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

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Annual Reports Rabobank | 2012 | | pagina 7