Impaired loans and allowance for loan losses
in millions of euros
31-Dec-14
Impaired loans
Impaired loans
in of loan portfolio
Allowances
Allowances in of
impaired loans
Domestic retail banking
8,696
3.0%
4,884
56%
Wholesale banking and
international retail banking
3,636
3.9%
2,881
79%
Leasing
643
2.3%
403
63%
Real Estate
3,148
18.8%
1,270
40%
Rabobank Group
16,122
3.8%
9,438
59%
Impaired loans and allowance for loan losses
in millions of euros
31-Dec-13
Impaired loans
Impaired loans
in of loan portfolio
Allowances
Allowances in of
impaired loans
Domestic retail banking
8,987
3.0%
4,611
51%
Wholesale banking and
international retail banking
3,697
4.1%
2,777
75%
Leasing
721
2.9%
480
67%
Real Estate
2,767
15.1%
842
30%
Rabobank Group
16,171
3.7%
8,710
54%
Bad debt costs were again high in 2014, especially in the Dutch portfolio and specifically in
the commercial real estate sector. Expressed in basis points of average private sector lending,
bad debt costs stood at 54 in the first half of 2014 and at 65 in the second half of the year.
This movement involved primarily the addition connected with the SSM AQR.The ten-year
average (period 2004-2013) for bad debt costs is 32 basis points.
Bad debt costs by Group entity
in millions of euros
2014
2013
Domestic retail banking
1,422
1,384
Wholesale banking and international retail banking
420
568
Leasing
131
170
Real estate
656
513
Other
4
8
Rabobank Group
2,633
2,643
Bad debt costs by Group entity
in basis points of the average loan portfolio
2014
2013
Domestic retail banking
48
45
Wholesale banking and international retail banking
44
57
Leasing
43
59
Real estate
364
278
Rabobank Group
60
59
Forbearance and non-performing loans
The identification of forbearance measures for the corporate portfolio is based on the current
Loan Quality Classification framework, with forbearance measures only applying to the classified
portfolio. If forbearance measures are applied to a debtor, the debtor will by definition be dealt
with by the Special Accounts department. In addition, all debtors in the retail portfolio to whom
forbearance measures are applied are required to be included in the Special Accounts portfolio.
Lastly, items in the forbearance category must be reported for up to two years after a recovery.
This period of two years is referred to as 'probationary period'.
Annual Report 2014 Rabobank Group
