AmbitiQns and QutlQQk
Results (in millions of euros)
Ris.k-welab.tedLa.s.s.e.t.s.
Net profit up 24%, RAROC 15.1%
2007
2006
Change
Interest
4,391
4,226
4%
Fees and commission
1,379
1,259
10%
Other income
25
66
-62%
Total income
5,795
5,551
4%
Staff costs
2,072
2,118
-2%
Other administrative expenses
1,618
1,607
1%
Depreciation and amortisation
145
152
-5%
Operating expenses
3,877
-1%
Gross result
1,960
1,674
17%
Value adjustments
145
139
4%
Operating profit before taxation
1,815
1,535
18%
Taxation
466
444
5%
Net profit
1,349
1,091
24%
Value adjustments (in basis points)
6
7
Ratios
Efficiency ratio
66.2%
69.8%
RAROC
15.1%
Balance sheet (in billions of euros)
31-Dec-07
31-Dec-06
Total assets
277.7
242.4
15%
Private sector lending
244.1
220.9
11%
Savings 89.6 80.5 11%
152.4
143.2
6%
Economic capital
8.9
Number of employees (in fte)
29,304
29,375
0%
tQ 6 (7) basis pQints Qf average lending and is far iQwei than the five-year average Qf 12 basis
pQints. DepieciatiQn charges were 5% iQwei, at EUR 145 (152) milliQn, mainly due tQ iQwer
real estate and equipment depreciation.
Grass profit increased by 17% in 2007, as a result Qf higher incQme in cQmbinatiQn with
tower operating expenses. The increase in grass profit especially caused net profit tQ grow by
24% tQ EUR 1,349 (1,091) milliQn.
In 2007, dQmestic retail banking achieved a Risk Adjusted Return On Capital (RAROC) Qf
15.1%. At year-end, ecQnQmic capital required amounted tQ EUR 8.9 billton.
Maintaining high customer satisfactton and customer lQyalty is pre-eminent tQ RabQbank
and the RabQbank shall cQntinue tQ invest in new forms Qf distribution in QLdeL tQ maintain
qui high level Qf client service. Besides new distribution channels, improvement measures
will be taken under the Rabobank 2010 project, ensuring ongoing optimum service to
Rabobank clients in the future. In addition, Rabobank will make extra investments in urban
areas in order to raise its market share there.
The local Rabobanks intend to maintain their position in the mortgages market and
Obvion intends to strengthen its position in the broker market further. The local Rabobanks,
together with De Lage Landen, expect to be able to strengthen their position in the
