Commission on services Securities brokerage Asset management fees Results on financial transactions Other revenue Expenses Staff costs Other administrative expenses and depreciation Operating result 2001 2002 Retail banking business Wholesale banking business Asset management Notes to the profit and loss account 53 Interpolis achieved a 9% increase in commission on services (pensions and occupational health and safety), to EUR 242 million. Commission on occupational health and safety services particularly showed a significant increase. As a result of the depressed stock exchanges, income from securities brokerage fell by 7% to EUR 269 (291) million. Securities brokerage is realised mainly by the local Rabobanks.The fall in stock prices scared off many clients, which caused the number of orders for securities, options and branded investment funds to decline by 6%, to 2.9 million, from the poor year 2001.The increase in the use of the Internet to place investment orders also contributed to the decrease of securities brokerage. Asset management fees consist for the greater part of management fees received from the investment funds. Asset management fees in 2002 were EUR 386 million, down 4% on 2001. Results on financial transactions fell by 32% in 2002 to EUR 285 (422) million. Results on financial transactions are realised mainly by the wholesale banking business. Other revenue was EUR 564 (653) million, down 14%. Other revenue includes underwriting results on Interpolis insurance contracts. Operating expenses fell slightly, by 2% to EUR 5,839 (5,965) million. At 63%, staff costs make up the bulk of expenses. Staff costs rose by 3% in 2002 to EUR 3,682 (3,565) million, mainly due to salary increases. Hiring costs for temporary and external staff were lower. The Rabobank Group's staff numbers decreased by 306 FTEs to 51,867 FTEs.The number of jobs decreased especially in the local Rabobanks, where the number of FTEs fell by 1,643. In other activities, the number of FTEs increased as a result of acquisitions and the replacement of external staff. Other administrative expenses declined by 12% to EUR 1,789 (2,032) million. Depreciation of buildings and fixtures and fittings was unchanged at EUR 368 million. Rabobank Group's operating result for 2002 was EUR 2,725 (2,469) million, up 10% on 2001. Operating result by Group unit (in EUR millions) 1,500 3% 1,200 900 2% 600 300 11% 10% 0/ 0 ■°/u -62% -300 Retail Wholesale Asset Insurance Leasing Other banking banking management Rabobank Group's operating result is achieved by six activities. These are: retail banking, wholesale banking, asset management, insurance, leasing and other. In 2002, gross profit from retail banking increased by EUR 44 million to EUR 1,387 million, up 3%.Total income was up 6% and operating expenses were up 7% on 2001.The increase in income is largely due to growth in both lending and savings. The number of securi ties orders fell, and so, consequently, did securities brokerage. Partly as a result of efficiency programmes, the increase in expenses was relatively limited. Staff numbers fell by 1,643 FTEs in 2002. The wholesale banking business (Rabobank International, Rabobank Nederland Corporate Clients and Group Treasury) achieved a slight improvement of EUR 15 million, to EUR 900 million. Due to cost measures, charges fell by 7% to EUR 915 million. Income declined by 3% to EUR 1,815 million. Compared with 2001, Rabobank International's income from venture capital in particular was lower. Partly as a result of the low interest volatility, Group Treasury was unable to improve on the excellent result achieved in 2001. Gross income of Rabobank Nederland Corporate Clients was considerably higher than in the previous year. Results from asset management activities were under severe pressure from the unfavourable stock exchange climate in 2002.

Rabobank Bronnenarchief

Annual Reports Rabobank | 2002 | | pagina 55