1
1
1
Other administrative expenses
Operating profit
Value adjustments to receivables
Value adjustments to financial fixed assets
16 Rabobank Group Annual Report 2003
Other administrative expenses increased by 17%, or EUR 312 million, to
EUR 2,101 (1,789) million, mainly owing to non-recurring items,such as
the release of provisions for an amount of more than EUR 60 million in
2002. At the time, this depressed the level of other administrative
expenses, whereas in 2003 the level of expenses increased as a result of
additions of EUR 87 million to provisions, partly in connection with
restructuring. In addition,acquisitions pushed up the amount of other
administrative expenses.
Rabobank Group's operating profit for 2003 was EUR 2,995 (2,725)
million, up 10%. Rabobank Group's operating profit is achieved by six
activities: retail banking, wholesale banking, asset management,
insurance, leasing and other.
This item is used to account for loan losses. Rabobank Group determines
value adjustments to receivables 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 being
given the highest weightings. In 2003, value adjustments to receivables
increased by EUR 75 million to EUR 575 million.This increase is mainly
due to the economic conditions and increased lending.
Value adjustments to financial fixed assets concern write-downs of
participating interests and unrealised price gains and losses on the
Interpolis securities portfolio. In 2003, this item amounted to EUR 18
(252) million.The EUR 234 million decrease is attributable to the effect
of unrealised price gains and losses on the Interpolis securities portfolio.
In 2002 significant price losses were incurred.
Commission
in EUR m
illions
2,000
1,750
1,500
1,250
Insurance
1,000
Services
750
Securities
500
Asset management
250
Funds transfers and foreign exchange
0
Other
1999 2000 2001 2002 2003
Rabobank introduces
a new investment concept:
Rabo FondsEffect.
