28 Subordinated liabilities
29 Con tin gen t liabilities
Inhoudsopgave Voorwoord Bestuursverslag Corporate governance
2016 2015
Discount rate 1.7% 2.5%
Salary increases 1.7% 1.6%
Price inflation 1.7% 1.6%
Sensitivity analysis
Rabobank is exposed to risks regarding their defined benefit
plans related to the assumptions disclosed in the table below.
The sensitivity analysis of these most significant assumptions
has been determined based on changes of the assumptions
occurring at the end of the reporting period that are deemed
reasonably possible.
In millions of euros
Change in
assumption
Effect on defined
benefit obligation of
increase
Effect on defined
benefit obligation of
decrease
2016
2015
2016
2015
Discount rate
0.25%
(25)
(21)
27
23
Salary increases
0.25%
18
14
(17)
(14)
Price inflation
0.25%
9
8
(7)
(8)
Mortality
1 year
21
17
(20)
(17)
Asset-liability matching strategy
The assets that would provide the closest match to the
cashflows of the ACC Loan management defined benefit plan
are a combination of fixed interest and index-linked bonds.
Below is a comparison of the asset allocation at 31 December
against the scheme's target asset allocation.The assets are all
quoted in an active market.
Asset allocation
Target asset allocation
2016
2015
2016
2015
Shares and alternatives 10% 10% 10% 10%
Interest-bearing securities
47%
45%
45%
45%
Alternatives
41%
41%
42.5%
40%
Other
2%
4%
2.5%
5%
Total
100%
100%
100%
100%
The alternatives are investments such as commodities, absolute
return investments and hedge funds.
Estimated contribution
The estimated contributions to pension plans for 2017 are
approximately 6 (2016: 6).
27.2 Other employee benefits
Other employee benefits mainly comprise liabilities for future
long-service awards for an amount of 35 (2015: 95).
Consolidated Financial Statements Company Financial Statements Pillar 3
in millions of euros
2016
2015
Rabobank
16,847
15,479
Other
14
24
Total subordinated liabilities
16,861
15,503
In the following table details of the issues of subordinated
liabilities are shown:
Subordinated liabilities
Notional
(in millions)
Currency
Coupon
Year of
issuance
Year of maturity
1,500
USD
3.75%
2016
2026
225
AUD
5.00%
2015
2025, early
repayment 2020
475
AUD
Variable
2015
2025, early
repayment
possible 2020
1,500
USD
4.375%
2015
2025
1,250
USD
5.25%
2015
2045
1,000
GBP
4.625%
2014
2029
2,000
EUR
2.50%
2014
2026, early
repayment
possible in 2019
50,800
JPY
1.429%
2014
2024
1,000
EUR
3.875%
2013
2023
1,750
USD
4.625%
2013
2023
1,250
USD
5.75%
2013
2043
1,000
EUR
4.125%
2012
2022
500
GBP
5.25%
2012
2027
1,500
USD
3.95%
2012
2022
1,000
EUR
3.75%
2010
2020
1,000
EUR
5.875%
2009
2019
Credit related off balance sheet commitments
Loan commitments represent the unused portions of funds
authorised for the granting of credit in the form of loans,
financial guarantees, letters of credit and other lending
related financial instruments. With regard to the credit risk
exposure from loan commitments, Rabobank is potentially
exposed to losses amounting to the unused portion of the
authorised funds. The total expected loss is lower than the total
of the unused funds.This is because loan commitments are
subject to the clients in question continuing to meet specific
standards of creditworthiness. Financial guarantees represent
irrevocable undertakings that, provided certain conditions are
met, Rabobank will make payments on behalf of clients if they
are unable to meet their financial obligations to third parties.
Rabobank also enters into credit arrangements in the form of
credit facilities made available to safeguard clients' liquidity
requirements, but which have not yet been drawn upon.
230 Rabobank Jaarverslag 2016