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Overview forborne assets
in millions of euros
31-Dec-2014
Private
sector loan
porfolio
Forborne
assets (gross
carrying
amount)
Performing
forborne
assets
Of which (a):
instruments with
modifications in
the terms and
conditions
Of which (b)
refinancing
Non-
performing
forborne
assets
Of which (a):
instruments with
modifications in
the terms and
conditions
Of which (b):
refinancing
Loan loss
allowance on
non-performing
forborne assets
Domestic retail banking
290,541
8,882
4,354
3,807
547
4,528
4,008
520
1,856
Wholesale banking and
international retail banking
95,192
3,971
1,193
640
554
2,778
2,211
566
1,083
Leasing
27,465
180
180
119
61
44
Real Estate
16,711
2,284
154
154
2,130
2,115
15
724
Other
483
Rabobank Group
430,392
15,317
5,701
4,601
1,101
9,615
8,453
1,163
3,707
Non-performing loans meet at least one of the following criteria:
They are material loans in arrears by more than 90 days;
It is likely that the debtor will not fully repay his debt (either the principal, the interest or the
fees) without the bank having to resort to the execution of collateral (if available), regardless
of the number of days or the amount in arrears.
The table below shows the size of non-performing loans per activity.
Non-performing loans
in millions of euros
31-Dec-2014
Domestic retail banking
10,492
Wholesale banking and international retail banking
6,437
Leasing
576
Real estate
3,745
Rabobank Group
21,250
Developments in the real estate portfolio
Rabobank's portfolio of commercial real estate in the Netherlands is managed primarily by
FGH Bank and the local Rabobanks.The commercial real estate market deteriorated further in
2014, particularly in the offices and retail segments. Long-term trends like the ageing
population, 'the new way of working' and online shopping were important factors. Due to the
current market conditions, in which there is a clear distinction between properties with little or
no prospect of viability and those with a chance of success, the quality of the commercial real
estate loan portfolio has declined. In particular, less marketable properties have declined in
value. The review and valuation policy and the special accounts policy are based on a risk-
oriented approach. Where reviews reveal that the assumed value may no longer reflect the
current market value, the value is reassessed. Valuations are performed by an independent
valuer. Rabobank thereby complies with the requirements set by De Nederlandsche Bank (DNB)
for valuation, and the validity of valuations.
Asa result of the report by the Valuers and Accountants Platform (Platform Taxateurs en
Accountants, or 'PTA') on the valuation of real estate, Rabobank brought its valuation process in
line with the recommendations made in connection with the banking process in 2013 where
this was not already the case.
At Rabobank Group, management of the commercial real estate portfolio in the Netherlands
was intensified several years ago. The Commercial Real Estate Task Force was set up for this
specific purpose in mid-2010. The Task Force frequently reports to the Executive Board on
developments in the size of the Dutch portfolio and the level of risk it contains, and it will
continue to keep a close eye on developments in the market and in the portfolio for the next
few years. Steps to tighten the financing, revision and valuation policy have already been taken
in recent years.
91 Rock-solid bank: risk management
