In this FY24 edition of State of the Banks, we delve into the performance of Dutch banks and dissect the strategic decisions they have undertaken. Strategic agendas remained focused on simplification, digitalization, and cost discipline. Although operating expenses increased across the board, the impact on cost-to-income ratios was contained. Investments in AI, automation, and standardization are beginning to yield results, while rising staff costs—driven by tight labor markets and ongoing CLA negotiations—are expected to remain a structural challenge.
Credit quality remained robust, even as the number of bankruptcies in the Dutch economy increased significantly. Non-performing exposures rose only modestly, reflecting prudent risk management practices and a supportive macroeconomic environment. Capital positions, while slightly lower due to shareholder distributions and rising risk-weighted assets, remained well above regulatory minimums. Looking ahead, the anticipated implementation of Basel IV is expected to release additional capital buffers, potentially paving the way for renewed balance sheet growth.
We invite readers to explore the comprehensive insights and analyses offered in this edition of State of the Banks, offering a 360-degree view of the dynamic Dutch banking industry in FY24. This report is designed to provide valuable perspectives for professionals, stakeholders, and industry enthusiasts, highlighting the challenges and opportunities that are shaping the Dutch banking landscape.
