Financial developments
-20%
Economic decline weighing down profit
The economic situation combined with the uncertainty in
the Dutch housing market led to low demand for loans and
mortgages. Rabobank Group's private sector loan portfolio
increased by a marginal 2% only in 2012, rising to EUR 458.1
billion. There was also keen competition in the savings
market. Amounts due to customers increased to EUR 334.3
(329.9) billion. These developments resulted in a loan-to-
deposit ratio of 1.39 (1.38). The provision for loan losses
stood at EUR 2,350 million, up EUR 744 million on 2011,
due, in particular, to the economic decline in the
Netherlands and the slump in the property market.
Marginal growth in loan portfolio
Loan portfolio private clients by sector
Loan portfolio by group entity
Net profit
in millions of euros
2,627
2,112
2011
2012
In addition, bank tax was introduced in the Netherlands in 2012, which caused a further
expense item of EUR 196 million for Rabobank Group. Net profit fell by 20% to EUR 2,112
(2,627) million because of these developments. Return on equity was 5.6% (7.6%). The core
tier 1 ratio was up 0.5 percentage points to reach 13.2% mainly as a result of retained earnings.
Growth in loan portfolio in the Netherlands more or less ground to a halt because of the
economic situation and the uncertainty in the Dutch housing market. Relatively few people
moved house in the Netherlands and many businesses were reluctant with their investments.
The loan portfolio outside the Netherlands too saw moderate growth only due to the weak
global economy.
in billions of euros
at year-end 2012, in
500
400
300
200
100
0
2008
2009
2010
2011
2012
Food and agri
TIS
Private individuals
Domestic retail banking
Wholesale banking and
international retail banking
Leasing
Real estate
6 Annual Report 2012 Rabobank Group