Rock-solid bank: performance
Wholesale banking and international retail banking
Focus on market leadership in the Netherlands and food and agri
internationally
The net result of the wholesale banking and international retail banking
division amounted to EUR 758 million in 2014, an increase of EUR 712 million
compared to 2013. Lower operating expenses and lower bad debt costs at
both the international rural and retail banking and the wholesale banking
business led to an increase in net profit.
Bad debt costs declined by EUR 148 million and amounted to EUR420 million
or 44 basis points of the average loan portfolio. The long-term average is
57 basis points. Operating expenses were higher in 2013 due to the
settlement of EUR 774 million agreed by Rabobank after the Libor
investigations. A significant contraction in the illiquid assets portfolio
positively affected income in 2014. Mainly due to currency effects, the
loan portfolio increased by EUR 7.4 billion to EUR 95.2 billion.
The share of food and agri as part of the total loan portfolio amounted to
58%, an increase of 2 percentage points compared to year-end 2013.
Amounts due to customers rose 7% to EUR 115.8 billion and collective
savings at the RaboDirect savings banks increased 5% to EUR 30.4 billion.
Much attention was devoted to the integration of Wholesale, Rural Retail
and Rabobank Nederland in 2014. In addition, the sale of Bank BGZ to the
BNP Paribas Group was completed in September.
Strategy for Wholesale, Rural Retail
Wholesale, Rural Retail (formerly Rabobank International) and Rabobank Nederland have been
managed as one unit since mid-2014. The strategy for Wholesale, Rural Retail has not
changed: the main objectives are still to strengthen our market leading position in the
Netherlands and to continue to play a leading role in the international food and agri sector for
our customers. In the context of the provision of services to our Dutch and international
customers, Wholesale offers a number of specialist products and services that ensure an
optimal service to our customers.
Rural and retail banking also focuses mainly on food and agri. The aim of the rural banks is to
have a portfolio consisting of at least 95% food and agri. In the case of the retail banks, this
target is set at 40-50% for Rabobank NA, while a strategic reorientation has been introduced at
Rabobank Indonesia whereby the food and agri focus will be increased to 80% of the portfolio
over time.
63 Rock-solid bank: performance
