Volksbank raises straw pot, financial director has to leave

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De Volksbank has made 31 percent less profit in the past six months than the year before, due to an increase in the straw pot by 45 million euros. The state bank left a net profit of 106 million euros, according to an interim trade report on Friday. The bank also announced that financial director Pieter Veuger is leaving.

The straw pot, which consists of money set aside for loans that may not be repayable, has been raised as a precautionary measure due to the corona crisis. The financial group behind SNS, ASN Bank, BLG Wonen and Regiobank says it takes into account “pessimistic economic future scenarios,” said CEO Maurice Oostendorp.

33 million euros of the straw pot concerns provisions on mortgages. De Volksbank is mainly active in the consumer market, with savings accounts and mortgages. With regard to the several hundred corporate clients, the bank only serves small and medium-sized businesses.

Financial director

On Thursday, Rabobank’s profit also turned out to have shrunk by more than 80 percent due to the setting aside of money. ABN Amro said on Wednesday that it would slim down outside of northwestern Europe.

At the same time as the half-year figures, de Volksbank announced that financial director Pieter Veuger must leave. According to the supervisory board, “the dynamic between the board members is insufficient for constructive cooperation.” The council emphasizes that the departure has nothing to do with the bank’s strategic direction. Veuger’s departure coincides with that of CEO Oostendorp, who will be succeeded by top man Martijn Gribnau.

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