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