Development of equity
Equity
Composition of equity
in billions of euros
Equity at the end of December 2012
42.1*
Net profit
2.0
As a result of changes to IAS 19,
Payments on Rabobank Member Certificates, hybrid capital and
other non-controlling interests
-1.1
international accounting rules applying to
Reserve capacity
0.9
pension liabilities, actuarial results have to
Revaluation of liability for pension entitlements
-0.8
be recognised directly in equity with effect
Change to Rabobank Member Certificates
-0.8
from 2013. Previously these items were
Change in non-controlling interests
-0.4
recognised using a deferral mechanism
Foreign currency translation reserve
-0.4
known as the corridor method.The change
Repayment of hybrid capital
-0.1
resulted in a decline in equity of EUR 2.3
Other changes
-0.5
billion as at 31 December 2012.
Equity at the end of December 2013
40.0
Rabobank Member Certificates converted to Rabobank Certificates
In early 2014, Rabobank increased the tradability of Rabobank Member Certificates by listing
the certificates on the stock exchange and thereby making them available for trading to
non-members. As a result of the listing on Euronext Amsterdam, supply and demand will be
determined by a public market with greater liquidity, and no longer by a relatively small internal
market. The planned minimum distribution has been raised from 5.2% to 6.5% on an annual
basis. The market listing was approved with a majority of 99.79% of the votes present by the
holders of Rabobank Member Certificates at the certificate holder meeting on 14 January 2014.
The certificates were listed on Euronext Amsterdam under the name of Rabobank Certificates
with effect from 27 January 2014.
Development of capital ratios
The capital ratio, which expresses the relationship between the qualifying capital and the risk-
weighted assets, stood at 19.8% at the end of 2013 (19.0%). The tier 1 ratio stood at 16.6%
(17.2%) and the core tier 1 ratio came to 13.5% (13.1%). The common equity tier 1 ratio,
calculated on the basis of full application of the Basel III rules (CRR/CRD IV), stood at 11.1% on
31 December 2013. This measure is also known as the fully loaded common equity tier 1 ratio.
The equity capital ratio came to 16.1% (15.3%). This ratio shows the relationship between the
balance of retained earnings and the Rabobank Member Certificates to the risk-weighted assets.
in billions of euros
50
40
30
20
10
0
!010 2011 2012 2013
Other non-controlling
interests
Hybrid capital
Rabo Member Certificates
Reserves and retained
earnings
at year-end 2013, in billions of euros
Retained earnings
and reserves
Capital securities
Rabo Member Certificates
Trust Preferred Securities
Other non-controlling
interests
12 Annual Report 2013 Rabobank Group
