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Contents Management report Corporate governance Consolidated financial statements Financial statements Pillar 3
Forbearance
The identification of forbearance measures for the corporate
portfolio is performed based on the current Loan Quality
Classification framework. Forbearance measures only apply
to the classified portfolio. If forbearance measures are applied
to a debtor, the debtor will by definition be dealt with by the
Special Asset Management department. In addition, all debtors
in the retail portfolio to whom forbearance measures are applied
must be included in the Special Asset Management portfolio.
Lastly, items in the forbearance category must be reported
for up to two years after recovery. This period of two years is
referred to as the 'probation period'.
On 31 December 2015, the value of non-performing loans
were EUR 19,503 (21,250) million. This represents a coverage of
43.5% (44.4%) if the allowance is related to the non-performing
loans. On 31 December 2015, the non-performing loans as
a percentage of the private loan portfolio stood at 4.6% (4.9%).
Developments in the real estate portfolio
Rabobank's commercial real estate portfolio in the Netherlands
is managed by FGH Bank and the local Rabobanks.
The commercial real estate market showed some signs of
recovery in 2015. The demand of real estate end users for offices
and business premises increased slightly, although this demand
remains low from a historical perspective. The supply of vacant
buildings is decreasing, both for offices and retail premises.
This is not the result of an increased growth in demand, but
extra initiatives to convert vacant buildings in combination with
low levels of new housing development. However, rental prices
are still under pressure in areas outside core locations in large
cities.This has led to an increasingly visible distinction between
properties with little, or no prospect of viability and those with
a chance of succes. Long term trends such as demographic
ageing, the 'New Way of Working'and online shopping are
all important factors in this development. The pressure on
retail property will continue for the coming years, in particular
causing difficulties for mid-market retail chains.This is in
contrast to the positive demand on the investment side, in
which there is significant activity from both domestic and
international investors. Low interest rates and limited returns
on other investment segments are stimulating investments
in real estate. All real estate segments are in demand among
investors. Under the current market conditions, the quality of
the commercial real estate loan portfolio is showing signs of
stabilisation, especially in the second half of the year, whereby
the aforementioned distinction in the market shows differences
at sub-sector level.
Within Rabobank Group, management of the commercial
real estate portfolio in the Netherlands has been intensified
for several years now and and steps have already been
taken in recent years to tighten the financing, revision and
valuation policy. At the beginning of 2015, in the context of
One Rabobank, a vision in which Rabobank will combine its
Forborne assets on 31-
12-2015
Of which (a):
Of which (a):
Loan
instruments
instruments
impairment
Forborne
with
Non-
with
allowance
assets (gross
Performing
modifications
performing
modifications
on non-
Private sector
carrying
forborne
in the terms
Of which (b):
forborne
in the terms
Of which (b):
performing
in millions of euros
loan portfolio
value)
assets
and conditions
refinancing
assets
and conditions
refinancing
forborne assets
Domestic retail banking
281,941
7,773
3,586
3,290
296
4,187
3,796
391
1,592
Wholesale banking and
international retail banking
98,798
4,138
1,121
706
415
3,018
2,414
603
1,171
Leasing
29,656
211
50
39
11
161
117
44
44
Real estate
15,287
2,358
138
138
2,219
2,162
58
765
Other
475
Rabobank Group
426,157
14,480
4,895
4,173
722
9,585
8,489
1,096
3,572
Non-performing loans
in millions of euros
31-12-2015
31-12-2014
Domestic retail banking
9,166
10,492
Wholesale banking and international
retail banking
5,644
6,437
Leasing
681
576
Real estate
4,012
3,745
Rabobank Group
19,503
21,250
90 Rabobank Annual Report 2015
