Financial results of domestic retail banking
Results (in millions of euros)
portfolio, 69% was made up of loans to private individuals, 21% of loans to the trade, industry
and services (TIS) sector, and 10% of loans to the food and agri sector. Loans to private
individuals, which are comprised almost entirely of mortgage loans, rose by 4% to EUR 196.8
(190.0) billion. Loans to the TIS sector were up 4% to EUR 61.1 (58.8) billion. Loans to the food
and agri sector were stable in 2010, landing at EUR 29.1 (29.2) billion. The share of the meat
sector in this portfolio increased, with that of the fruit and vegetables sector contracting.
Increase in amounts due to customers
Domestic retail banking saw its amounts due to customers increase by 4%, rising to EUR 192.8
(185.2) billion in 2010. Corporate deposits accounted for most of the increase. Amounts due to
customers are made up chiefly of savings deposits from private individuals. This category
increased by 3% to EUR 112.6 (108.9) billion. Within savings deposits, there was a shift from
time deposits and fixed-interest savings to variable-interest savings. Domestic retail banking
was able to fund nearly all of the increase in lending using client deposits.
2010
2009
Change
Interest
4,894
4,360
12%
Commission
1,321
1,261
5%
Other results
294
505
-42%
Total income
6,509
6,126
6%
Staff costs
2,161
2,196
-2%
Other administrative expenses
1,553
1,569
-1%
Depreciation and amortisation
119
133
-11%
Operating expenses
3,833
3,898
-2%
Gross result
2,676
2,228
20%
Value adjustments
358
721
-50%
Operating profit before taxation
2,318
1,507
54%
Taxation
475
294
62%
Net profit
1,843
1,213
52%
Bad debt costs (in basis points)
13
26
-50%
Ratios
Efficiency ratio
58.9%
63.6%
RAROC
23.8%
15.2%
Balance sheet (in billions of euros)
31-Dec-10
31-Dec-09
Total assets
360.9
328.9
10%
Private sector loan portfolio
286.9
278.0
3%
Amounts due to customers
192.8
185.2
4%
Capital requirements (in billions of euros)
Capital requirement
6.7
6.7
Economic capital
8.1
7.6
7%
N umber of employees (jn FTEs) 27,322 28,529 -4%
Income up 6%
Domestic retail banking saw its total income increase by 6%, rising to EUR 6,509 (6,126) million
in 2010. Interest income was up 12% to EUR 4,894 (4,360) million as a result of recovered
margins, particularly on savings deposits. Thanks, in part, to the issue of new products,
commission showed a limited 5% rise to EUR 1,321 (1,261) million. Insurance commissions at
the local Rabobanks amounted to EUR 329 (353) million. Commissions from non-life insurance
31
Domestic retail banking