Belfius has reported organic growth of savings and investments reached €2.6bn in the first half of 2018, up 22% from the same period in 2017, representing the highest level posted since 2011, despite an environment of persistent low rates and market volatility, according to the bank-insurer.

In half-year 2018, Belfius achieved a 31% share of the Belgian market by collecting €406m from 19 retail structured products, according to SRP data. Last year, during the same period the bank sold €476m (from 24 products) accumulating in a 21% market share while five years ago, in the first half of 2014, despite sales of €899m (from 30 products), Belfius only held 19% of the Belgian market.

Of the 19 products issued by the bank year to date, five were linked to the interest rate (including four steepeners) while the remaining 14 products were linked to a single equity index of which the Solactive Digital Economy was the most frequently used (five products). Other indices seen in the first half of 2018 were the iStoxx Europe Demography 50 (four products), Stoxx Europe 600 Healthcare (two), while single issues were linked to the Cac 40, Eurostoxx 50 and Eurostoxx Banks.

In the first half-year, out of a total of €8.2bn, Belfius granted €4.2bn of new long-term funding in the Belgian economy to small and medium-sized enterprises (SME), self-employed and liberal professions and to corporate customers (up 23% from the same period of 2017). The bank took part in 44% of available mandates and, on the market, issued €1.1bn in short-term issues (average outstanding on commercial papers) and long-term issues (medium-term notes and bonds).

In debt capital markets (DCM), Belfius took part in 85% of available mandates for (semi-)public customers in the first half of 2018, issuing €3.2bn of funding means in the form of short-term issues and long-term issues.

Life insurance (unit-linked and traditional) premiums stood at €656m in half-year 2018 , up 2.7% compared to the same period of 2017 with unit-linked (Branch 23) premiums going up strongly (+11.9%) thanks to growing product suite and customer demand, according to bank-insurer.

Belfius launched two Branch 23 products so far this year, their first life-wrapped structures since the first half of 2015, according to SRP data. Both products sold a combined €132m and included Belfius Invest Accelerator 06-2026, the best-selling product in the Belgian market during the first six months of 2018. The capital protected product, which participates 200% in the upside performance of the iStoxx Europe Demography 50 Index, collected sales of €82m during the subscription period.

The debt securities & equity instruments stood at €28.9bn as at June 30, 2018, down €1.9bn from €30.8bn on January 1. The debt securities & equity instruments portfolio is situated in the insurance group for €12.6bn (January 1, 2018: €13.2bn), and in the banking group for €16.3bn (January 1, 2018: €17.6bn).

'The difficult rate and market context make it necessary to diversify our earnings further and to continue in the efforts we have been making over last years to control costs and to achieve operational excellence,' said Jos Clijsters (pictured), chairman of the board of directors, commenting on the results. 'It is only in this way that we can further strengthen our sustainable role in favour of Belgian society and economy.'

Click the link to view the 1H2018 results, the presentation and the full report.

Related stories:
Natixis delivers solid half-year performance despite low equity derivatives activity in Asia

Societe Generale reports good level of structured products revenues despite lower demand

BNP Paribas reports YoY decrease in CIB revenues despite recovery in equity derivatives