Contents Management report Corporate governance Consolidated financial statements Financial statements Pillar 3
TVS loan portfolio analysed by industry
in millions of euros
2015
2014
Lessors of real estate
24,042
26,202
Finance and insurance (except banks)
14,296
14,091
Wholesale
10,986
11,194
Activities related to real estate
5,103
6,253
Manufacturing
7,806
10,752
Transport and warehousing
6,281
6,103
Construction
5,214
5,343
Healthcare and social assistance
5,866
5,968
Professional, scientific and technical services
9,275
9,478
Retail (non-food)
4,499
4,718
Utilities
3,011
2,364
Information and communication
888
823
Arts, entertainment and leisure
1,414
1,340
Other TIS
21,782
22,275
Total loans granted to TIS
120,463
126,904
Food and agri loan portfolio analysed by sector
in millions of euros
2015
2014
Grain and oil seeds
18,691
17,474
Animal protein
23,769
22,977
Dairy
14,373
14,031
F ruit and vegetables
10,865
9,933
Farm inputs
7,951
7,249
Food retail
3,901
4,276
Beverages
2,670
3,823
Flowers
1,711
1,792
Sugar
2,671
2,285
Miscellaneous crop farming
2,069
1,772
Other food and agri
9,156
6,427
Total loans granted to food and agri
97,827
92,039
4.4.3 Derivatives
Rabobank sets strict limits for open positions, in amounts as
well as in terms. If ISDA (International Swaps and Derivatives
Association) standards apply or a master agreement including
equivalent terms has been concluded with the counterparty,
and if the jurisdiction of the counterparty permits offsetting,
the net open position is monitored and reported.This credit
risk is managed as part of the general lending limits for clients.
Where needed, Rabobank obtains collateral or other safeguards
with respect to credit risks inherent in these transactions.
The credit risk exposure represents the current fair value of all
open derivative contracts showing a positive market value,
taking into account master netting agreements enforceable
under law.
4.4.4 Collateral and credit management methods
The credit risk Rabobank is exposed to is restricted in part by
obtaining collateral where necessary.The amount and nature
of the collateral required depends partly on the assessment of
the credit risk of the loan to the counterparty. Rabobank follows
guidelines for the purpose of accepting and valuing different
types of collateral. The major types of collateral are:
Residential mortgage collateral;
Mortgage collateral on immovable property, pledges on
movable property, inventories and receivables, mainly for
business loans;
Cash and securities, mainly for securities lending activities
and reverse repurchase transactions.
The management monitors the market value of collateral
obtained and requires additional collateral where necessary.
Rabobank also uses credit derivatives to manage credit risks.
Rabobank further limits its exposure to credit risk by entering
into master netting arrangements with counterparties for
a significant volume of transactions. In general, master
netting arrangements do not lead to the offsetting of assets
and liabilities included in the statement of financial position
because transactions are usually settled gross.The credit risk is
limited by master netting arrangements, but only to the extent
that if an event or cancellation occurs, all amounts involving
the counterparty are frozen and settled net.The total credit
risk exposure of Rabobank from derivatives to which offsetting
arrangements apply is highly sensitive to the closure of new
transactions, the lapse of existing transactions and fluctuations
in market interest and exchange rates.
The table below shows offsets which have been applied in
the consolidated balance sheet (IAS 32 Offsetting) and offsets
which have not been applied in the consolidated balance
sheet. The remaining offsets consist of securities Rabobank has
received from reverse repurchase transactions and securities
Rabobank has provided in relation to loans for repurchase
transactions.
196 Rabobank Annual Report 2015
