Financial results of asset management
Outlook for asset management
Results (in millions of euros)
Income up 23%
2010
2009
Change
Interest
166
104
60%
Commission
995
757
31%
Other results
47
123
-61%
Total income
1,208
984
23%
Staff costs
564
553
2%
Other administrative expenses
287
288
0%
Depreciation and amortisation
117
109
7%
Operating expenses
968
950
2%
Gross result
240
34
Value adjustments
2
4
-25%
Operating profit before taxation
238
30
Taxation
71
17
Net profit
167
13
Assets (in billions of euros)
31-Dec-10
31-Dec-09
Assets under management and held in custody for clients
270.4
230.4
17%
Number of employees (in FTEs)
3,160
3,191
-1%
On the back of higher commissions and higher interest income, total income from asset
management was 23% higher in 2010, at EUR 1,208 (984) million. Asset management fees
were higher than in 2009 for both Robeco's core business and its subsidiaries Transtrend and
Harbor. The increase in asset management fees is a direct result of the average growth in
managed assets andTranstrend's higher performance-related income. Total interest income
was higher, due in particular to growth of Robeco's interest income. Sarasin generated less
income from trading activities in 2010 and contributed to the EUR 76 million drop in other
results to EUR 47 (123) million.
Operating expenses up 2%
Sarasin's operating expenses were up as a result of the appreciation of the Swiss franc. Thanks
in part to Robeco's sharp cost focus, however, total operating expenses at group level were a
mere 2% higher, rising to EUR 968 (950) million. Staff costs and other administrative expenses
were virtually unchanged. Due to higher amortisation of intangible assets, depreciation and
amortisation charges rose by 7% higher to EUR 117 (109) million.
The outlook for 2011 for the asset management business is relatively favourable, with managed
assets expected to grow further, thanks to positive cash flows and favourable investment
returns on average. For Robeco, the theme for the year 2010 was the new strategic plan for the
period 2010 to 2014, while focusing on capital increases, product clarity and sound investment
returns. Sarasin will continue its strategy of selective growth, investing in such markets as
Singapore and Hong Kong, where it sees opportunities to offer innovative products and
services to clients. Rabobank Private Banking and Schretlen Co are to continue their
development towards a proactive, advice-oriented customer approach, which they initiated in
2010. The investment framework they developed will be implemented further, in preparation
for 2012. The service provision to clients at the local Rabobanks through Schretlen Co's
specialists will be given further shape in 2011Focus will be on customer satisfaction and on
growing the number of high net-worth clients by providing support to corporate clients
seeking to sell their enterprise.
46
Annual Report 2010 Rabobank Group
