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.
