Balance sheet

Mainly due to the high level of disbursements total assets rose by €0.8 billion to a total of €5.1 billion.

The rise in total assets can be contributed to the growth in the loan portfolio, investments in equities, interest-bearing securities and short-term deposits. The total asset growth was financed by debt securities and debentures & notes, short-term credits and shareholders' equity.

The on-balance loan portfolio grew by €0.3 billion to €2.6 billion. The percentage of non-performing loans (adjusted for risk participations) in our total loan portfolio was 2.9% (2010: 3.6%), which reflects the stable quality of our portfolio.

In 2011, we augmented our investor base, which gave us the opportunity to further diversify our funding portfolio. We raised €0.5 billion in long-term funding from diverse markets and currencies in 2011, with tenors varying from two years to 10 years.

Shareholders' equity increased by €151 million to a total of €1,665 million due to the accumulated net profit in 2011 and the increased equity available for sale reserve.

FMO's strong capital base is reflected in the high BIS ratio of 29.4% (2010: 29.0%). FMO has an additional, more prudent approach to assess the risk weighting of our loan and equity portfolio in the emerging markets. We have reviewed and refined our internal approach. Our scorecard was benchmarked against peers and best practice in the industry and validated by one of the leading rating agencies.

The BIS ratio based on our internal approach is well above the minimum required by the Dutch Central Bank. Based on the Basel II requirements and our more prudent internal approach, we conclude that FMO has a very strong capital base. This continuously ensures a healthy basis for the inherent risks related to our business.