Other notes to the financial statements
27 Professional securities transactions
and assets not freely available
28 Con tin gen t liabilities
Inhoudsopgave Voorwoord Bestuursverslag Corporate governance Consolidated Financial Statements Company Financial Statements Pillar 3
Professional securities transactions in which Rabobank
lent securities.
In millions of euros 2016 2015
Securities lent for use:
Loans and advances to banks 12,596 17,944
Loans and advances to customers 16,536 19,783
Total 29,132 37,727
Liabilities relating to operating leases
Rabobank has concluded various operating lease contracts as
lessee, mainly with respect to properties, information systems
and cars. The future net minimum lease payments under non-
cancellable operating leases can be broken down as follows:
in millions of euros 2016 2015
Not later than 1 year 124 22
Later than 1 year but not later than 5 years 279 74
Later than 5 years 346 84
Total liabilities relating to operating leases 749 180
Professional securities transactions in which Rabobank
lent securities.
In millions of euros 2016 2015
Securities lent:
Due to banks 418 81
Due to customers 209 486
Total 627 567
The assets referred to in the table below (with exception
to professional securities transactions) were provided to
counterparties as security for (contingent) liabilities. If Rabobank
remains in default the counterparties may use the security to
settle the debt.
The gross minimum lease payments The expected future
minimum lease payments receivable from sub-leases are
nil (2015: nil).The operating lease expenses are 52 (2015: 24).
These are included in 'Other administrative expenses' in the
statement of income.
Contingent liabilities related to income tax
The European Commission has addressed questions to the
Dutch government about article 29a of the Dutch Corporate
Income Tax Code. If the European Commission would decide
to start a formal investigation and ultimately would conclude
that this is a case of state aid, Rabobank may have to repay tax
benefits it enjoyed from 2015 onwards.
Article 29a of the Dutch Corporate Income Tax Code was
included in the Dutch Corporate Income Tax Code so that
capital instruments issued by credit institutions and which
are covered by EU regulation 575/2013 would be considered
tax deductible. In this context, Rabobank issued Capital
Securities in January 2015 and in April 2016, amounting
respectively to EUR 1.5 billion at a fixed interest rate of 5.5%, and
EUR 1.25 billion at a fixed interest rate of 6.625%.The contingent
liability related to this matter amounts to 54.
In millions of euros
2016
2015
Assets not freely available:
Related to type of
liabilities:
Loans and advances to banks
Derivatives
4,702
5,178
Loans and advances to customers
Due to customers
5,978
6,758
Interest-bearing securities
Due to customers
6,276
450
Total
16,956
12,386
This item relates to transactions in which Rabobank stands
surety for obligations of third parties.
In millions of euros 2016 2015
Contingent liabilities consist of:
Guarantees 19,415 14,126
Letters of credit 6,196 4,744
Other 747 100
Total contingent liabilities 26,358 18,970
Of which:
Contingent liabilities of group companies 8,194 6,710
Liability undertakings
Pursuant to Section 403 of Book 2 of the Dutch Civil Code,
Rabobank has assumed liability for the debts arising from the
legal transactions of the following Group companies:
Bodemgoed B.V.
De Lage Landen America Holdings B.V.
De Lage Landen Corporate Finance B.V.
De Lage Landen Facilities B.V.
291
Other notes to the financial statements