Financial results of domestic retail banking
Alleviating the administrative burden for businesses
Rabobank teamed up with ABN AMRO and ING to initiate the establishment of a cooperative
for the implementation and development of an approach to Standard Business Reporting
(SBR). SBR facilitates standardised and electronic exchange of reports, such as annual figures
and loan applications between the business owner, the accountant, the tax authorities and
the bank. This alleviates the administrative burden and eliminates the paper trail. The initiative
is offered to businesses via www.rapportageportaal.nl.
Growth in lending levelling off at local Rabobanks
The economic crisis caused growth in lending to decline at domestic retail banking, especially
in the second half of the year. In spite of this, the private sector loan portfolio increased in
2009 by 4% to EUR 278.0 (268.3) billion. Of the loan port
folio, 68% accounts for private individuals, 21% for trade,
industry and services (TIS), and 11 for food and agri.
Loans to private individuals, which are comprised almost
entirely of mortgage loans, rose by 3% to EUR 190.0
(184.5) billion. Growth in the mortgage portfolio was
considerably lower than in 2008 due to stagnation of the
number of transactions on the residential property
market. Loans to trade, industry and services rose by 6%
to EUR 58.8 (55.7) billion. Loans to the food and agri
sector were up 4% to EUR 29.2 (28.1billion, the vast majority of which were granted to the
primary agricultural sector.This loan portfolio increased by 5% to EUR 24.6 (23.5) billion, which
was attributable mostly to the dairy sector.
Increase in amounts due to customers thanks to higher savings deposits at
local Rabobanks
Domestic retail banking saw its amounts due to customers increase by 5%, rising to EUR 185.2
(175.6) billion in 2009. Savings deposits, the largest category of amounts due to customers,
was up 7% to EUR 108.9 (101.5) billion. Interest rates on time deposits, which are linked to
changes in short-term interest rates more so than the rates on variable savings deposits,
dropped sharply. This resulted in a massive shift from retail time deposits to variable savings.
Customers with more than EUR 20,000 in savings often opted for Rabobank InternetLoyaal-
Sparen (online loyal savings).The increase in amounts due to customers allowed the local
Rabobanks to entirely self-fund the growth in their lending in 2009.
Income virtually stable
The domestic retail banking division posted a total income in 2009 of EUR 6,126 (6,154) million.
Fierce competition on the savings market led to a decline in the savings margin at the local
Rabobanks. Margins on new mortgages and business loans recovered. Interest income fell by
8% to EUR 4,360 (4,758) million on balance. The drop in commissions on treasury services and
lower growth in lending were factors in the 7% decrease in commissions to EUR 1,261 (1,354)
million. Other income rose by EUR 463 million to EUR 505 (42) million thanks to the repurchase
of debt securities and dividend income received from Rabobank Nederland.
Operating expenses down 4%
Total operating expenses in domestic retail banking were down 4% to EUR 3,898 (4,044) million
in 2009; expenses fell in the second half of the year in particular. Fewer employees were needed,
both at the local Rabobanks and Obvion, for which reason the employee base was reduced by
1% to 28,529 (28,953) FTEs. Thanks, in part, to this drop, the lower number of contract staff
and the fall in pension costs, staff costs saw a 3% decrease to EUR 2,196 (2,264) million.
Other administrative expenses were down 4% to EUR 1,569 (1,639) million, which was due,
in part, to lower advertising and office expenses. Depreciation charges fell by 6% to EUR 133
(141) million, partly because of lower depreciation charges on real estate and equipment.
22
Report 2009 Rabobank Group
Loan portfolio by sector
in billions of euros
Food and agri
TIS
Private individuals
2005 2006 2007 2008 2009
