Contents Management report Corporate governance Consolidated financial statements Financial statements Pillar 3
The collective allowance is determined for impaired loans
which individually are not significant, i.e. primarily loans to
private individuals and small businesses.The allowance is set
at portfolio level, using CRD IV model parameters adjusted to
IFRS guidelines.
The general allowance is determined for the portion of
the portfolio that is actually impaired in the reporting period
but has not yet been identified as such (IBNR: incurred but
not reported). This allowance is determined because there is
always a mismatch between an event causing a customer's
default and the time that the bank identifies this default
as such and records it in its systems. Also in this case, CRD
IV parameters are used (adjusted to IFRS guidelines) to
determine the amount of the allowance.
Over and above these allowances, additional coverage is raised
through collateral and other securities. Rabobank applies the
one-obligor principle, which means that the exposure to the
debtor and all relater counterparties is included. Furthermore,
the full exposure on the client is then considered as impaired;
therefore also for the part for which there is adequate coverage
in the form of collateral, where the risk of a loss is obviously
lower.
In 2015, the loan impairment charges were at a considerably
lower level compared to 2014, in particular for the Dutch
portfolio. The most important reason for this was the economic
recovery resulting in few new defaults, the recovery of existing
defaults or the foreclosures at better than anticipated collateral
values, and adequate existing allowances.
Expressed as basis points of the average private sector loan
portfolio, this stood at 16 in the first half of the year and at 32
in the second half of the year. The ten-year average (period
2005-2014) for loan impairment charges is 36 basis points.
Loan impairment charges and loan impairment allowance
2015
2014
Loan
impairment
in millions of euros charges
Loan impairment
charges
(in basis points)
Allowance
Loan
impairment
charges
Loan impairment
charges
(in basis points)
Allowance
Domestic retail banking 343
12
3,963
1,422
48
4,836
Wholesale banking and international retail banking 526
53
2,962
420
44
2,881
Leasing 85
25
344
131
43
403
Real estate 90
56
1,175
656
364
1,270
Other (11)
n/a
34
4
n/a
48
Rabobank Group 1,033
24
8,478
2,633
60
9,438
Development of loan impairment allowance
in millions of euros
Allowance
Write
down
Net
increase
Other
Allowance
Received after
write-down
Loan
impairment
charges
31-12-2014
2015
2015
2015
31-12-2015
2015
2015
(D
(III)
(IV)
(V)
(VI)
(VII)
(VIIHV+VII)
9,438
(2,307)
1,134
213
8,478
(101)
1,033
89 Risk management
