Ambitions and outlook for 2005
37 Rabobank Group Annual Report 2004
Core activities
Owing to the global economic recovery and a release of provisions, the
item value adjustments to receivables decreased by EUR 146 million to
EUR 138 million. In relation to average risk-weighted assets, risk-related
costs were 35 (76) basis points.
IFRS
Total assets will increase slightly following the transition to IFRS,
reflecting the fact that all derivatives positions in the balance sheet, and
not just the positions in the trading portfolio, will be carried at market
value. This is expected to lead to greater volatility of results. Compared
with Dutch GAAP, certain items of the profit and loss account will
change substantially. Under IFRS, some of Gilde's participating interests
must be consolidated, which will lead to higher non-banking income
and expenses. In addition, a number of constructions will be treated
differently in the profit and loss account, as a result of which income
and third-party interests will be lower on balance compared with Dutch
GAAP. As this mainly concerns reclassifications in the profit and loss
account, the effect on net profit will be relatively limited.
In 2005, work will continue on expanding the global food agri
franchise. The envisaged extension of the international retail position
is also instrumental for this purpose. In this context, Rabobank Group
aims at strengthening its position in the USA and in Central and Eastern
Europe. In addition, it intends acquiring a majority interest in the Turkish
Sekerbank in 2005. Efforts aimed at strengthening the position in the
Dutch corporate market will be vigorously pursued. The outlook for the
international wholesale and retail operations is favourable. The bank
aims at achieving growth in results of at least 10%.
www.rabobank.com
Results (in EUR millions)
2004
2003
change
Interest
1,115
1,120
0%
Commission
376
315
19%
Other income
671
519
29%
Total income
2,162
1,954
11%
Staff costs
675
598
13%
Other operating expenses
445
369
21%
Total expenses
1,120
967
16%
Gross profit
1,042
987
6%
Value adjustments to receivables
138
284
-51%
Value adjustments to financial fixed assets
(4)
54
-107%
Operating profit before taxation
908
649
40%
Balance sheet (in EUR billions)
Total assets
329.1
257.6
28%
Volume of lending
46.8
47.3
-1%
Total risk-weighted items
42.3
38.8
9%
Risk-related costs (in basis points)
35
76
-54%
FTEs
5,499
5,252
5%
