Contents Foreword Management report Corporate governance Consolidated Financial Statements Company Financial Statements Pillar 3
Amounts due to customers
Amounts in billions of euros
31-12-2016
31-12-2015
(adjusted for
cash pooling)
31-12-2015
(as reported)
Private savings
142.2
140.5
140.5
at domestic retail banking
116.2
117.0
117.0
at wholesale banking and international rural and retail
banking
26.0
23.5
23.5
Other amounts due to customers
205.5
197.1
205.4
at domestic retail banking
107.1
95.4
98.2
at wholesale banking and international rural and retail
banking
97.7
100.9
106.4
at other group entities
0.7
0.8
0.8
Total amounts due to customers
347.7
337.6
345.9
Equity
in billions of euros
50
31-12 31-12 31-12 31-12
2013 2014 2015 2016
V
H Other non-controlling interests
H Hybrid capital
H Rabobank Certificates
H Retained earnings and reserves
Breakdown of equity
at year-end 2016, in billions of euros
V
H Retained earnings and reserves 25.8
H Capital Securities 7.8
H Rabobank Certificates 5.9
Trust Preferred Securities 0.4
Other non-controlling interests 0.5
Decrease of equity
In 2016, Rabobank Group's equity decreased to EUR 40,524 (41,197) million. In July 2016,
Rabobank redeemed USD 2 billion capital securities. In October 2016, Rabobank also
redeemed EUR 1.5 billion Trust Preferred Securities. Because a large part of these Trust
Preferred Securities were already bought back previously, this redemption resulted in
a drop of equity of only EUR 716 million. The additional tier 1 issue of EUR 1.25 billion
in April 2016 and retention of the profit for the year (after deduction of payments
on Rabobank Certificates and hybrid capital instruments) of EUR 0.7 billion had
an upward impact on equity. Rabobank Group's equity consisted of 64% (62%) retained
earnings and reserves, 15% (15%) Rabobank Certificates, 20% (22%) hybrid capital and
subordinated capital instruments, and 1% (1%) other non-controlling interests.
Development of equity
Amounts in millions of euros
Equity at the end of December 2015
41,197
Comprehensive income
1,870
Payments on certificates and hybrid capital
(1,278)
Issue of additional tier 1 capital
1,250
Call of Capital Securities
(1,753)
Redemption of Trust Preferred Securities
(716)
Other
(46)
Equity at the end of December 2016
40,524
Negative interest rate on ECB deposit facility
In March 2016, the Governing Council of the ECB decided to further decrease the
interest rate on its deposit facility. The monetary policymakers in the eurozone reduced
the rate that had been effective since 9 December 2015 by a further 0.1 percentage
point, taking the interest rate to -0.40%. The negative deposit rate implies that banks
have to pay interest if they hold surplus funds overnight at the ECB.
The negative deposit interest rate also causes negative rates for Eonia and Euribor.
Since the interest rate on some Rabobank products is linked to Eonia and Euribor,
some groups of customers do not receive any interest and instead have to pay interest
on any credit balances they hold at the bank. These groups consist of a relatively small
number of clients - primarily financial institutions and large corporate organisations -
that hold surplus funds at Rabobank for a short period.
28 Rabobank Annual Report 2016
