38 Other administrative expenses
39 Depreciation
40 Loan impairment charges
4 7 Regulatory levies
42 Taxes
Contents Management report Corporate governance Consolidated financial statements Financial statements Pillar 3
The value of a DRN is linked directly to the price of a Rabobank
Certificate. The estimated payments to be made for the variable
remuneration are shown in the following table.
On 31 December 2015 Year of payment
in millions of euros 2016 2017 2018 2019 2020 Total
Variable remuneration, excluding DRNs 90.7 6.2 7.0 7.0 - 110.9
DRNs 11.5 7.8 4.5 3.8 3.7 31.3
Total 102.2 14.0 11.5 10.8 3.7 142.2
On 31 December 2014 Yearofpayment
in millions of euros 2015 2016 2017 2018 2019 Total
Variable remuneration, excluding DRNs 101.5 6.8 6.2 7.5 - 122.0
DRNs 3.6 12.0 4.4 4.2 5.3 29.5
Total 105.1 18.8 10.6 11.7 5.3 151.5
Other administrative expenses increased by 15% to
EUR 2,916 million (2014: 2,532). Domestic retail banking saw
an increase in other administrative expenses due to higher
contributions to provisions for reorganisation and legal costs.
In 2014, other administrative expenses fell by EUR 193 million
due to the partial release of a provision previously created for
DSB Bank.The remaining EUR 30 million ofthis provision was
released in 2015.
in millions of euros 2015 2014
Depreciation of property and equipment 250 240
Depreciation of intangible assets 193 197
Total depreciation 443 437
in millions of euros 2015 2014
Loans and advances to banks (10) (14)
Loans and advances to customers 1,134 2,762
Recoveries following write-downs (101(130)
Credit related liabilities 57 2
Other assets (47) 13
Total loan impairment charges 1,033 2,633
The regulatory levies consist of bank tax and levy, contributions
to the national resolution fund and the resolution levy.
Banks operating in the Netherlands on 1 October of the year
under review are required to pay banktax.There are two rates of
banktax: A rate of 0.044% for current liabilities and a rate of 0.022%
for long-term liabilities, based on the balance on December 2014.
In 2015, Rabobank Group was charged a total of 168 (2014:167).
In 2015, the bank levy in Ireland amounted to 4. In 2015, the
contribution to the National Resolution Fund amounted to
172 (2014:0).The resolution levy, a one-off levy imposed by the
Dutch government on the Dutch banking industry in connection
with the nationalisation of SNS Reaal, totalled 321 in 2014.
in millions of euros 2015 2014
Current income tax
Reporting period 555 79
Previous years (21) (96)
Deferred tax 121 (144)
Total taxes 655 (161)
The tax on the operating profit of Rabobank differs as follows
from the nominal amount based on the Dutch corporate
tax rate:
in millions of euros 2015 2014
Operating profit before taxation 2,869 1,681
Tax exempt income (419) (247)
Non-deductible expenses 239 599
Tax losses not recognised in previous years (15) (2)
Other (288) (753)
2,386 1,278
Tax calculated on a tax rate of 25.0% (2014:25.0%) 597 320
Effect of different tax rates and other non
recurring tax gains or losses 58 (481)
Corporate taxes 655 (161)
238 Rabobank Annual Report 2015
