Financial results of wholesale banking and
international retail banking
Notes to financial results of wholesale banking and
international retail banking
Results
in millions of euros
2014
2013
Change
Interest
2,416
2,606
-7%
Commission
552
641
-14%
Other results
799
793
1%
Total income
3,767
4,040
-7%
Staff costs
1,164
1,270
-8%
Other administrative expenses
1,166
1,736
-31%
Depreciation
87
126
-31%
Operating expenses
2,417
3,132
-23%
Gross result
1,350
908
49%
Bad debt costs
420
568
-26%
Bank tax expense
67
75
-11%
Operating profit before taxation
863
265
Taxation
105
219
-52%
Net profit
758
46
Bad debt costs (in basis points)
44
57
-23%
Ratios
Efficiency ratio
64.2%
77.5%
RAROC
10.2%
0.6%
Balance sheet (in billions of euros)
31-Dec-14
31-Dec-13
Total assets
495.1
483.0
3%
Private sector loan portfolio
95.2
87.8
8%
Amounts due to customers
115.8
108.5
7%
Capital requirements (in billions of euros)
Regulatory capital
6.4
6.2
3%
Economic capital
7.3
7.0
4%
Number of employees (in FTEs)
9,546
15,941
-40%
Income down 7%
Total income at the wholesale banking and international retail banking division declined 7% in
2014 to EUR 3,767 (4,040) million. The lower level of activity as a result of the sale of Bank BGZ
and the reduction of the high-risk activities contributed to a decline in interest profit of EUR 190
million to EUR 2,416 (2,606) million. The lower level of activity also played an important part in
the decline in commissions of EUR 89 million to EUR 552 (641million. A further reduction and a
positive revaluation of illiquid assets contributed positively to the other results in 2014, which
rose by EUR 6 million to EUR 799 (793) million.
Operating expenses down 23%
Total operating expenses at the wholesale banking and international retail banking division
declined 23% in 2014 to EUR 2,417 (3,132) million. The sale of Bank BGZ led to a decline in the
number of employees of 5,289 FTE. The reduction in staff in combination with the lower level of
activity contributed to a decline in staff costs of 8% to EUR 1,164 (1,270) million.
Annual Report 2014 Rabobank Group
