Financial results of Rabobank Group Notes to financial results of Rabobank Group Results (in millions of euros) Interest 2011 9,229 2010 8,614 Change 7% Commission 2,981 2,831 5% Other results 1,168 1,271 -8% Total income 13,378 12,716 5% Staff costs 5,141 4,919 5% Other administrative expenses 3,001 2,706 11% Depreciation and amortisation 578 571 1% Total operating expenses 8,720 8,196 6% Gross profit 4,658 4,520 3% Value adjustments 1,606 1,234 30% Operating profit before taxation 3,052 3,286 -7% Taxation 425 514 -17% Net profit 2,627 2,772 -5% Bad debt costs (in basis point) 37 29 28% Ratios Efficiency ratio 65.2% 64.5% Return on equity 7.6% 8.6% RAROC 11.8% 12.5% Balance sheet (in billions of euros) Total assets 31-Dec-11 731.7 31-Dec-10 652.5 12% Private sector loan portfolio 448.3 436.3 3% Amounts due to customers 329.9 298.8 10% Capital requirements (in billions of euros) Regulatory capital 17.9 17.6 2% Economic capital 22.8 22.3 2% Qualifying capital 39.1 35.7 10% Capital ratios Tier 1 ratio 17.0% 1 5.7% Core tier 1 ratio 12.7% 12.6% Number of employees (in FTEs) 59,670 58,714 2% Income up 5% Rabobank Group's total income was up 5%, rising to EUR 13,378 (12,716) million, despite the economic downturn. In 2011,62% (61%) of Rabobank Group's total income was generated in the Netherlands. An increase in lending and higher margins at De Lage Landen and FGH Bank fuelled a 7% rise in interest income to EUR 9,229 (8,614) million. Margins on savings were under pressure at the local Rabobanks. Commission income at group level was up 5%, growing to EUR 2,981 (2,831) million, as commissions on payment transactions and loans increased. While other income soared in the first half of 2011 because of a steepening yield curve, the curve levelled off again in the second half of the year, eliminating this positive effect entirely. Impairments on land suffered by the real estate business and lower income from the equity interest in Achmea drove the 8% drop in other income to EUR 1,168 (1,271) million. 11 Financial developments

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Annual Reports Rabobank | 2011 | | pagina 12