Leading food and agri bank
at international level
Strengthening our market leadership and expanding
our food and agri focus
retail banking division came to EUR 52 million in 2013, a decline of EUR 652
million compared to 2012.The lower net profit was significantly affected
by the settlements agreed by Rabobank after the Libor investigations.
The settlements led to a payment of EUR 774 million to various authorities at
the end of 2013.The result in 2012 was moreover positively affected by the
sale of the shares in Yes Bank. Apart from these non-recurring events, there
were positive results at Corporate Lending, Capital Markets, Acguisition
Finance and Global Client Solutions in 2013. In addition, the result from the
international rural and retail activities improved and the phasing out of the
illiquid assets portfolio contributed to the result. Internationally speaking,
economic growth returned, which led to a fall in bad debt costs at Rabobank
International. Expressed in basis points of the average loan portfolio, bad
debt costs came to 57 basis points, against a long-term average of 54 basis
points. The further phasing out of lending to non-core activities, in
combination with the depreciation of the US and the Australian dollar
(among other currencies) and the agreement reached regarding the sale of
Bank BGZ, contributed to a 14% contraction in the total loan portfolio to
EUR 92.1 billion.The share of food and agri increased to 54% of the total
portfolio. Combined customer savings deposits at the RaboDirect savings
banks rose by EUR 5.5 billion to EUR 29.1 billion.
Due to its limited contribution to our strategic objectives and as a result of
changes to regulation, Rabobank International has decided not to continue
its Equity Derivatives operations. Agreement has been reached with BNP
Paribas Group regarding the sale of Bank BGZ for a sum of approximately
EUR 1 billion. Completion of the transaction is subject to receipt of the
necessary statutory approvals. It has also been decided to introduce further
reorganisation at ACCBank and to phase out the regular service provision to
customers. The transfer of the wholesale clients of Friesland Bank to
Rabobank International was completed in 2013.
www.rabobank.com The net profit from the wholesale banking and international rural and
50 Annual Report 2013 Rabobank Group
