Financial results
Results (in millions of euros)
Furthermore, an internal capital requirement is established for a broader range of risks. Besides credit
risk, operational risk and market risk in the trading books, Rabobank Group also holds economic capital
for all other identified, material risks. Mainly as a result of the growth in lending, economic capital
increased to EUR 22.3 (20.5) billion at year-end 2008. This internal capital requirement is far lower than
the available qualifying capital of EUR 30.9 (29.2) billion. This sizeable buffer underlines Rabobank
Group's financial solidity.
At 57% of total economic capital, credit and transfer risk is the most dominant risk type. Interest rate
and market risk account for 16%, and the non-financial risks (operational and business risks) for 17%.
The remaining 10% are distributed over the other risk types.
2008
2007
Change
Interest
Fees and commission
Other income
IotaI income
Staff costs
Other administrative expenses
8,517
2,889
246.
11,652
4,290
2,796
6,771
2,857
1,394
11,022
4,400
2,779
484
26%
1%
82%
-3%
1%
Operating expenses
7,611
7,663
1%
Gross result
4,041
3,359
20%
Value adjustments
1,189
2.66
Operating profit before taxation
2,852
3,093
-8%
Taxation
98
397.
-75%
Net profit
2.754
2.696
2%
Impairment losses (in basis points)
31
8
Ratios
Efficiency ratio
65.3%
69.5%.
Return on equity
9.7%
10,2%.
RAROC
12.5%
14,4%
Balance sheet (in billions of euros)
31-Dec-08
31-Dec-07
Total assets
612.1
570.5
7%
Private sector loan portfolio
408.6.
368.7
11%
Due to customers
304.2
276.6
10%
Capital requirements (in billions of euros)
Capital requirement
19.0
21.3
-11%
Economic capital
22.3
20.5
9%
Capital ratios
BIS ratio
13.0%
10,9%
Tier I ratio
12.7%
10.7%
Number of employees (in FTEs)
60,568.
54,7.37
1.1%
Income up 6%
In the year under review, total income increased by 6% to EUR 11,652 (11,022) million, with the rise in
income for the local Rabobanks and the asset management activities as contributors. Mainly due to
Rabobank International's higher interest income, this result increased by 26% to EUR 8,517 (6,771) million.
Rabobank International's interest income was higher as a result of growth in lending and higher margins.
26
Rabobank Group Annual Report 2008
