BinckBank has reported its result from financial instruments rose strongly in 2017 due to the increased financing level of Binck turbos. The income from the turbos, which have been offered free of charge since October 2017, rose by €3.2m, or 125%, to €5.7m compared with €2.5m in 2016.

'For our self-investing customers, we started offering trading in Binck turbos with no transaction fees in the fourth quarter of 2017,' said Vincent Germyns (pictured), chairman of the executive board, in a statement. 'This led to an increase in the number of turbo transactions and the financing level. We also enabled private investors to take part in securities lending programmes, and the first customers were able to generate additional returns on their investments in the fourth quarter.'

The Dutch online broker's adjusted net result for 2017 was €34.9m, representing adjusted net earnings of €0.52 per share, up from €30.5m (€0.45 per share) recorded in 2016. Income from operating activities in 2017 remained almost the same as in 2016 (+1%).

BinckBank achieved higher net interest income overall, mainly due to a growing proportion of investments in Dutch residential mortgages. On the other hand, there was a decrease in net commission income of €3.2m (-3%) in 2017. In the fourth quarter of 2017 customers conducted more transactions (+24%) compared with the previous quarter, resulting in an increase of €5.3m in net commission income (+23%).

The balance sheet item derivatives, which had assets of €37.4bn and liabilities of €37.1bn as of December 31, 2017, comprises of Binck turbos, SRD contracts and interest rate swaps. Starting in September 2017, BinckBank entered into interest rate swaps to manage the interest rate risk of the balance sheet. The interest rate swaps were designated as hedging instrument in the hedge accounting relationship, whilst the cash flows relating to the mortgage receivables are designated as hedged item.

As of December 31, 2017, BinckBank entered into interest rate swaps for an amount of €96m notional value (2016: nil). The increase in the value of this item is primarily the result of larger positions in the turbos during 2017. Against the position in the turbos held is the position of the turbos issued to clients under the financial liabilities held for trading. The turbos held are economic hedge of the market risk of the position on issued turbos.

At the end of December 2017, Binck had €1.1bn assets under management (AUM), down from €1.3bn the previous year and €1.7bn in 2015. Assets under administration grew by 14% in 2017 to €26bn (FY2016: 22.8bn). The number of transactions in 2017 was 7.7 million, level compared to 2016 but down from 9.3 million transactions in 2015 while the cost/income ratio (excluding IFRS amortisation), at 79% was level compared to 2016.

On January 19, 2018 BinckBank announced its intention to sell its 60% holding in Think ETF Asset Management (Think) to Van Eck Associates Corporation. The sale is expected to be completed at the end of the first quarter of 2018.

Click the link to view the Binck full year 2017 results and the presentation.

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