The operating profit increased from EUR 26 million in the first half-year of 2020 to EUR 33 million in the first half-year of 2021.
The interest margin in 2021 decreased by EUR 9 million. The net impact of lower funding costs and lower gross margin on the mortgage portfolio resulted in a decrease of the interest margin bij EUR 7 million. Both the mortgage production and the margins on new production decreased compared to last year as a consequence of increased competition and appetite for mortgages by non-banks. The mortgage production for its own balance sheet amounts to EUR 0.4 billion in the first half of 2021 (EUR 0.2 billion in first half of 2020). Combined with prepayments of EUR 0.9 billion, the mortgage portfolio of Achmea Bank decreased from EUR 11.6 billion to EUR 11.1 billion.
The releases of the loan loss provision in 2021 amounts to EUR 11 million (2020 EUR 4 million loss). The lower level of the loan loss provision as per June 2021, is related to implementation of a second generation of IFRS9 risk model combined with improvement of the macro-economic outlook in 2021, the positive development of housing prices and inherent low credit risk profile of the mortgage portfolio of Achmea Bank.
As of 1 October 2020, Achmea's operational mortgage activities have largely been centralised within Syntrus Achmea Real Estate & Finance (SAREF), as part of the strategy of Achmea to increase its market share in the mortgage market in the coming years. This transfer includes the production of new mortgages for Achmea Pensioen- en Levensverzekeringen N.V. which resulted in a decrease of the fee income for Achmea Bank and lower cost allocation by Achmea B.V.