Chairman's foreword
Rabobank has had a very turbulent year. It was characterised by challenging
economic conditions and dominated above all by the outcome of the Libor
settlements agreed by Rabobank with national and international supervisory
authorities that led to a payment totalling EUR 774 million.The inadmissible
conduct of a small group of employees of our bank has had huge
conseguences. Our customers, members, employees and other stakeholders
would have never expected this from Rabobank, it's just not like Rabobank at
all. I fully understand the outrage this has prompted both in and outside our
organisation.This has had a major impact on us.The Executive Board has
appologised for this on behalf of Rabobank. Appropriate steps have been taken
against the employees involved and recovery measures have been agreed
with the authorities.
We are entitled to set off a very large portion of the settlement amount of EUR 774 million for
tax purposes, both in the Netherlands and abroad. We have voluntarily opted not to do so,
however. This is a bill we have to foot ourselves.The full amount will therefore be paid by
Rabobank and no one else, especially not the taxpayer.
Our employees have quickly got back into their stride and are working day in, day out to serve
our customers. We have learnt a great deal from this and have put a comprehensive set of
measures in place to reduce our risks, strengthen our compliance and improve our corporate
culture. The Executive Board sets great store by the conscientious application of those measures
and is closely involved in this process. Naturally, restoring the damaged reputation of our bank
is a top priority.
The year 2013 was also eventful in terms of boardroom changes. We bade farewell to several
members of the Executive Board. At the end of 2013 the Executive Board comprised five
members again. The recruitment procedures for a Wholesale Markets Director and a permanent
Chairman are in full progress.
Significant efforts were undertaken in 2013 to ensure full compliance with the increasing
legislation and regulations. This will continue to be a major focus in the year ahead, not least
because Rabobank will come under the direct supervision of the European Supervisory Authority.
Full-year net profit for 2013 was EUR 2,012 million. Earnings were significantly affected by
several major events. Results benefited from the sale of Robeco and the transition to a new
pension scheme.This non-recurring effect was more than offset, however, by the Libor
investigation settlements, substantially higher impairments at Rabo Real Estate Group and the
formation of provisions for reorganisation at the local Rabobanks as part of Vision 2016.
Solvency remained robust with a core tier 1 ratio of 13.5%.
2 Annual Report 2013 Rabobank Group