• Achmea Bank N.V. reported for 2022 an operating profit of EUR 18 million, EUR 13 million after tax (2021: EUR 52 million, after tax EUR 39 million)
  
• The Common Equity Tier 1 Capital Ratio remains strong at 18.2% (2021: 20.9%)
  
• The mortgage portfolio increased by EUR 1.3 billion (+11.7%), to EUR 12.4 billion, through higher mortgage production (EUR 2.0 billion) and the acquisition of mortgages from a.s.r. (EUR 0.9 billion)
  
• The increase reflects the effectiveness of the Bank’s growth and diversification strategy
  
• Climate transition plan issued in 2022

Achmea Bank reported an operating profit before income taxes of EUR 18 million in 2022 (2021 EUR 52 million). The operating profit declined mainly due to a lower interest margin of EUR 20 million and higher impairment charges of EUR 13 million. The latter due to an incidental release relating to the implementation of a second generation IFRS 9 model in 2021. The interest margin decreased from EUR 138 million to EUR 118 million as a result of lower compensation for early redemptions and lower interest income for the mortgage portfolio. During 2022, more specifically the second half, the development of the interest margin is positive due to an increase of the mortgage production and higher margins on new and repricing mortgages compared to last year. The rise in interest rates resulted in a shift of the mortgage market to shorter fixed-interest periods (<=10y) which is positive for Achmea Bank, given our chosen strategy. In the 2nd half of 2022 the interest margin (EUR 63 million) increased compared to the 1st half of 2022 (EUR 55 million), which reflects this positive development.

The mortgage production of Centraal Beheer for Achmea Bank increased due to the shift of the mortgage market to shorter fixed-interest periods together with a strong price position production increased by EUR 1.2 billion (+ 250%) to EUR 2.0 billion in 2022 (2021: EUR 0.8 billion). Combined with prepayments of EUR 1.6 billion and the acquired portfolios from a.s.r. (EUR 0.9 billion), the Achmea Bank mortgage portfolio increased by EUR 1.3 billion (+11.7%) to EUR 12.4 billion. This increase reflects the effectiveness of the Bank's growth and diversification strategy.

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