Contents
Foreword
Management report
Corporate governance
Consolidated Financial Statements
Company Financial Statements
Pillar 3
Domestic retail banking
In the Netherlands, Rabobank is a leading player in providing loans in the residential
mortgage market, as well as in the savings, payments, investment and insurance
markets. It is also an important financial services provider for the SME segment, the
F&A industry, and the corporate segment. At the end of 2016, the local Rabobanks
had 475 (506) branches and 2,141 (2,206) ATMs. They offer a comprehensive range
of financial services to approximately 6.5 (6.5) million private customers and
approximately 800,000 (800,000) business clients in the Netherlands. The domestic
retail banking business employs 17,455 (24,341) employees (in FTEs in total - including
mortgage lender Obvion as a Rabobank subsidiary), or 16,100 internal and 1,355
external employees. The subsidiary Obvion employs 559 (480) FTEs, or 402 internal and
157 external employees and has a loan portfolio of EUR 28.0 (29.5) billion.
Loan portfolio by sector
in billions of euros
31-12
31-12
2014
31-12
2015
31-12
2016
Food and agri
TIS
Private individuals
Loan portfolio shrank by 3%
In March 2016, Rabobank sold a share of its mortgage loan portfolio worth
EUR 1 billion to insurance company VIVAT Verzekeringen (read more about this sale
here). In July 2016, Rabobank sold another share worth EUR 500 million to Delta
Lloyd (read more about this sale here). Also in July 2016, Obvion sold a share of
its mortgage loan portfiolio worth EUR 340 million to BinckBank and securitised
EUR 1 billion of its mortgage portfolio, all of which contributed to the decrease
in the mortgage loan portfolio. In 2016, customers' extra mortgage repayments
- all payments on top of the mandatory repayments, including repayment of the
full mortgage - totalled approximately EUR 15.0 (12.9) billion at local Rabobanks.
On 31 December 2016, the total volume of Rabobank's residential mortgage loan
portfolio was EUR 195.9 (201.5) billion. The loan portfolio of Obvion of EUR 28.0 (29.5)
billion is part of the residential mortgage loan portfolio.
The volume of the domestic retail banking loan portfolio at year-end 2015 was
restated and increased by EUR 2.6 billion as a result of a change in accounting
principles related to the netting of cash pools. The total domestic retail banking
loan portfolio fell by EUR 8.7 billion to EUR 275.8 (284.5) billion. When excluded
for the change in accounting principles, the loan portfolio fell by EUR 6.1 billion.
Lending to private individuals (consisting almost entirely of residential mortgage
loans) fell by EUR 5.8 billion to EUR 196.9 (202.7) billion. Loans to the TIS sectors
remained EUR 51.1 (51.1) billion, and loans to the food agri sector went down 1%
toEUR 27.8 (28.2) billion.
Share of mortgage market
in
31-12
31-12
2014
31-12
2015
31-12
2016
Residential mortgage loans
The housing market
The recovery of the Dutch housing market continued in 2016, as both the House Price
Index and the number of residential property transactions rose compared to 2015.
The positive development is mainly the result of high consumer confidence, historically
low interest rates and economic recovery. Mortgage interest rates are expected to
remain low for the time being. During the past year, most home buyers chose fixed-rate
mortgages with longer terms. Although negative equity and tightening lending criteria
have tempered market growth, more and more underwater mortgages are moving into
positive equity. Read more information on the RaboResearch website.
34 Rabobank Annual Report 2016
