Financial results of leasing
Notes to financial results of leasing
Lease portfolio by industry
at year-end 2014
V
Food and agri
Office technology
Construction, transportation
and industrial
Financial institutions
Carlease
Healthcare and clean technology
Consumer finance
Vendor finance operations
Lease portfolio by region
at year-end 2014
32%
16%
169
119
Europe
America
Asia/Pacific
Results
in millions of euros
2014
2013
Change
Interest
1,000
973
3%
Commission
30
52
-42%
Other results
548
545
1%
Total income
1,578
1,570
1%
Staff costs
535
517
3%
Other administrative expenses
251
198
27%
Depreciation
48
49
-2%
Operating expenses
834
764
9%
Gross result
744
806
-8%
Bad debt costs
131
170
-23%
Bank tax expense
9
9
Operating profit before taxation
604
627
-4%
Taxation
168
205
-18%
Net profit
436
422
3%
Bad debt costs (in basis points)
43
59
-27%
Ratios
Efficiency ratio
52.9%
48.7%
RAROC
31.2%
30.6%
Balance sheet (in billions of euros)
31-Dec-14
31-Dec-13
Lease portfolio
33.0
30.2
9%
Capital requirements (in billions of euros)
Regulatory capital 1.4 1.3 8%
Economic capital 1.5 1.4 7%
Number of employees (in FTEs)
5,217
5,117
2%
Income up 1%
Total income from the leasing segment rose 1% to EUR 1,578 (1,570) million in 2014. In line with
the growth of the average lease portfolio, interest profit was up 3% to EUR 1,000 (973) million.
Commission profit declined by EUR 22 million to EUR 30 (52) million. Commissions were high in
2013 as a result of the strong growth of the portfolio in Brazil. Commission profit returned to a
more normal level in 2014. Other results consist mainly of the result from sales of leased products
and income from operational lease contracts. Both these items showed a limited increase
compared to 2013. Other results were up 1% on balance at EUR 548 (545) million.
Operating expenses up 9%
Total operating expenses in the leasing segment rose 9% to EUR 834 (764) million in 2014.
The workforce increased by 100 FTE to 5,217 (5,117) FTE. Staff costs rose in line with this
development by 3% to EUR 535 (517) million. With effect from 2014, the costs incurred by
Rabobank Nederland for group activities are recognised at the segments as other administrative
expenses. Partly due to this change, other administrative expenses in the leasing segment were
up 27% at EUR 251 (198) million. The costs of depreciation and amortisation were more or less
stable at EUR 48 (49) million.
74 Annual Report 2014 Rabobank Group
