Ambitions and outlook for 2006
36 Rabobank Group Annual Report 2005
Core activities: wholesale banking and international retail banking
Value adjustments increased last year from EUR 119 million to EUR 259
million. Risk-related costs amounted to 56 (30) basis points of the risk-
weighted assets. Risk-related costs were low in 2004 from a historical
perspective, but were slightly above the long-term average in 2005, due
to the formation of several new provisions for non-domestic operations.
Despite increased competition, Global Financial Markets expects to be
able to achieve healthy continued growth in 2006. As a result of the
change in focus of Structured Finance, the growth of Corporate Finance
should level off in 2006.
Rabobank will be opening a number of new branch offices in Australia
and New Zealand in 2006. In the United States, the operations of
Community Bank of Central California will be integrated in the existing
retail operations in California.
In Poland, BGZ will grow strongly in the markets for both private
individuals and small and medium-sized businesses. No substantial
contribution from BGZ to Rabobank Group's results is expected as yet
for the short term.
For more information
www.rabobank.com and www.rabosecurities.nl
Income by region in 2005
Europe
America
Australia and
New Zealand
Results (in EUR millions)
2005
2004
change
Interest
1,415
1,374
3%
Fees and commission
511
342
49%
Other income
301
545
-45%
Total income
2,226
2,261
-2%
Staff costs
760
749
1%
Other operating expenses
517
608
-15%
Total expenses
1,277
1,357
-6%
Gross profit
950
904
5%
Value adjustments
259
119
118%
Operating profit before taxation
690
785
-12%
Net profit
573
555
3%
Risk-related costs (in basis points)
56
30
81%
Balance sheet (in EUR billions)
31-Dec-05
31-Dec-04
Total assets
368.4
334.0
10%
Private sector lending
54.2
45.0
20%
Total risk-weighted items
53.1
40.0
33%
FTEs
5,960
5,499
8%
