7 7 Loans and advances to customers
Conso idated financial statements Financia statements Pillar 3
Management report
Corporate governance
in millions of euros
Loans initiated by Rabobank:
Loans to government clients:
- leases
- other
Loans to private clients:
- overdrafts
- mortgages
- leases
- reverse repurchase transactions and securities
borrowing agreements
- corporate loans
- other
Gross loans and advances to customers
The table below shows the carrying amounts and fair values of
the reclassified assets.
Less: loan impairment allowance loans and advances
to customers
Reclassified assets
Total loans and advances to customers
227 207
3,064 1,928
22,486 24,983
212,685 218,482
25,923 24,078
20,151 18,295
173,899 175,123
7,773 6,744
466,208 469,840
(8,372) (9,348)
457,836 460,492
782 1,295
458,618 461,787
31 December 2015
31 December 2014
in millions of euros
Carrying
amount
Fair value
Carrying
amount
Fair value
Financial assets held for
trading reclassified to loans
183
174
347
334
Available-for-sale financial
assets reclassified to loans
714
678
1,188
1,213
Total financial assets
reclassified to loans
897
852
1,535
1,547
Loan impairment allowance loans and advances to customers
Balance on 1 January 9,348
Loan impairment charges from loans and advances to
customers
Write-down of defaulted loans during the year
Interest and other changes
Total loan impairment allowance loans and
advances to customers
1,134
(2,307)
197
8,372
8,581
2,762
(2,227)
232
9,348
Individual value adjustment (specific allowance) 6,502 7,092
Collective value adjustment (collective allowance) 997 1,284
IBNR 873 972
Total loan impairment allowance loans and
advances to customers 8,372 9,348
Gross carrying amount of loans whose value
adjustments were established on an individual basis
17,965
18,567
Rabobank acquired financial and non-financial assets during the
year by taking possession of collateral with an estimated value
of 62 (2014:86). It is the policy of Rabobank to sell these assets
in the reasonably foreseeable future. Yields are allocated to
repay the outstanding amount.
Reclassified assets
In 2008, based on the amendments to IAS 39 and IFRS 7,
'Reclassification of financial assets', Rabobank reclassified
a number of'Financial assets held for trading'and 'Available-for-
sale financial assets' to 'Loans and advances to customers' and
'Loans and advances to banks'.
Rabobank has identified assets to which this amendment
applies, whereby the intention has clearly shifted from
holding the securities for the near future as opposed to
selling or trading them in the short term.The reclassifications
were effected as of 1 July 2008 at their fair value at the time.
This note provides details on the impact of the reclassifications
at Rabobank.
If the reclassification had not been made, net profit for
the assets held for trading would have been 2 higher
(2014:26 higher).The change in the equity position in 2015
would have been 43 more negative (2014: 62 more negative)
if the reclassification of the available-for-sale financial assets
had not been carried out.
Following reclassification, the reclassified financial assets made
the following contribution to operating profit before taxation:
For the year ended 31 December
2015 2014
Net interest income 3
Loan impairment charges - 1
Operating profit before taxation on
reclassified financial assets held for trading 3 1
Net interest income 16 37
Loan impairment charges 2 121
Operating profit before taxation on
reclassified available-for-sale financial assets 18 158
Loan impairment charges include reversed impairments and
recoveries subsequent to write-downs to the amount of
3 (2014:148) and impairments to the amount of 1 (2014: 26).
Finance leases
Loans and advances to customers also includes receivables
from finance leases, which can be broken down as follows:
in millions of euros 2015 2014
Receivables from gross investment in
finance leases
Not exceeding 1 year 8,872 8,798
Longer than 1 year but less than 5 years 18,775 17,370
Longer than 5 years 1,183 857
Total receivables from gross investment
in finance leases 28,830 27,025
Unearned deferred finance income from
finance leases 2,967 3,074
Net investment in finance leases 25,863 23,951
Net investment in finance leases
Not exceeding 1 year 8,575 7,838
Longer than 1 year but less than 5 years 16,443 15,391
Longer than 5 years 845 722
Net investment in finance leases 25,863 23,951
222 Rabobank Annual Report 2015
