The Netherlands’ fourth biggest banking group Volksbank booked net profit of €431 million last year, 126% up on 2022. Earnings were driven by a 53% increase in net interest income, while higher charges for banking services added a further 25%, the state owned financial services group said.

At the same time costs rose 23% due to an increase in staffing levels, pay rises and higher expenditure on anti-money laundering measures.

Volksbank, the parent bank of financial services companies  SNS, ASN and Regiobank, was told by the central bank last year it faced a fine for failing to check its clients properly for money laundering and links with terrorism.

The bank did say it expected to fully comply with the central bank’s demand for an improved strategy to monitor its customers by April 1.

Volksbank is the third of the big Dutch banks to again report a huge surge in profits on the back of higher interest rates. ABN Amro will present its 2023 earnings figures next week.