Financial results of real estate
Results (in millions of euros)
Bad debt costs at 36 basis points
2010
2009
Change
Interest
246
174
41%
Commission
27
46
-41%
Other results
210
231
-9%
Total income
483
451
7%
Staff costs
193
209
-8%
Other administrative expenses
79
106
-25%
Depreciation and amortisation
8
8
Operating expenses
280
323
-13%
Gross result
203
128
59%
Value adjustments
57
22
Operating profit before taxation
146
106
38%
Taxation
42
27
56%
Profit Rabo Real Estate Group10
104
79
32%
Minority interest
-2
-11
-82%
Net profit Rabo Real Estate Group10
106
90
18%
Other
-64
-22
Net profit Real estate
42
68
-38%
Bad debt costs (in basis points) 36 14
Number of houses sold 9,278 7,341 26%
Other information (in billions of euros) 31-Dec-10 31-Dec-09
Loan portfolio 17.8 17.2 3%
Assets under management 7.2 7.0 3%
Number of employees (in FTEs) 1,559 1,549 1
Income up 7%
Rabo Real Estate Group saw its total income increase by 7%, rising to EUR 483 (451) million in
2010. Interest income was up 41 tot EUR 246 (174) million thanks to higher margins on new
loans and contract renewals, favourable developments in interest rates and volume growth.
Commission fell by 41% to EUR 27 (46) million. Commissions were high in 2009 because of
a one-off payment to FGH Bank as a result of the repurchase of debt securities. Owing in
particular to the fact that Bouwfonds Property Development completed lower priced homes
on average, other results dropped to EUR 210 (231) million.
10 The items 'profit for the year Rabo
Real Estate Group' and 'net profit Rabo
Real Estate Group' correspond to the
financial results published by Rabo Real
Estate Group itself. The item 'net profit
real estate division' is inclusive of the
amortisation and financing charges that
were incurred due to the acquisition of
Bouwfonds divisions and differences in
accounting policies.
Operating expenses down 13%
Rabo Real Estate Group's total operating expenses declined by 13% in 2010, falling to EUR 280
(323) million. The headcount was more or less stable at 1,559 (1,549) FTEs. Staff costs fell by
8% to EUR 193 (209) million. The drop in other administrative expenses was the main factor in
the lower operating expenses. Other administrative expenses were down 25% to EUR 79 (106)
million thanks to the cost-cutting programme that had been initiated in 2009. Depreciation and
amortisation was stable at EUR 8 (8) million.
Despite the tentative recovery that started in mid-2010, the Dutch property market was still
suffering the consequences of the credit crunch in 2010. Bad debt costs were up at Rabo Real
Estate Group because of the late-cycle character of the business. Value adjustments stood at
EUR 57 (22) million at Rabo Real Estate Group, which corresponds to 36 (14) basis points of
average lending.
56
Annual Report 2010 Rabobank Group
