Rabobank Group's consolidated total assets
grew by 5% in 2005 to EUR 506 billion.
Lending increased by 11% and savings by 10%.
Loans to customers
Lending by sector
73 Rabobank Group Annual Report 2005
Notes to the
balance sheet
where in Europe, 8% in America, 4% in Australia and New Zealand and
1% in the rest of the world. Loans to private individuals made up 53% of
private sector lending, 30% was in the trade, industry and services
sector and 17% in the food agri sector.
Loans to customers increased by 11% in 2005 to EUR 304 (274) billion.
This total comprises:
- Lending and security transactions to government clients;
- Securities transactions due from private sector lending;
- Credit adjustments due to hedge accounting;
- Private sector lending.
At the end of 2005, lending to government clients amounted to EUR 2.5
(4.2) billion and the outstanding amount of securities transactions was
EUR 22.0 (18.6) billion. The Rabobank Group uses derivatives to hedge
its interest rate risk for loans to clients. These derivatives are valued at
fair value and loans to clients are valued on an amortised cost basis.
The Rabobank Group applies hedge accounting to prevent value changes
from being reflected directly in the profit and loss account. For 2005,
this resulted in a EUR 1.8 (2.2) billion revaluation of loans to customers.
The majority of loans concerns private sector lending. This item, which
represents 55% of total assets, increased by 12% to EUR 278.1 (249.0)
billion, mainly as a result of the strong growth in mortgage loans.
The greater part of lending (79%) was in the Netherlands, with 9% else-
- Private individuals
Total loans to private individuals increased by 10% to EUR 146.5 (133.2)
billion in the year under review, with the greater part, 97%, granted in
the Netherlands. Abroad, lending to private individuals grew by more
than 10%, which was due in particular to strong growth in Ireland.
- Trade, industry and services
During the year under review, lending to corporate clients in trade,
industry and services was 9% higher than a year ago. As a result, total
lending to these clients amounted to EUR 83.3 (76.3) billion, with the
strongest growth in the industry and financial services sectors.
- Food agri
Lending to the food agri sector covers the complete chain of the
primary agricultural sector, up to and including food retail. Lending in
this sector grew by 22% to EUR 48.2 (39.5) billion. The food agri
activities abroad showed a particularly strong growth of no less than
43%. The strong growth in lending to the primary agricultural sector
included loans to vegetable and fruit growers.
Lending by Group entity at year-end 2005
Domestic retail banking
Wholesale banking and
international retail banking
Leasing
Real estate
