48 Joint ventures
49 Transfer of financial assets and
financial assets provided as collateral
Management report
Corporate governance
Consolidated financial statements
Financial statements
All subsidiaries listed in the table are consolidated. In 2015,
none of the subsidiaries experienced any significant restrictions
in the payment of dividends or the redemption of loans and
repayment of advances. The option of subsidiaries to pay
dividend to Rabobank depends on various factors, including
local regulatory requirements, statutory reserves and financial
performance.
Rabobank will not consolidate several structured entities
in the 'Wholesale banking and international retail banking
businessleven if it does retain more than half of the voting
rights.These structured entities are not consolidated because
the relevant activities are managed by a third party subject to
a contract.
Rabobank does have control over several entities in the
segment 'Leasing' as part of its vendor leasing operations, even
though it retains less than half of the voting rights because
control is not determined based on such rights, but rather on
management participation.
Virtually all joint ventures are entities of Rabo Real Estate Group.
Their total carrying amount is -39 (2014: -23) and are valued in
accordance with the equity method.
Rabo Real Estate Group often puts partnerships in place for the
development of integrated residential areas, commercial real
estate and the implementation of fund and asset management
activities. In the majority of cases, each participating member
of the partnership has a decisive vote, and decisions can only
be passed by consensus. The majority of these partnerships
therefore qualify as 'joint arrangements'.
Each partnership has its own legal structure depending on the
needs and requirements of the
parties concerned.The legal form (business structure) typically
used is the Dutch 'CV-BV'structure (a limited partnership-
private limited liability company) or the 'VOF' structure (general
partnership) or a derivative thereof or related structure. In the
case of CV-BVs, the risk of
a participating party is generally limited to the issued capital
and the partners are only entitled to the net assets from the
entity. In the case of general partnerships ('VOF'), each party
bears, in principle, unlimited liability and
has, in principle, a proportional right to the assets, having
cognisance in the obligations forthe liabilities of the entity.
On the basis of the legal form, a CV-BV structure qualifies as
a 'joint venture', whereas a VOF structure qualifies as a 'joint
operation'. It is important to note that the contractual terms and
other relevant facts and circumstances may result in a different
conclusion.
Since a separate legal structure is established for each
partnership in which the participating partners change and
separate projects are not of a substantial size, Rabo Real Estate
Group did not maintain any material joint arrangements in 2014
and 2015.
Result from joint ventures
2015
2014
Profit or loss from continuing operations
(5)
(39)
Post-tax profit or loss from discontinued operations
Net profit
(5)
(39)
Other comprehensive income
Total comprehensive income
(5)
(39)
Contingent assets and liabilities
Rabo Real Estate Group entered into the following
commitments:
with regard to real estate projects, on 31 December 2015,
commitments with third parties (including subcontractors
and architects) have been entered into to the amount of
17 (2014: 7).
with regard to commercial real estate projects, no
commitments with subcontractors and architects have been
entered into (2014: 29).
The principle joint ventures in terms of the size of the capital
interest held by Rabobank include:
On 31 December 2015
Share
Voting rights
The Netherlands
Real estate development company De Westlandse
Zoom CV, Monster
25%
25%
Real estate development company Waalfront CV,
Nijmegen
50%
50%
FIRST Rotterdam CV, Rotterdam
50%
50%
Reverse repurchase transactions and securities
borrowing agreements
Reverse repurchase transactions and securities borrowing
agreements concluded by Rabobank are included under 'Loans
and advances to banks'or'Loans and advances to customers'
and as per 31 December amount to:
in millions of euros
2015
2014
Loans and advances to banks
17,271
27,592
Loans and advances to customers
20,151
18,295
Total reverse repurchase transactions and
securities borrowing agreements
37,422
45,887
242 Rabobank Annual Report 2015
