I
Lending by Group entity
Other financial assets
Due to customers
Savings
74 Rabobank Group Annual Report 2005
Notes to the balance sheet
Of the total private sector lending of EUR 278.1 billion, EUR 200.7 (183.6)
billion was granted by the domestic retail banking operations. Their share
of total lending was 73%. Wholesale banking and international retail
banking operations granted loans representing 19% of total lending.
Leasing and real estate represented 5% and 2%, respectively.
Other financial assets comprise shares, bonds, money market paper,
short-term government paper and other forms of securities.
Other financial assets are subdivided into the following categories:
- Trading financial assets;
- Available-for-sale financial assets;
- Other financial assets at fair value through profit and loss;
- Held-to-maturity financial assets.
At year-end 2005, other financial assets amounted to EUR 107 (116)
billion, or 21% of total assets. Around 36% of these financial assets, or
EUR 39 billion, is held for trading. Value differences in this item are taken
directly to the profit and loss account. The greater part of the financial
assets, EUR 51 billion, is in the 'available for sale' category. This item plays
an important part in providing for the liquidity needs and is not designed
to generate short-term profits. The difference between carrying value
and fair value is taken to the revaluation reserve. However, the value
differences of part of those financial assets that are valued at fair value,
EUR 15 billion, are taken to the profit and loss account. This concerns
primarily securities linked directly to liabilities where any valuation
fluctuations are likewise taken to the profit and loss account. A small
part of the financial assets, EUR 2 billion, is held-to-maturity and is
valued at amortised cost.
Due to customers grew by 5% to EUR 186.4 (177.5) billion in the year
under review. Due to customers comprise savings, repurchase
contracts and other due to customers. The repurchase contracts
amounted to EUR 5.4 (3.9) billion and the other due to customers to
EUR 94.8 (95.3) billion.
Savings grew by 7.9 billion in 2005 to EUR 86.2 (78.3) billion, a rise of
10%. Most of the increase was realised in Internet savings, which grew
by EUR 7 billion. As a result, the share of Internet savings in total savings
rose from 43% to 46%. This was at the expense of the traditional savings
accounts and telesavings. The relative share of fixed-term deposits
increased from 7% to 10%. This came as some surprise, since holders of
salary savings accounts in the Netherlands were granted free access to a
large part of their salary savings. Against expectations, however, a large
number of account holders did not avail themselves of this opportunity
for tax reasons.
Other financial assets at year-end 2005
Breakdown of Rabobank Group savings at year-end 2005
Available-for-sale
Held-for-trading
Carried at fair value through
profit and loss
Held-to-maturity
BJ
Internet savings
46%
Savings accounts
18%
Telesavings
12%
Fixed-term deposits
10%
Roparco
6%
Other
8%
