Employees of Rabo Real Estate Group
Financial results of real estate
Results
Notes to financial results of real estate
Income at EUR 430 million
Operating expenses at EUR 292 million
The employees of Rabo Real Estate Group can look back on a turbulent year as a result of the
ongoing crisis in the sector, poor financial results, increasing regulatory requirements, cuts in
government spending, cost cuts and a major reorganisation. In the midst of these hectic times,
a new collective bargaining agreement (CBA) was signed in October 2012. The changes to this
agreement were minimised for now: issues such as pay and the redundancy plan have not been
touched. The parties involved will team up in the coming period to formulate the principles of
the 'CBA of the future', which will reflect the structural changes in the property market.
in millions of euros
2012
2011
Change
Interest
Fees and commission
Other results
Total income
Staff costs
Other administrative expenses
Depreciation
Operating expenses
Gross result
Value adjustments
Operating profit before taxation
Taxation
Profit Rabo Real Estate Group17
Minority interest
Net profit Rabo Real Estate Group1'
Other
Net profit Real estate17
311
35
84
277 12%
41 -15%
205 -59%
-18%
430 523
193 200 -4%
89 122 -27%
10 10
292 332 -12%
138 191 -28%
238 136 75%
-100 55
8 19 -58%
-108 36
5 5
-113 31
6 9 -33%
-107 40
17 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.
Bad debt costs (in basis points)
Number of houses sold
Other information (in billions of euros)
Loan portfolio
Assets under management
Number of employees (in FTEs)
124
6,312
31-Dec-12
19.2
5.5
1,528
69
8,206
31-Dec-11
19.0
5.9
1,608
-23%
1%
-7%
-5%
As the increase in income posted by Rabo Real Estate Group was outweighed by property
impairments; total income showed an 18% decline in 2012, dropping to EUR 430 (523) million.
Interest income was up 12% to reach EUR 311 (277) million thanks to higher margins on new
loans and renewals. Fewer loans were issued than in 2011which caused commission to drop
by 15% to EUR 35 (41) million. FHigher impairment losses on property developments and
strategic land positions contributed to a 59% fall in other income to EUR 84 (205) million.
Rabo Real Estate Group saw its total operating expenses decrease by 12%, landing at EUR 292
(332) million in 2012. The headcount was lower as a result of staff cuts at Bouwfonds Property
Development, Bouwfonds REIM, MAB Development and the Management Centre, among
other divisions. Staff costs fell by 4% to EUR 193 (200) million as a result. Other administrative
expenses, which had been high in 2011 because of a reorganisation allowance, dropped by
27% to EUR 89 (122) million. At EUR 10 (10) million, depreciation and amortisation charges
were more or less stable.
72 Annual Report 2012 Rabobank Group
