected with the acquisition of Alex, whose assets predominantly carried a 20% risk weighting. In line with BinckBank’s treasury policy, the majority of these assets were converted into assets with a weighting of either 0% or 10% following the acquisition. The BIS ratio in January 2008 consequently showed a marked improvement.

122Annual report 2007

x € 1,000 ^{Minimum Actual Minimum Actual}

(based on Basel I ruling) 2007 2007 2006 2006

Core capital 26,044 54,887 10,214 53,695

Core capital ratio 4.0% 8.4% 4.0% 21.1%

Total of core capital plus

supplementary capital 52,087 54,282 20,428 53,695

Total capital ratio/ BIS ratio 8.0% 8.3% 8.0% 21.1%

Credit risk Unweighted Weighted Unweighted Weighted

2007 2007 2006 2006

– 0% risk weighting 764,296 - 64,585

-– 10% risk weighting 147,414 14,741 -

-– 20% risk weighting 447,727 89,545 168,944 33,789

– 100% risk weighting 535,125 535,125 197,988 197,988

Weighted items with credit risk 639,411 231,777

Weighted items with other risks 11,677 23,573

Risk-weighted assets 651,088 255,350

The structure of the actual own funds is as follows:

x € 1,000 2007 2006

Issued and paid-up share capital 7,709 3,084

Share premium reserve 392,395 20,855

Treasury shares (487) (956)

Unappropriated profit 32,155 24,009

Other reserves 35,044 24,297

Total equity 466,816 71,289

Less: proposed dividend (11,564) (8,875)

Less: unrealised gains and losses (before tax) 1,866 1,362

Less: goodwill (152,929) (8,881)

Less: other intangible assets *) (249,302) (930)

Core capital 54,887 53,695

Less: non-qualifying assets (see note 13) (605)

-Total capital 54,282 53,695

*) The carrying amount of the intangible assets identified at the time of acquisition.

123Annual report 2007 Liquidity risk

The matching or otherwise of the maturities of assets and liabilities is of fundamental importance to BinckBank. It is unusual for banks to have perfectly matching maturities of assets and liabilities because transactions are usually not predictable and are also highly varied. The

maturities of assets and liabilities and the ability to obtain replacement funding for interest-bearing liabilities as and when they fall due, at acceptable cost, are important factors in assessing the bank’s liquidity and the extent to which it is vulnerable to changes in interest rates and exchange rates.

BinckBank deals with a large number of investors, all carrying out securities transactions. The debits and credits on current accounts and the borrowings and repayments of loans and advances against securities affect the amount of funds entrusted on a daily basis. Given the transaction volumes and the changes which can take place in the capital market and the money market, BinckBank has opted to invest the funds entrusted largely in demand deposits with financial institutions and in listed interest-bearing securities, such as government bonds. By keeping to short-term investments as far as possible, the assets can be readily liquidated.

Historical analyses reveal a correlation between movements on clients’ accounts and the activities on the stock markets. The management has set limits concerning the minimum position to be held with regard to cash balances and available call money.

The Treasury Department keeps a close watch on the expected cash flows of funds entrusted on a daily basis and decides how much of these funds can be invested in interest-bearing securities. The cash flow projections are made over time horizons of one day, one week and one month.

The following table presents the maturity calendar of the assets and liabilities as at balance sheet date.

Listed securities carried at fair value through profit or loss and assets held for sale representing readily liquidated investments have been treated as available on demand. Also considered to be available on demand are assets falling due within one week.

124Annual report 2007

Maturity calendar On < 3 > 3 > 1 year > 5 years Total

as at 31 December 2007 demand months months < 5 years

< 1 year Assets

Cash 9,522 - - - - 9,522

Banks 422,028 - - - - 422,028

Loans and receivables 492,762 - 5,000 - - 497,762

Interest-bearing securities 876,333 - 11,178 12,721 - 900,232

Shares and other variable-income securities 63 - - - - 63

Tax 7,396 - - - - 7,396

Deferred tax assets - 347 1,041 5,455 - 6,843

Other assets 100 7,560 - - - 7,660

Prepayments and accrued income 23,659 - - - - 23,659

Total assets 1,831,863 7,907 17,219 18,176 - 1,875,165

Liabilities

Funds entrusted 1,772,822 - - - - 1,772,822

Deferred tax liabilities 82 - - - - 82

Other liabilities 32,751 - - - - 32,751

Accruals and deferred income 22,152 - - - - 22,152

Total liabilities 1,827,807 - - - - 1,827,807

Liquidity surplus/(deficit) 4,056 7,907 17,219 18,176 - 47,358

Maturity calendar On < 3 > 3 > 1 year > 5 years Total

as at 31 December 2006 demand months months < 5 years

< 1 year Assets

Cash 5,672 - - - - 5,672

Banks 126,746 37,871 - - - 164,617

Loans and receivables 173,593 5,000 - 5,000 - 183,593

Interest-bearing securities 26,802 19,814 4,073 17,139 - 67,828

Shares and other variable-income securities 24,937 - - - - 24,937

Tax 5,443 - - - - 5,443

Deferred tax assets - 133 398 2,369 63 2,963

Other assets 38,020 - - - - 38,020

Prepayments and accrued income 4,969 - - - - 4,969

Total assets 406,182 62,818 4,471 24,508 63 498,042

Liabilities

Funds entrusted 383,543 - - - - 383,543

Liabilities in respect of securities 27,755 27,755

Deferred tax liabilities 109 - - - - 109

Other liabilities 21,061 - - - - 21,061

Accruals and deferred income 7,993 - - - - 7,993

Total liabilities 440,461 - - - - 440,461

Liquidity surplus/(deficit) (34,279) 62,818 4,471 24,508 63 57,581

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