Financial results of wholesale banking and
international retail banking
Direct banking: sharp increase in savings deposits
Results (in millions of euros)
The international retail banking divisions of Bank BGZ and the retail banks in California, among
others, issued more loans. Lending increased by 16% to EUR 33.9 (29.3) billion. Retail lending
in Australia and New Zealand was up 27% to EUR 13.8 (10.9) billion.This increase was virtually
entirely attributable to the appreciation in value of the Australian and New Zealand dollars.
The volume of retail loans in the US increased by 24% to EUR 10.3 (8.3) billion. Currency effects
accounted for about a quarter of this increase. Retail lending at Bank BGZ was up 12%, rising
to EUR 5.0 (4.5) billion. At ACCBank in Ireland, the retail portfolio stood at EUR 4.2 (5.1billion.
Savings deposits raised by the direct banking activities in Belgium, Ireland, New Zealand and
Australia were used in part to cover loans issued by the international retail banking division.
Rabobank International launched its direct banking activities in Belgium in 2002. In the years
that followed it opened online banks in Ireland, New Zealand and Australia.Total savings
deposits at the foreign online banks increased by 60% in 2010 to EUR 11.6 (7.3) billion.
This inflow was realised mainly in Australia and New Zealand, where many customers opened
a new account. The appreciation of the Australian and New Zealand dollars was also a factor in
the rise. The total number of direct banking customers was up 11% in 2010, rising to 362,000.
2010
2009
Change
Interest
2,813
2,955
-5%
Commission
460
488
-6%
Other results
306
-63
Total income
3,579
3,380
6%
Staff costs
1,020
998
2%
Other administrative expenses
811
691
17%
Depreciation and amortisation
108
94
15%
Operating expenses
1,939
1,783
9%
Gross result
1,640
1,597
3%
Value adjustments
597
940
-36%
Operating profit before taxation
1,043
657
59%
Taxation
269
91
Net profit
774
566
37%
Bad debt costs (in basis points)
64
105
-39%
Ratios
Efficiency ratio
54.2%
52.8%
RAROC
10.1%
8.8%
Balance sheet (in billions of euros)
31-Dec-10
31-Dec-09
Total assets
440.1
406.9
8%
Private sector loan portfolio
99.1
93.4
6%
Capital requirements (in billions of euros)
Capital requirement
6.5
7.3
-11%
Economic capital
7.4
7.6
-3%
Number of employees (in FTEs)
15,197
14,534
5%
39
Wholesale banking and international retail banking