extraordinary and non-recurring items on the result was positive. The much larger impairments
on real estate and land holdings and the lower result from hedge accounting had a negative
effect. The result was also pressured by the provisions for reorganisation formed at the end of
2013 at the local Rabobanks in connection with the Vision 2016 programme. These factors on
balance led to a slight decline in the result compared to 2012.
The reserve capacity, which is the net profit after deduction of non-controlling interests and
after the payments on Rabobank Member Certificates and hybrid capital instruments, came to
EUR 929 (843) million. This amount has been added to the capital of Rabobank Group.
Corporation tax came to EUR 68 (158) million; this corresponds to an effective tax burden of
16.4% (7.6%). One reason for the relatively low tax burden was the untaxed results on associates,
such as the interest in Achmea.
Income down 4%
Rabobank Group's total income fell by EUR 596 million to EUR 13,020 (13,616) million in 2013.
Interest income remained more or less stable at EUR 9,093 (9,171) million. This was due to a
restoration of the margin on savings at the local Rabobanks and the loss of part of the interest
income due to the sale of Sarasin. Sarasin was still contributing to commission income for six
months in 2012. Partly due to the absence of this income, commissions declined by EUR 228
million to EUR 2,000 (2,228) million in 2013. Since Robeco was still included in the figures as a
discontinued operation at the end of 2012, the sale of this division did not lead to a change in
commission income compared to 2012.
The other results rose as a result of the transition to the new pension scheme, however this
item was negatively affected by higher impairments on real estate and land holdings and the
lower result from hedge accounting. On balance, other income was down EUR 290 million at
EUR 1,927 (2,217) million.
Operating expenses up 8%
Rabobank Group's total operating expenses rose by EUR 762 million to EUR 9,765 (9,003) million
in 2013. The staff complement declined by 2,758 FTE in 2013, to 56,870 (59,628) FTE, 1,387 FTE
of which was due to the sale of Robeco. There was also a decline of 1,689 FTE at the local
Rabobanks and Friesland Bank.The employee expenses at Sarasin were still included in the
operating expenses at group level for six months in 2012. The decline in the staff complement,
in combination with the absence of the expenses for Sarasin, caused employee expenses to
decline by EUR 169 million to EUR 5,325 (5,494) million.
Other administrative expenses rose at Rabobank International as a result of the settlements
relating to the Libor investigations. At Rabobank Nederland, other administrative expenses
increased due to higher costs of innovation associated with the further development of the
virtual customer service as part of Vision 2016.
Moreover, both the local Rabobanks and Rabo Real Estate Group faced higher costs of
reorganisation. The implementation ofVision 2016 led to heavy cuts in staff at the local
Rabobanks, and a decision was made to phase out the commercial real estate development
activities at Rabo Real Estate Group. The sale of Sarasin on the other hand led to a reduction in
other administrative expenses. On balance, other administrative expenses came to EUR 3,912
(2,983) million. Depreciation and amortisation charges remained virtually unchanged at
EUR 528 (526) million.
16 Annual Report 2013 Rabobank Group
