Financial results of domestic retail banking
Notes to financial results of domestic retail banking
Results
in millions of euros
2014
2013
Change
Interest
5,783
5,605
3%
Commission
1,318
1,319
Other results
349
616
-43%
Total income
7,450
7,540
-1%
Staff costs
2,302
2,463
-7%
Other administrative expenses
2,233
2,408
-7%
Depreciation
127
144
-12%
Operating expenses
4,662
5,015
-7%
Gross result
2,788
2,525
10%
Bad debt costs
1,422
1,384
3%
Bank tax expense and resolution levy
354
90
Operating profit before taxation
1,012
1,051
-4%
Taxation
261
270
-3%
Net profit
751
781
-4%
Bad debt costs (in basis points)
48
45
7%
Ratios
Efficiency ratio
62.6%
66.5%
RAROC 8.2% 8.6%
Balance sheet (in billions of euros)
31-Dec-14
31-Dec-13
Total assets
354.3
376.3
-6%
Private sector loan portfolio
290.5
303.1
-4%
Amounts due to customers
209.1
215.7
-3%
Capital requirements (in billions of euros)
Regulatory capital
6.5
6.6
-2%
Economic capital
8.8
9.1
-3%
Number of employees (in FTEs)
23,993
26,999
-11%
Income down 1%
Total income from the domestic retail banking business was down 1% in 2014 at EUR 7,450 (7,540)
million. The slight recovery in margins on private savings contributed to a 3% increase in
interest profit to EUR 5,783 (5,605) million. Commission profit on insurance and investment
products was lower than in 2013, but was compensated for by higher commission profit on
payment services. Commissions also remained stable on balance, at EUR 1,318 (1,319) million.
The transition to the new pension scheme also positively affected the other results in 2013.
Unlike in 2013, Rabobank Nederland once again distributed dividend to the local Rabobanks in
2014. Due to these effects, there was a net decline in the other results of EUR 267 million to
EUR 349 (616) million.
Operating expenses down 7%
Total operating expenses at the domestic retail banking business were down 7% in 2014, falling
to EUR 4,662 (5,015) million. The number of staff at the local Rabobanks declined due to the
implementation of Vision 2016. The transfer of customers from Friesland Bank to Rabobank was
completed on 1 August 2014. There have been no employees at Friesland Bank since 1 October
2014. As a result of these developments, staff costs fell by EUR 161 million to EUR 2,302 (2,463)
million. Other administrative expenses were affected by reorganisation costs, costs of
Rock-solid bank: performance
