Contents Management report
Equity
in billions of euros
50
40
111
31-12 31-12 31-12
2013 2014 2015
I Other non-controlling interests
Hybrid capital
Rabobank Certificates
Retained earnings and reserves
Composition of equity
at year-end 2015, in billions of euros
25.7
8.0
5.9
1.1
0.5
Retained earnings and reserves
Capital Securities
J Rabobank Certificates
I Trust Preferred Securities
Other non-controlling interests
Corporate governance Consolidated financial statements Financial statements Pillar 3
Increase of equity by EUR 2.4 billion
In 2015, the equity of Rabobank Group increased by EUR 2.4 billion to EUR 41.3 (38.9)
billion.This increase was mainly the result of retained earnings and the issue of hybrid
capital.The reserve capacity - the amount of net profit that can be added to capital -
amounted to EUR 0.9 billion. Following the issue of additional tier 1 capital, the equity
increased by EUR 1.5 billion in January 2015.
Of equity, 62% (64%) consists of retained earnings and reserves, 15% (15%) Rabobank
Certificates, 22% (20%) hybrid capital and subordinated capital instruments and
1% (1%) other non-controlling
interests. On 31 December 2015, the amount of retained earnings and reserves was
EUR 25.7 (24.9) billion. On this date, Rabobank's distributable items amounted to
EUR 4.3 (4.9) billion.The distributable items are those components that are directly
distributable from the equity. On 1 January 2016, as a result of the merger between the
local Rabobanks and the cooperative central organisation, the distributable items rose
to EUR 25.7 billion.
Development of equity
in billions of euros
Equity at the end of December 2014
38.9
Net profit
2.2
Payments on certificates, hybrid capital and other non-controlling interests
1.3
Reserve capacity
0.9
Issue of additional tier 1 capital
1.5
Equity at the end of December 2015
41.3
Rabobank Certificates
Rabobank Certificates are listed on Euronext Amsterdam. In 2015, the price fluctuated
between 107.25% (lowest price on 24 August 2015) and 117.24% (highest price on
13-04-2015). The price on 31 December 2015 was 111.58% (107.45%).
Negative ECB interest on deposits
In June and September 2014, the Governing Council of the ECB decided to reduce the
deposit interest rate that had stood at 0% since July 2012 to -0.20%.This is a highly
unusual measure, since it means that banks (hence, including Rabobank) will have to
pay if they hold surplus funds overnight at the ECB. As of 9 December 2015, the ECB
reduced the deposit rate by a further 0.1 percentage points to -0.30%.
The negative deposit interest rate also resulted in negative values for Eonia and
Euribor. Since the interest rates on some Rabobank products are linked to Eonia and
Euribor, some customer groups no longer received any interest and instead have had
to pay interest on the credit balances they hold at the bank. This is a relatively small
group of customers consisting primarily of financial institutions and large corporate
organisations that hold surplus funds at Rabobank for a short period.
Development of capital ratios
edtf 11 The Capital Requirements Regulation (CRR) and the Capital Requirements
Directive IV (CRD IV) collectively form the European conversion of the Basel
capital and liquidity agreement of 2010 (Basel III).These regulations have applied to
Rabobank since 1 January 2014. The regulations will be phased in over a number of
20 Rabobank Annual Report 2015
