Contents Management report Corporate governance Consolidated financial statements Financial statements Pillar 3
Rabobank Group's ratios
in millions of euros 2015 2014
Retained earnings 25,482 24,528
Expected dividends (126) (119)
Rabobank Certificates 5,949 5,931
Part of non-controlling interests treated as
qualifying capital 23 28
Reserves 224 365
Deductions (5,539) (5,248)
Transition guidance 2,741 3,229
Common Equity Tier 1-capital 28,754 28,714
Capital Securities 1,488
Grandfathered instruments 6,373 7,283
Non-controlling interests 5 6
Deductions (76) (3)
Transition guidance (1,492) (2,126)
Tier 1 capital 35,052 33,874
Part of subordinated liabilities treated as
qualifying capital 15,078 11,738
Non-controlling interests 6 8
Deductions (85)
Transition guidance (596) (481)
Qualifying capital 49,455 45,139
Risk-weighted assets 213,092 211,870
Common Equity Tier 1 ratio 13.5% 13.6%
Tier 1 ratio 16.4% 16.0%
Total capital ratio 23.2% 21.3%
Equity capital ratio 14.7% 14.4%
Effective 1 January 2014, the minimum required percentages
are determined on the basis of CRD IV/CRR. For 2015, the
qualifying capital, tier 1 capital and core capital remain subject
to the minimum of 8%, 6% and 4.5% respectively.The legal
buffers below are applicable as from 2016.These buffers will
gradually increase until the year 2019. Rabobank is already
allowing for these changes in its capital planning.The table
below shows the minimum legal buffers based on the planned
final situation under CRD IV/CRR.
Minimum capital buffer
CET1
Tier 1
Total
capital
Minimum
2015
4.5%
6.0%
8.0%
Capital conservation buffer1
2016-2019
2.5%
2.5%
2.5%
Minimum capital
conservation buffer
7.0%
8.5%
10.5%
Countercyclical buffer1
2016-2019
0% - 2.5°/
6
Systemic risk buffer1
2016-2019
3.0%
3.0%
3.0%
The determination of the risk-weighted assets is based on
separate methods for credit risk, operational risk and market
risk.The risk-weighted assets are determined for credit risk
purposes in many different ways. For most assets the risk weight
is determined with reference to internal ratings and a number
of characteristics specific to the asset concerned. For off-
balance sheet items the balance sheet equivalent is calculated
first on the basis of internal conversion factors. The resulting
equivalent amounts are then also assigned risk-weightings.
An Advanced Measurement Approach model is used to
determine the amount with respect to the risk-weighted assets
for operational risk. With the market risk approach, the general
market risk is hedged, as well as the risk of open positions in
foreign currencies, debt and equity instruments, as well as
commodities. In the ratio's listed below account has been taken
of the transitional CRR provisions.
1 These buffers will phase in during the years 2016-2019.
The countercyclical buffer is capped at a maximum of 2.5%.
In most countries, including the Netherlands, the countercyclical
buffer for 2016 has been set at 0%.
The deductions consist mostly of goodwill, other intangible
fixed assets, deferred tax liabilities which depend on future
profit, the IRB shortfall for credit risk adjustments and
adjustments relating to cumulative profits due to changes
in the bank's credit risk on instruments issued at market
value (FVPL). In accordance with CRR, a number of deductions
are adjusted in the 'Transition guidance', as these adjustments
are set to be phased in after five years for the period 2014-2018.
The 'Transition guidance' consists mainly of goodwill, other
intangible non-current assets, deferred tax liabilities depending
on future profits (i.e. non-temporary differences) and the IRB
shortfall for credit risk adjustments.
The additional tier 1 instruments issued by Rabobank prior to
2015 do not comply with the new CRR requirements.They will
need 'grandfathering'.This means that these instruments will be
phased out from the definition of solvency ratios, in line with
the statutory requirements.
269 Notes to the financial statements of Rabobank
