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