Insurance business
Leasing
Value adjustments to financial fixed assets
Net profit
Net profit
Profit appropriation
Other units
Value adjustments to receivables
54 Rabobank Group Annual Report 2002
Nevertheless, gross profit rose by 10% to EUR 127 (116) million as a
result of acquisitions and cost savings. Commission income fell by
EUR 89 million to EUR 423 (512) million.This decrease is the result of
lower transaction commission and lower management fees due to
a decline in assets managed. Partly as a result of cost measures,
expenses fell by 18% to EUR 459 million.
Interpolis had a disappointing year. The tax regime changes caused
a significant decrease in results from life insurance. Income was also
depressed by the negative return on the investment portfolio and
the storm damage caused in October. The development of income
from occupational health and safety activities constituted a positive
exception. Gross profit for Interpolis fell by EUR 124 million in 2002
to EUR 77 (201) million, which is a 62% decline.
The result from lease activities rose by 11% to EUR 238 (215) million.
The activities in leasing and trade finance in the Netherlands contri
buted to this increase, as did the international activities in vendor
finance.
Value adjustments to financial fixed assets were EUR 252 (59) million
in 2002.This increase is mainly due to write-downs of participating
interests and unrealised price losses on the Interpolis securities
portfolio.
After taxes of EUR 514 (532) million and third-party interests of
EUR 209 (192) million net profit amounted to EUR 1,250 (1,206)
million,a rise of 4% on 2001.Given the difficult market, this is an
acceptable result.
The net profit, after dividend distributions to holders of Membership
Certificates and Trust Preferred Securities, has been added to reserves
to strengthen the financial basis for further development of
Rabobank Group and to realise customer value in the future.
The losses from the units included in Other rose improved from
EUR (287) million in 2001 to EUR (5) million in 2002.This includes
the gain on the sale of the International Private Banking activities.
This item is used to account for loan losses. Value adjustments to
receivables are determined by Rabobank Group by way of a general
provision based on a long-term weighted average of the actual
losses expressed as a percentage of outstanding loans, with the
most recent years carrying the most weight. In 2002, the item Value
adjustments to receivables increased by EUR 20 million to EUR 500
million.This increase is mainly due to the economic downturn and,
to a limited degree, increased lending.
