Financial results of Rabobank
Contents Foreword Management report Corporate governance
Provision for the SME interest rate derivatives
recovery framework
In March 2016 the Dutch Minister of Finance Dijsselbloem
appointed a committee of independent experts to write
a recovery framework defining new rules for the way banks
should conduct the reassessment of interest rate derivatives
files for SME clients. Independent external evaluators will ensure
the proper application of the recovery framework. Rabobank
supports the Minister's actions.
On 7 July 2016 Rabobank announced its decision to join the
Dutch Derivatives Committee recovery framework. The decision
was informed by our wish to take responsibility and participate
in finding an accurate solution to the derivatives recovery,
and by our awareness of the extent of public support for
the framework.
Rabobank's decision to take part in the recovery framework,
announced on 7 July 2016, led us to make an additional
provision of EUR 514 million in our 2016 figures.
On 31 December 2016, the total provision for the SME
interest rate derivatives recovery framework amounted to
EUR 665 million. The main uncertainties in the calculations of
the provision stem from assumptions regarding the scoping
of clients. Furthermore, the calculations regarding technical
recovery are based on a portfolio approach instead of individual
contract calculations. More information on the interest rate
derivatives recovery framework can be found in the chapter
Restoring trust.
Consolidated Financial Statements Company Financial Statements Pillar 3
Results
in millions of euros
2016
2015
Change
Net interest income
8,743
9,139
-4%
Net fee and commission income
1,918
1,892
1%
Other income
2,144
1,983
8%
Total income
12,805
13,014
-2%
Staff costs
4,521
4,786
-6%
Other administrative expenses
3,635
2,916
25%
Depreciation
438
443
-1%
Total operating expenses
8,594
8,145
6%
Gross result
4,211
4,869
-14%
Impairment losses on goodwill and
investments in associates
700
623
12%
Loan impairment charges
310
1,033
-70%
Contribution to resolution fund and DGS
313
172
82%
Bank tax and levy
170
172
-1%
Operating profit before tax
2,718
2,869
-5%
Income tax
694
655
6%
Net profit
2,024
2,214
-9%
Loan impairment charges
(in basis points)
7
24
-71%
Ratios
Cost/income ratio
exclusive regulatory levies
67.1%
62.6%
Cost/income ratio
inclusive regulatory levies
70.9%
65.2%
Return on tier 1 capital
5.8%
6.5%
ROIC
5.2%
6.0%
Balance sheet (in EUR billion)
31-12-2016
31-12-2015
Total assets
662.6
678.8
-2%
Private sector loan portfolio
424.6
433.9
-2%
Due to customers
347.7
345.9
1%
Number of internal employees (in FTEs)
40,029
45,658
-12%
Number of external employees (in FTEs)
5,538
6,355
-13%
Total number of employees (in FTEs)
45,567
52,013
-12%
29
Our output and impact: improving performance
