5 Business segments
Inhoudsopgave Voorwoord Bestuursverslag Corporate governance
Other cases
Rabobank Group is subject to other legal proceedings for
which a provision was recognised. These cases are individually
less significant in size and are therefore not further described.
The total provision for those cases combined amounts to 89.
On top of the contingent liability cases described above for
which an assessment regarding a possible outflow is not yet
possible, Rabobank Group has identified a number of other, less
relevant cases in terms of size as a contingent liability. Because
these cases are less significant, Rabobank has chosen not to
describe these in detail.The principal amount claimed for those
contingent liability cases combined amounts to 61
The business segments Rabobank uses in its reporting are
defined from a management viewpoint.This means that the
segments are reviewed as part of the strategic management
of Rabobank and are used for the purpose of making business
decisions with different risks and returns.
Rabobank distinguishes five major business segments: domestic
retail banking; wholesale banking and international rural and
retail banking; leasing; real estate; and other segments.
Domestic retail banking mainly encompasses the activities
of the local Rabobanks, Obvion and Roparco. Wholesale
banking and international rural and retail banking supports
the Rabobank Group in becoming the market leader in
the Netherlands and focuses on the Food Agri sectors at
international level.This segment develops corporate banking
activities on a regional basis and in addition controls globally
operating divisions such asTreasury, Markets, Acquisition
Consolidated Financial Statements Company Financial Statements Pillar 3
Finance, Global Corporate Clients, Export Finance Project
Finance, Trade Commodity Finance and Financial Institutions
Group. The segment also actively involves International Direct
Retail Banking and Rabo Private Equity. International rural and
retail banking operations is part of the Rabobank label, with the
exception of ACC Loan Management. In the leasing segment -
DLL - is responsible for leasing activities and offers a wide range
of leasing, trading and consumer finance products in the Dutch
home market. Manufacturers, vendors and distributors are
globally supported in their sales with products relevant to asset
financing. In 2016 DLL sold the car leasing business Athlon to
Mercedes-Benz financial services. Rabobank recognised a gain
on the sale of 251 which is presented in the income statement
as 'Other net operating income'. As a result total assets have
decreased with 4.3 billion euro.
Real estate mainly encompasses the activities of the Rabo
Real Estate Group and LGFI Bank. The core activities are the
development of housing, financing and asset management.
In the Dutch market, Rabo Real Estate Group operates
through its BPDand Bouwfonds Investment Management
brands. The other segments within Rabobank includes various
sub-segments of which no single segment can be listed
separately.This segment mainly includes the financial results of
associates (in particular Achmea B.V.) and head office operations.
There are no customers who represent more than a 10% share
in the total revenues of Rabobank.
Transactions between the various business segments are
conducted under regular commercial terms. Other than from
operating activities, there is no other material comprehensive
income between the business segments. The financial reporting
principles used for the segments are identical to those
described in the'Accounting policies'Section.
211
Notes to the consolidated financial statements
