-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
5.2 Regulatory Capital
Inhoudsopgave Voorwoord Bestuursverslag Corporate governance
Table 1Reconciliation of qualifying capital with IFRS capital.
Qualifying
capital
IFRS capital
Retained earnings
25,709
25,709
Expected dividends
(60)
Rabobank certificates
5,948
5,948
Non-controlling interests
25
525
Reserves
112
112
Regulatory adjustments
(3,302)
Transitional adjustments
1,186
Common Equity Tier 1 capital
29,618
Trust preferred securities lll-IV
409
Capital Securities
7,821
CRD IV compliant Capital Securities
2,728
Grandfathered instruments
5,462
Non-controlling interests
5
Regulatory adjustments
(91)
Transitional adjustments
(643)
Tier 1-capital
37,079
Subordinated debt
16,094
Non-controlling interests
7
Regulatory adjustments
(99)
Transitional adjustments
(208)
Total IFRS equity/qualifying capital
52,873
40,524
The subordinated debt increased mainly due to the issuance of
a subordinated debt (USD 1.5 billion). A detailed breakdown of
CET1.T1 andT2, and additional information about the CET1-,T1
andT2 capital instruments can be found in Annex 14.1.
Consolidated Financial Statements Company Financial Statements Pillar 3
Table 2: Overview of changes in qualifying capital.
Overview of changes in qualifying capital
Qualifying capital at 1 January 2016 CRD IV
49,455
Opening common equity Tier 1 capital at 1 January 2016
28,754
Retained earnings
227
Expected dividend
66
Rabobank Certificates
(1)
Non-controlling interests
3
Reserves
(112)
Regulatory adjustments
2,237
Transitional adjustments
(1,556)
Closing common equity Tier 1 capital at 31 December 2016
29,618
Opening additional Tier 1 capital at 1 January 2016
6,298
Capital Securities and grandfathered instruments
329
Regulatory transitional adjustments
834
Closing additional Tier 1 capital at 31 December 2016
7,461
Opening tier 2 capital at 1 January 2016
14,403
Subordinated debt
1,016
Regulatory transitional adjustments
375
Closing tier 2 capital at 31 December 2016
15,794
Qualifying capital at 31 December 2016
52,873
A general overview of the main features of the common equity
Tier 1 and additional Tier 1 instruments and Tier 2 instruments is
available in appendix 14.2. For the full terms and conditions of
the capital instruments, we refer to the prospecti.
edtf 12 Rabobank is using the most advanced calculation
methods for calculating the Regulatory Capital (RC)
requirements under Basel II and CRR (CRD IV) for credit, market
and operational risks. The policy of Rabobank is aimed at
applying the IRB approach for its credit portfolio as much
as possible.
Table 3 presents an overview of the Regulatory Capital
requirements and the Risk Weighted Exposure Amounts (RWEA)
at 31 December 2016 for the different risk types. The largest part
of the capital requirement relates to credit risk (84%). Market risk
accounts for 3% of the capital requirements and operational risk
comprises 13% of the Regulatory Capital requirements.
321 5. Capital management