Financial results of domestic retail banking
Results
Notes to financial results of domestic retail banking
Income up 5%
Operating expenses up 9%
comprised almost entirely of mortgage loans, rose by 4% in 2012 to EUR 212.4 (203.9) billion,
loans to theTIS sector were up 2%, reaching EUR 63.9 (62.8) billion, and loans to the food and
agri sector showed a 2% increase, landing at EUR 29.6 (29.1) billion.
in millions of euros
2012
2011
Change
Interest
5,180
5,218
-1%
Fees and commission
1,344
1,357
-1%
Other results
765
366
Total income
7,289
6,941
5%
Staff costs
2,454
2,258
9%
Other administrative expenses
1,755
1,609
9%
Depreciation
151
119
27%
Operating expenses
4,360
3,986
9%
Gross result
2,929
2,955
-1%
Value adjustments
1,329
648
Bank tax expense
91
0
Operating profit before taxation
1,509
2,307
-35%
Taxation
205
454
-55%
Net profit
1,304
1,853
-30%
Bad debt costs (in basis points)
44
22
Ratios
Efficiency ratio
59.8%
57.4%
RAROC
16.3%
24.0%
Balance sheet (in billions of euros)
31-Dec-12
31-Dec-11
Total assets
386.1
373.0
4%
Private sector loan portfolio
306.5
295.8
4%
Amounts due to customers
213.9
200.1
7%
Capital requirements (in billions of euros)
Regulatory capital
6.3
6.4
-2%
Economic capital
9.1
7.2
26%
Number of employees (in FTEs) 28,668 27,272 5%
At 5%, the increase in total income from domestic retail banking was limited, rising to
EUR 7,289 (6,941) billion in the year under review. Despite growth in lending, interest income
from domestic retail banking was down 1% in 2012 to EUR 5,180 (5,218) million, which was
due in particular to lower margins on saving deposits. Commission fell by 1%, dropping to
EUR 1,344 (1,357) million, because of fewer loans being issued and lower securities commission.
Other income, which rose by EUR 399 million to EUR 765 (366) million, is made up primarily of
dividends payable by Rabobank Nederland to the local Rabobanks. Besides an increase in
dividends, other income was up also because of higher earnings from cash management.
Total operating expenses at domestic retail banking were up 9% in 2012, rising to EUR 4,360
(3,986) million. A factor contributing to the 9% increase in staff costs to EUR 2,454 (2,258)
million was the rise in headcount compared with 2011particularly in terms of outside staff.
The upswing in staff costs was also attributable to the addition of the Friesland Bank
employees. Other administrative expenses were up 9% to EUR 1,755 (1,609) million due mainly
to the acquisition of Friesland Bank. Depreciation and amortisation rose to EUR 151 (119) million
because of higher amortisation charges of software and intangibles.
41 Broad range of services in the Netherlands
