8 Financial assets held for trading
Cash and balances at central banks
7 Loans and advances to banks
-
-
9 Financial assets designated at fair value
-
7 0 Derivatives and other trade liabilities
Management report
Corporate governance
Consolidated financial statements
Financial statements
Additions to property Additions to property
and equipment and and equipment and
intangible assets in tangible assets
in millions of euros
The Netherlands
Other Eurozone countries
Rest of Europe (non-Eurozone)
North America
Latin America
Asia
Australia
Other and consolidation effects
Total
On 31 December
2015
1,588
944
101
230
7
77
2,947
On 31 December
2014
1,483
109
84
234
3
15
43
1,971
in millions of euros
2015
2014
Cash
861
726
Deposits at central banks other than
mandatory reserve deposits
63,686
42,318
64,547
43,044
Mandatory reserve deposits at central
banks
396
365
Total cash and balances at central banks
64,943
43,409
The average minimum reserve to be held for the Netherlands for
the month of December 2015 was 3,109 (December 2014: 2,964).
in millions of euros
2015
2014
Deposits with other banks
11,220
13,565
Reverse repurchase transactions and securities
borrowing agreements
17,271
27,592
Loans
2,494
4,471
Other
126
120
Gross due from other banks
31,111
45,748
Less: loan impairment charges loans and advances
to banks
(16)
(26)
31,095
45,722
Reclassified assets
115
240
Total loans and advances to banks
31,210
45,962
Loan impairment allowance loans and advances to banks
Balance on 1 January
26
51
Loan impairment charges loans and advances to
banks
(10)
(14)
Write-down of defaulted loans during the year
(17)
Other changes
6
Balance on 31 December
16
26
in millions of euros
Purchased loans
Short-term government securities
Government bonds
Other debt securities
Equity instruments
Total
2015
2014
520
712
19
123
1,073
950
1,637
2,117
223
377
3,472
4,279
in millions of euros
2015
2014
Government bonds
12
Other debt securities
791
2,494
Purchased loans
1,006
1,090
Venture capital (equity instrument)
270
274
Other equity instruments
129
455
Total
2,196
4,325
The change in the current year in the fair value of the loans
designated as being at fair value with adjustments in the
profit and loss account that is allocable to the changes in the
credit risk amounts to 5 (2014:14). The cumulative change is
-29 (2014: -34). Any changes in fair value are calculated by
discounting future cash flows. When setting the discount rate,
account is taken of expected losses, liquidity mark-ups and the
risk margin.
No use is made of credit derivatives to hedge the loans
designated at fair value.
Derivatives are used at Rabobank for the purpose of mitigating
at least a portion of the long-term risks arising from the bank's
various operations. Examples of this include interest-rate swaps
used to hedge interest rate risks arising from the difference in
maturities between assets and liabilities. Another example are
cross-currency swaps, which are used to hedge the currency
risk to which the bank is exposed after issuing debt instruments
in foreign currencies.The bank's hedging policy is designed
to optimise its income within the risk appetite framework.
Derivatives are used for hedging purposes, but are also
contracted for the bank's customers.
The loan impairment charges of the loans and advances to
banks are included in the profit and loss account under 'Loan
impairment charges'. The gross carrying amount of'Loans and
advances to banks'whose value adjustments were established
on an individual basis is 18 (2014: 206).
217 Notes to the consolidated financial statements
