Annual report 2008

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• BinckBank overview
  • Profile of BinckBank
  • Key figures
  • Chairman's message
  • Important events in 2008
  • BinckBank N.V. shares
  • Vision, mission, strategy and objectives
  • Strengths, weaknesses, opportunities and threats
• Report of the Management Board
  • Report of the Management Board
  • Risk management under Basel II and Pillar III disclosure
  • In-control statement
  • Personnel and organisation
  • Corporate social responsibility
• Report of the Works Council
• CVs of Management Board and Supervisory Board
  • CVs of Management Board members
  • CVs of Supervisory Board members
• Report of the Supervisory Board
  • Introduction
  • Composition of the Management Board and Supervisory Board
  • Supervisory Board meetings in 2008
  • Meetings of the Audit Committee in 2008
  • Remuneration of the Management Board
  • Consultation with the Staff Council
  • Financial statements and dividend
  • Conclusion
• Corporate governance
  • Introduction
  • Legal structure
  • Management Board
  • Supervisory Board
  • Summary of the 2008 remuneration report
  • Compliance with the Dutch Corporate Governance Code (the 'Code')
  • Supervisory Board
  • Anti-takeover defences
  • Article 10 of the Takeover Directive Decree
• Financial Statements
  • Consolidated Financial Statements
  • Notes to the consolidated financial statements
  • Notes to the consolidated balance sheet
  • Notes to the consolidated income statement
  • Company Financial Statements
  • Notes to the company financial statements
  • Notes to the company balance sheet
• Other information
  • Auditors' Report
  • Provisions of the Articles of Association in respect of priority shares (Articles 15 and 21)
  • Provisions of the Articles of Association in respect of appropriation of profit (Article 32)
  • Proposal for appropriation of the result
• Definitions and ratios

Binck Bank

Notes to the consolidated income statement

41. Liabilities not shown on the face of the balance sheet

2008

2007

Contingent liabilities

Liabilities in respect of contracts of suretyship and guarantees

3,086

2,423

Liabilities in respect of irrevocable facilities

-

-

To meet the requirements of its clients, BinckBank offers products such as contracts of suretyship and

guarantees in relation to loans. The underlying value of these products is not presented on the face of the

balance sheet. The above figure represents the maximum potential credit risk for BinckBank attaching to these

products on the assumption that all its counterparties should default on their contractual obligations and all

existing collateral should prove worthless. Guarantees include both credit-substituting and non-credit-

substituting guarantees. In most cases, guarantees can be expected to expire without a call being made on

them and they will not give rise to any future cash flows.

On 22 December 1995, Bank Labouchere N.V., a former owner of Alex, and VEB concluded an agreement

concerning the provision of brokerage services to VEB members. The agreement was amended on 28 March

2003, substituting Rabobank for Bank Labouchere N.V. The agreement was most recently amended as regards

the following aspects: (I) the product VEB Bottom-Line was changed to Alex Bottom-Line, (II) the range of

products offered was extended, (III) the services would henceforward be provided for a profitable fee instead of

at cost and (IV) BinckBank would assume Rabobank's responsibilities under the contract following the

acquisition of Alex.

If BinckBank terminates the amended VEB agreement, it will be liable to pay an amount equal to the custody fee

and dividend commission paid by each client of Alex Bottom-Line on entry into the agreement plus the amount

of any custody fee and dividend commission additionally paid by each client on exceeding set limits.

Lease commitments

The company has leases on office premises in the Netherlands, Belgium, France and Spain. It has also entered

into operating lease contracts for the vehicle fleet for periods of less than five years. The combined expense

relating to office rents and operating lease payments for the vehicles in 2008 was approximately € 3.1 million

(2007: € 2.1 million).

The aged analysis of the outstanding liabilities is as follows:

Less than one year

3,689

One to five years

4,881

Longer than five years

1,094

Lawsuits

BinckBank is involved in various legal proceedings. Although it is not possible to predict the outcome of current

or impending lawsuits, the Management Board believes ­ on the basis of information currently available and

after taking legal counsel ­ that the outcomes are unlikely to have material adverse effects on BinckBank's

financial position or profitability.

Collective Guarantee Scheme

The Financial Supervision Act (WFT) came into operation on 1 January 2007. One of the things provided by the

act is the deposit guarantee system, replacing the Collective Guarantee Scheme. The act also introduced the

investors compensation system, which replaces the previous Investors Compensation Scheme. Under the deposit

guarantee system, the first € 20,000 which a customer has in a current account or a savings account is fully

guaranteed and the next € 20,000 is 90% guaranteed. The investors compensation system provides for a refund

of up to a maximum of € 20,000 per account holder. If a credit institution finds itself in difficulties and does not

have sufficient funds to pay all or part of the guaranteed amounts to its account holders, the Nederlandsche

Bank will make up the difference. The total amount paid out by the central bank will then be recovered from the

banks on a pro rata basis. On 7 October 2008, the Minister of Finance decided to increase the cover under the

deposit guarantee system for the deposits of account holders in the Netherlands to € 100,000 per person per

bank for a period of one year. During this period, the deposit guarantee system guarantees an amount of up to

€ 100,000 per person per institution (regardless of the number of accounts). In the case of joint accounts, both

account holders may claim compensation under the deposit guarantee system, with a joint balance of up to

€ 200,000 in that case being fully covered.