-
-
-
-
Contents Management report Corporate governance Consolidated financial statements Financial statements Pillar 3
years.The fully loaded common equity tier 1-ratio is the
common equity tier 1 (CET1) ratio after this phasing-in period.
The fully loaded common equity tier 1 ratio reached
12.0% (11.8%) on 31 December 2015. The actual CET1 ratio as of
year-end 2015 was 13.5% (13.6%).This ratio was at a somewhat
lower level because various adjustments will be gradually
applied to the capital over the coming years, in line with
regulations.
The leverage ratio is the tier 1 capital divided by balance sheet
positions and off-balance-sheet liabilities and is calculated based
on the definitions in CRR/CRD IV. On 31 December 2015, the fully
loaded leverage ratio stood at 3.9%.The fully loaded leverage
ratio is the leverage ratio assuming that the conditions of the
new regulations are now applied in full.The actual leverage
ratio on 31 December 2015 stood at 5.1% (4.9%).This ratio was
higher than the fully loaded leverage ratio at 31 December 2015
because various adjustments will be gradually applied to the
capital over the coming years, in line with the regulations.
The actual leverage ratio is well above the minimum leverage
ratio of 3% according to the Basel III guidelines.
The CRR has a number of CET1 deductible items, such as the
deferred tax assets and the internal ratings-based (IRB) shortfall
(this is the difference between the IRB expected loss and the
provisions), which are gradually being introduced over the 2014
to 2018 period.
The CET1 ratio decreased by 0.1 percentage points in 2015 to
13.5% (13.6%) due to a slight increase in risk-weighted assets.
In early 2015, the CET1 capital mainly fell due to the phasing in
of adjustments in the CET1 capital. This is shown in the 1-1-2015
column in the table above. The result for 2015 minus coupon
payments on capital instruments was added to the CET1 capital.
The tier 1 instruments issued by Rabobank priorto 2014
do not meet the new requirements in CRD IV. In line with
the regulations, these instruments will gradually count
less and less as capital. In January 2015, a tier 1 issue took
place for an amount of EUR 1.5 billion, which does meet the
requirements of CRD IV. Tier 2 issues improved the capital ratio
even further in July and early August. Due to these issues, the
capital ratio rose by 1.9 percentage points to 23.2% (21.3%).
Bail-in and minimum requirement for own funds and
eligible liabilities (MREL)
The new regulations mean that in the future it will be easier to
shift losses onto the creditors of a bank if the bank in question
gets into difficulties. This process is known as a bail-in of
creditors. Rabobank wishes to mitigate this risk as far as possible
by holding a large buffer of equity and subordinated loan
capital that will be called upon in the first instance. Only after
this will non-subordinated creditors whose claims are not
covered by collateral have to contribute. This so-called bail-in
buffer, according to our definition, consists of retained earnings,
other reserves, Rabobank Certificates, hybrid and subordinated
debt instruments and other debt instruments (the so-called
Senior Contingent Notes).The bail-in buffer increased in 2015
from EUR 51.5 billion to EUR 57.5 billion.This corresponds
to approximately 27% (24%) of the risk-weighted assets.
The increase in this buffer is mainly due to the issuance of tier 1
and tier 2 paper in 2015 and retained earnings.
Structure of capital ratios
Amounts in millions of euros
31-12-2015
1-1-2015
31-12-2014
Retained earnings
25,482
24,528
24,528
Expected dividends
(126)
(119)
(119)
Rabobank Certificates
5,949
5,931
5,931
Non-controlling interests
23
28
28
Reserves
224
365
365
Deductions
(5,539)
(5,248)
(5,248)
Transition guidance
2,741
2,514
3,229
Common equity tier 1 capital
28,754
27,999
28,714
CRD IV-compliant instruments
1,488
Grandfathered instruments
6,373
6,373
7,283
Non-controlling interests
5
6
6
Deductions
(76)
(3)
(3)
Transition guidance
(1,492)
(1,595)
(2,126)
Total additional tier 1 capital
6,298
4,781
5,160
Tier 1 capital
35,052
32,780
33,874
Subordinated debts
15,078
11,738
11,738
Non-controlling interests
6
8
8
Deductions
(85)
Transition guidance
(596)
(361)
(481)
Qualifying capital
49,455
44,165
45,139
Risk-weighted assets
213,092
211,870
211,870
Common equity tier 1 ratio
13.5%
13.2%
13.6%
Tier 1 ratio
16.4%
15.5%
16.0%
Total capital ratio
23.2%
20.8%
21.3%
Equity capital ratio
14.7%
14.4%
14.4%
21 Performance
