Contents Management report Corporate governance Consolidated financial statements Financial statements Pillar 3
operations to provide an optimal customer service, it was
disclosed that FGH Bank would be integrated with Rabobank
as a centre of expertise. The preparations for this process are in
full swing.
The table below provides insight into the commercial real
estate loan portfolio in the Netherlands on 31 December 2015.
The Property Development segment is presented separately.
Rabobank's lending in this segment was relatively low, at
EUR 1.9 (2.3) billion. The commercial real estate portfolio of
Rabobank in the Netherlands declined again in 2015 mainly due
to repayments, foreclosures and write-downs, loan sales and
a lower risk appetite.
Commercial real estate loan portfolio on 31 -12-20151
in millions of euros
Net loan
portfolio
Gross non-
performing
loans2
Loan
impairment
allowances
Loan
impairment
charges
Write-downs
- Property investment domestic retail banking
7,729
1,447
588
(8)
105
- Property investment real estate segment
13,794
3,614
1,040
142
217
Total property investments
21,523
5,061
1,628
134
322
- Property development domestic retail banking
784
495
301
26
83
- Property development of real estate segment
1,101
172
62
5
1
Total property development
1,885
667
363
31
84
Commercial real estate loan portfolio on 31 -12-2014
in millions of euros
Net loan
portfolio
Gross non-
performing
loans2
Loan
impairment
allowances
Loan
impairment
charges
Write-downs
- Property investment domestic retail banking
8,586
1,509
673
249
152
- Property investment real estate segment
15,099
3,394
1,098
544
333
Total property investments
23,685
4,903
1,771
793
485
- Property development domestic retail banking
1,062
586
342
23
26
- Property development of real estate segment
1,211
146
43
8
2
Total property development
2,273
732
385
31
28
In recent years, market developments have led to heavy
pressure on the quality of the portfolio, which is reflected in
the increased level of loan impairment charges. The year 2015
has been characterised by a clear bifurcation of the portfolio.
On the one hand, amongst other things the increased interest
of investors has caused some sub-markets to bottom out or to
1 The table above only concerns identified loan impairment charges
and identified loan impairment allowances.
2 Non-performing loans are identified in accordance with the EBA
definition of'non-performing'. The reporting of these loans is in line
with general practice in the sector and deviates from the impaired
loans that were reported last year.
even show signs of some recovery. The allowances made for this
part of the portfolio proved to be adequate. On the other hand,
structural problems in other sub-markets result in continuing
higher loan impairment charges.
Nearly the entire real estate portfolio outside the Netherlands
is provided by ACC Loan Management. This portfolio is being
gradually scaled down. In 2015, the extra additions to the
loan impairment allowance for this portfolio were limited
(EUR 40 million). Rabobank expects to make a few further
allowances in 2016, albeit at a lower level than in previous years.
Country risk
With respect to country risk, a distinction is made between
collective debtor risk and transfer risk. Collective debtor risk
is the risk that a large number of debtors in a country cannot
91 Risk management