Contents Foreword Management report Corporate governance
Consolidated Financial Statements
Company Financial Statements
Pillar 3
Market share
Rabobank Group's share of the Dutch mortgage market
amounted to 20.5% (19.7%) of new mortgage production in
2016 (source: Dutch Land Registry Office (Kadaster)). The market
share of the local Rabobanks rose to 17.3% (15.5%), whereas the
market share of Obvion fell to 3.2% (4.2%). The increase of the
market share of the local Rabobanks can be partly explained by
the positive results of the 'Mortgage within a week' campaign
which was launched during 2016. More information about this
campaign can be found here.
Mortgage loan portfolio
The quality of Rabobank's residential mortgage loan portfolio
is seeing further improvement as a result of the recovery
of the Dutch economy and the growing confidence in the
housing market. In 2016, financing through the National
Mortgage Guarantee (Nationale Hypotheek Garantie, NHG)
remained relatively stable at 21% of the mortgage loan
portfolio. Customers with 100% interest-only loans declined to
23.1% (23.9%) of the portfolio. The weighted average indexed
loan-to-value (LTV) of the mortgage loan portfolio improved
to 69% (73%), mainly due to an increase in the average price of
existing private homes. Approximately 8% (13%) of the mortgage
portfolio, excluding NHG financing, has a LTV in excess of 100%.
Loan impairment charges and write-offs
Loan impairment charges in connection with residential
mortgage loans amounted to EUR 9 million (0.5 basis points)
in 2016, which was considerably lower than in 2015. For the
most part, this was due to non-recurring adjustments1 in 2015,
which had an upward effect on the loan impairment charges.
Improved asset quality also contributed to this favourable
development, as shown by the positive development of the
more-than-90-days arrears ratio.
Residential mortgage loans
Amounts in millions of euros
31-12-2016
31-12-2015
Mortgage portfolio
195,909
201,498
Weighted-average LTV
69%
73%
Non-performing loans (amount)
1,526
1,837
Non-performing loans (in of total mortgage
loan portfolio)
0.78%
0.91%
More than 90 days arrears
0.48%
0.57%
Share NHG portfolio
20.6%
20.9%
Share customers with fully interest-only
mortgage
23.1%
23.9%
Loan impairment allowances
227
319
Coverage ratio based on non-performing loans
15%
17%
Loan impairment charges
9
286
Loan impairment charges (in basis points,
including non-recurring effects)
0.5
14.1
Loan impairment charges (in basis points,
excluding non-recurring effects)
2.7
7.5
Write-offs
119
156
Interest rate averaging for mortgage customers
As of 1 July 2016, customers wishing to profit from the lower
mortgage rate can apply for interest rate averaging. To that
end, the current interest rate and the remaining term of the
customer's current interest rate contract are averaged with the
prevailing fixed-interest rate and the tenor of the fixing they
select. This service is intended mainly for customers who do not
have sufficient funds to pay penalty interest on the refinancing
of their loan in a single payment. Read more about interest rate
averaging on Rabobank.nl.
Trade, industry and services
Rabobank Group's market share of lending to the TIS sectors
amounted to 41.3% (42.3%) in 2016 (measured by Rabobank's
own surveys). Domestic retail banking loans to these sectors
remained stable at EUR 51.1 (51.1) billion in 2016. The reduction
of the commercial real estate loan portfolio influenced the
1 Two non-recurring adjustments affected
the loan impairment charges and the
allowances for residential mortgage loans
in 2015. Rabobank developed a new capital
model for residential mortgage loans; this
model is also used to define the level of
allowances. In addition, Rabobank decided
to cease allocating loan impairment charges
on residential mortgage loans granted to
entrepreneurs, acting in a private capacity,
to business lending. As of 2015, these have
been fully accounted for as part of the
private individuals' mortgage loan portfolio.
These changes resulted in EUR 161 million of
additional loan impairment charges in 2015.
Market share TIS
in
45
31-12 31-12 31-12 31-12
2013 2014 2015 2016
Market share savings
in
50
45
40
31-12 31-12 31-12 31-12
2013 2014 2015 2016
35 Our output and impact: improving performance
