Financial results of domestic retail banking
Contents Foreword Management report Corporate governance
Consolidated Financial Statements
Company Financial Statements
Pillar 3
development of the portfolio. See the Pillar 3 section for
a further explanation of the developments in this portfolio.
Food agri
Domestic retail banking loans to the food agri sector
amounted to EUR 27.8 (28.2) billion at the end of 2016.
This sector accounts for 10% (10%) of the total loan portfolio
of the domestic retail banking business. Rabobank has had
a stable market share in the Dutch food agri sector of around
85% for decades and is indisputably the most important
financier in this sector. Rabobank has acquired this position
as a result of its agricultural roots and years of accumulated
sector knowledge.
Amounts due to customers increased by EUR 8.1 billion
The private savings market in the Netherlands grew 1% to
EUR 339.8 (336.2) billion in 2016. Rabobank Group's market
share was 33.8% (34.8%) (source: Statistics Netherlands (Centraal
Bureau voor de Statistiek)), of which local Rabobanks accounted
for 33.0% (34.0%) and savings bank Roparco for 0.8% (0.8%).
The amounts due to customers at year-end 2015 was restated
and as a result increased by EUR 2.8 billion as a result of a change
in accounting principles related to the netting of cash pools.
Amounts due to customers - mainly from private savings -
rose 4% to EUR 223.3 (215.2) billion. When excluded for the
change in accounting principles, the amounts due to customers
increased by EUR 10.9 billion. Private savings held at the local
Rabobanks were flat. Private savings for domestic retail banking
as a whole decreased EUR 0.8 billion to EUR 116.2 (117.0) billion
partly due to the increase of additional mortgage repayments.
Other amounts due to customers rose due to an increase in
current accounts held by business clients.
Insurance
Rabobank offers retail and business customers a complete
range of advisory services and product solutions, including
insurance. For insurance products, Achmea (via its Interpolis
brand) is Rabobank's most important strategic partner and
supplier. Interpolis is Rabobank's preferred supplier for the
retail market and offers a wide range of non-life, healthcare and
life insurance policies for both private clients and businesses.
In 2016, both the number of insurance customers and the
number of insurance contracts fell by 3% and the total
insurance income decreased by 2% to EUR 259 (265) million.
This can be partly attributed to a large decline in third party
policies which is in line with the policy of Rabobank.
Type of insurance product
Number of policies
31-12-2016
31-12-2015
Alles in één Polis
1,218,000
1,245,000
ZekerVanJeZaak en Bedrijven Compact Polis
181,000
179,000
ZorgActief
218,000
217,000
Results
Amounts in millions of euros
2016
2015
Change
Net interest income
5,467
5,661
-3%
Net fee and commission income
1,334
1,321
1%
Other income
58
18
222%
Total income
6,859
7,000
-2%
Staff costs
1,798
2,134
-16%
Other administrative expenses
3,113
2,470
26%
Depreciation
117
116
1%
Total operating expenses
5,028
4,720
7%
Gross result
1,831
2,280
-20%
Loan impairment charges
25
343
-93%
Contribution to resolution fund and DGS
190
89
113%
Bank tax and levy
89
82
9%
Operating profit before tax
1,527
1,766
-14%
Income tax
400
445
-10%
Net profit
1,127
1,321
-15%
Loan impairment charges
(in basis points)
1
12
-92%
Ratios
Cost/income ratio
exclusive regulatory levies
73.3%
67.4%
Cost/income ratio
inclusive regulatory levies
77.4%
69.9%
Balance sheet (in EUR billion)
31-12-2016
31-12-2015
Total assets
315.5
325.2
-3%
Private sector loan portfolio
275.8
284.5
-3%
Due to customers
223.3
215.2
4%
Number of internal employees (in FTEs)
16,100
22,176
-27%
Number of external employees (in FTEs)
1,355
2,165
-37%
Total number of employees (in FTEs)
17,455
24,341
-28%
36 Rabobank Annual Report 2016
