Investment Management division
Social real estate
Financial results
Income up 63%
Operating expenses up 146%
Loan portfolio, at year-end 2006
in EUR billions
2004
2005
2006
Number of houses sold by country
in 2006
^^Fhe Netherlands 10,794
France 2,510
Germany 542
Other 227
Strong development in lending
The loan portfolio grew by 31% in 2006 to
EUR 10.3 (7.8) billion. The portfolio contributed
by Rijnlandse Bank had a volume of EUR 0.8
billion. New production at FGH Bank amounted
to EUR 4.1 billion, partly as a result from the
good collaboration with the local Rabobanks
and Rabobank International. The repayments
amounted to EUR 1.8 billion. The greater part
of the portfolio relates to investment financing.
Bouwfonds Asset Management and FGH Asset
Management operate in real estate investments
and focus their activities on building, structuring
and managing real estate portfolios. This involves
unlisted funds for private and institutional
investors both at home and abroad.
High interest in real estate funds
Private investors increasingly focused on real
estate in 2006. This was reflected by the
successful launch of Bouwfonds Germany
Residential Fund III CV. Earlier in the year,
Bouwfonds had placed Bouwfonds Germany
Residential Fund CV and Bouwfonds Germany
Residential Fund II CV with investors. The
Leyenburg Woningfonds CV likewise attracted
a great deal of interest. The Bouwfonds US
Residential Fund was set up for international
institutional investors. The volume of assets
managed at 31 December 2006 was EUR 4.2
billion, the greater part of which was from
Bouwfonds.
Bouwfonds Fondsenbeheer manages four
public/private funds in the areas of nature
development, listed buildings, urban renovation
and industrial heritage in the Netherlands. During
2006, these four funds grew from EUR 1.7 billion
to EUR 2.0 billion.
Total income was EUR 94 million higher at
EUR 244 (150) million. The growth of the loan
portfolio caused interest income to rise by
2% to EUR 98 (96) million, despite pressure on
margins. Commission income was unchanged
at EUR 1 (1) million. In December 2006, the
parts acquired from Bouwfonds contributed
to the EUR 92 million increase in other income
to EUR 145 (53) million.
Total operating expenses rose by EUR 60 million
to EUR 101 (41) million. In 2006, the staffing
level grew by approximately 1,250 FTEs as a
result of the acquisition of parts of Bouwfonds.
Organic growth of activities required additional
staff. Total employee numbers increased by
1,323 FTEs to 1,654 (331) FTEs, causing staff
costs to rise by EUR 30 million to EUR 55 (25)
million. Due to organic growth and the
acquisition, other administrative expenses were
EUR 28 million higher at EUR 43 (15) million.
Depreciation charges rose to EUR 3 (1) million.
60 Rabobank Group Annual Report 2006
