NIBC Bank N.V.

The stable outlook on NIBC indicates that we expect the bank to continue to execute its strategy as it has in recent years, and to show no change in risk appetite. NIBC is also likely to maintain robust capital and good asset quality over the next 18-24 months, thanks to the ongoing derisking strategy and management's expertise. We anticipate that NIBC's funding profile will remain skewed toward wholesale funding, and that it will ensure this is well-diversified. We could lower the ratings over the next 18-24 months if we observed that nonperforming exposures and credit losses were rising faster than predicted. This could occur if NIBC expanded its risk appetite or if business concentration increased. We could also lower the

...NIBC Bank N.V.'s management team has successfully refocused the bank on lower risk businesses, while improving the cost-efficiency of its business model. Dutch housing loans comprise 80% of the bank's business, followed by asset-based lending (11%) and platform finance (6%) at end of June 2024. NIBC has successfully divested noncore activities, including leveraged finance, offshore energy, and collateralized loan obligations, as well as its small equity and investment loan portfolios, which helped the bank to reduce its overall risk exposure and earnings volatility. The reduction in exposure and volatility was further reinforced by NIBC's disposal of its $1 billion shipping portfolio in June 2024....

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