38 Other net operating income 39 Staff costs Inhoudsopgave Voorwoord Bestuursverslag Corporate governance Consolidated Financial Statements Company Financial Statements Pillar 3 Gains/ (losses) on other financial liabilities designated at fair value through profit or loss and derivatives used to hedge the interest rate risk of those financial liabilities mainly relates to fair value changes of the structured notes portfolio attributable to changes in i) market interest rates and ii) day-one gains that are directly recognised in profit or loss for an amount of 263. The results related to fair value changes of the structured notes due to changes in market interest rates are largely offset by the fair value changes of the derivatives used to hedge this interest rate risk. In 2015, a gain of 367 is included in 'Gains/ (losses) on other financial liabilities designated at fair value through profit or loss and derivatives used to hedge the interest rate risk of other financial liabilities designated at fair value'as the change in the fair value of the financial liabilities designated at fair value, that is attributable to changes in the credit risk of Rabobank itself. in millions of euros 2016 2015 Project income real estate activities 1,653 1,495 Project expenses and impairments real estate activities (1,319) (1,213) Net income real estate activitites 334 282 Operational lease income 1,371 1,373 Depreciation and impairments operational lease (980) (1,011) Net income from operational lease activities 391 362 Rental income from investment property 10 50 Depreciation and impairments investment property 6 (43) Net income from investment property 16 7 Result on sale of group companies 242 15 Other 421 215 Other net operating income 1,404 881 DLL sold the car leasing business Athlon to Mercedes-Benz financial services. Rabobank recognised a gain on the sale of 251. in millions of euros 2016 2015 Wages and salaries 3,101 3,194 Social security contributions and insurance costs 355 394 Pension costs - defined contribution plans 489 500 Pension costs - defined benefit pension plans 3 9 Release of other post-employment provisions (76) (65) Other staff costs 649 754 Staff costs 4,521 4,786 Expressed in FTEs, the number of internal and external employees in Rabobank was 45,567 (2015: 52,013). In 2011, following the implementation of CRD III and the regulations governing restrained remuneration policy, Rabobank Group adopted an amended remuneration policy: the Group Remuneration Policy.This policy is updated on a regular basis and has, as of 1 January 2015, been adjusted to include the provisions under the Dutch Act on Remuneration Policies for Financial Companies. Insofar as employees in the Netherlands are still eligible for variable remuneration, it never amounts to more than (on average over group employees) 20% of the fixed income. Outside the Netherlands, any variable remuneration never amounts to more than 100% of the fixed income. Insofar as identified staff (employees who can have a material influence on the risk profile of Rabobank Group) are eligible for variable remuneration, it is awarded for such a period that the risks associated with the underlying business activities are adequately taken into account. Payment of a significant portion of variable remuneration is therefore deferred. The immediate portion of variable remuneration is unconditional, whereas the deferred portion is conditional. The deferred portion vests after three years if the conditions are met. Among other things, it is assessed whether there has been a significant reduction in financial performance or a significant change in risk management at Rabobank Group and/or business unit that puts the circumstances assessed when the relevant variable remuneration was awarded in a different perspective. In principle, the right to any provisionally allocated remuneration lapses when the staff member's employment ends. 50% of both the direct and the deferred portion of the variable remuneration is allocated in cash. The cash component of the direct portion is immediately awarded following allocation. The cash component of the deferred portion is awarded to employees only after vesting (after a period of three years). 50% of the direct and the deferred portion of the variable remuneration is allocated in the form of an instrument (instrument component) i.e. the Deferred Remuneration Note (DRN).The value of a DRN is linked directly to the price In millions of euros 2016 2015 Gains/ (losses) on interest rate instruments 166 639 Gains/ (losses) on equity instruments 28 (99) Gains/ (losses) on foreign currency 359 64 Other (6) (1) Gains/ (losses) on financial assets and liabilities at fair value through profit or loss 547 603 The net foreign exchange gains/ (losses) included in line item Gains/ (losses) on foreign currency amount to 329 (2015: -346). 236 Rabobank Jaarverslag 2016

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Jaarverslagen Rabobank | 2016 | | pagina 237