Outlook for wholesale banking and international
retail banking
Bad debt costs at 73 basis points
Value adjustments at Rabobank International were up 15% in 2011, reaching EUR 686 (597)
million, due, in part, to additional allocations to the provision for loan losses at ACCBank.
Bad debt costs amounted to 73 (64) basis points of average lending, which is higher than the
long-term average of 54 basis points.
Regulatory capital up 9%
Rabobank International's regulatory capital rose by 9% in 2011, landing at EUR 7.1 (6.5) billion.
Economic capital, the internal capital requirement, was EUR 8.8 (7.4) billion.The capital rose in
both instances due to growth in lending and an increase in market risk because of CRD III.
The economy in the euro zone, and in the Netherlands itself, is not expected to show a quick
recovery. Moderate economic growth is forecast for the years to come. As a result, Rabobank
International's clients, and Rabobank International itself for that matter, will face a difficult year.
Rabobank International will continue to pursue its current strategy, which is based on building
long-term relations with clients and focuses on providing a broad range of service in the
Netherlands and serving the food and agri sector globally.The Direct Banking activities will be
expanded. Rabobank will explore how to widen its operations in regions qualifying as key growth
markets with a large food and agri sector in a manner that is in keeping with the strategy.
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Annual Report 2011 Rabobank Group
