Increase at local Rabobanks results in growth in lending Loan portfolio by sector in billions of euros Food and agri TIS Private individuals 450 400 Loan portfolio by group entity year-end 2009 Domestic retail banking 67% Wholesale banking and international retail banking 23% Leasing 5% Real estate 4% Other 1% 2005 2006 2007 2008 2009 Growth in lending was primarily achieved in the first half of the year. Demand for loans was down due to the economic crisis, causing lending to level off. Although the local Rabobanks and Obvion still managed to increase their loan portfolios, the growth rate was lower than in 2008. Rabobank International saw a decrease in lending, particularly in the second half of 2009. The 'loans to customers' item was up 2% at group level, rising to EUR 433.9 (426.3) billion. Of this item, 96% accounts for private sector lending, which saw a 2% increase to EUR 415.7 (408.6) billion thanks in particular to a rise in mortgage loans in the Netherlands. The item loans to customers further comprises lending to government clients, securities transactions due from private sector lending and interest rate hedges. Lending to government clients amounted to EUR 3.9 (8.8) billion. The volume of the item 'securities transactions due from private sector lending' grew to EUR 8.4 (3.8) billion as a result of an increase at Rabobank International. Rabobank Group uses derivatives to hedge the interest rate risk on lending. A temporary asymmetry in valuation occurs because these derivatives are valued at market value, whereas the private sector loan portfolio is valued on the basis of amortised cost. Rabobank Group applies hedge accounting to prevent this difference from causing unnecessary fluctuations in the statement of income. The valuation differences are recognised under the item 'interest rate hedges'.This item had a volume of EUR 5.8 (5.0) billion. Of the private sector loan portfolio, 48% is made up of loans to private individuals, 35% of loans to the trade, industry and services (TIS) sector, and 17% of loans to the food and agri sector.Thanks to the growth in mortgage lending in the Netherlands, loans to private individuals Loan portfolio TIS by industry at year-end 2009 Lessors of real estate 18% Finance and insurance (except banks) 18% Wholesale 10% Manufactoring 6% Construction 6% Transport and warehousing 5% Activities related to real estate 5% Health care and social assistance 4% Retail (except food and beverages) 3% Professional, scientific and technical services 3% Information and communication 2% Arts, entertainment and recreation 1 Utilities 1% Other 18% Loan portfolio food and agri by industry at year-end 2009 Animal protein 19% Dairy 17% Grain and oil seeds 16% Fruit and vegetables 12% Food retail and food service 7% Farm inputs 6% Flowers 5% Beverages 4% Miscellaneous crop farming 3% Sugar 2% Other food and agri 9% increased by 3%, reaching EUR 200.6 (194.0) billion.This portfolio is virtually entirely comprised of mortgage loans, the remainder being consumer loans. The TIS portfolio was down 2% at group level, dropping to EUR 143.6 (146.3) billion due to a contraction in this portfolio at Rabobank International. Loans to the food and agri sector increased by 5% to EUR 71.4 (68.3) billion, EUR 49.7 (43.8) billion of which was issued to the primary agricultural sector. The grain sector was a growth market in this portfolio. 12 Report 2009 Rabobank Group

Rabobank Bronnenarchief

Annual Reports Rabobank | 2009 | | pagina 13