13 Investments in associates and
joint ventures
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12 Available-for-sale financial assets
Contents Foreword Management report Corporate governance Consolidated Financial Statements Company Financial Statements Pillar 3
Finance leases
Loans and advances to customers also includes receivables
from finance leases, which can be broken down as follows:
On 31 December 2016, the loan impairment allowance for
finance leases amounted to 225 (2015: 287). The unguaranteed
residual values accruing to the lessor amounted to
1,884 (2015: 1,705). The contingent lease payments recognised
as income in 2016 were nil (2015: nil).
The finance leases mainly relate to the lease of equipment and
cars, as well as factoring products.
The changes in available-for-sale financial assets can be broken
down as follows:
The carrying amount of the investments in associates and joint
ventures is 2,417 (2015: 3,672).
in millions of euros
2016
2015
Opening balance
3,672
3,807
Foreign exchange differences
3
(33)
Purchases
75
37
Sales
(350)
(44)
Share of profit of associates
44
351
Dividends paid out (and capital repayments)
(101)
(384)
Transferred to held for sale
(187)
Revaluation
27
(76)
Impairment
(700)
Other
(66)
14
Total investments in associates and joint
ventures
2,417
3,672
in millions of euros
2016
2015
Receivables from gross investment in finance
leases
Not exceeding 1 year
7,561
8,872
Longer than 1 year but less than 5 years
13,773
18,775
Longer than 5 years
653
1,183
Total receivables from gross investment in
finance leases
21,987
28,830
Unearned deferred finance income from finance
leases
1,944
2,967
Net investment in finance leases
20,043
25,863
Not exceeding 1 year
7,321
8,575
Longer than 1 year but less than 5 years
12,180
16,443
Longer than 5 years
542
845
Net investment in finance leases
20,043
25,863
in millions of euros
2016
2015
Opening balance
37,773
39,770
Foreign exchange differences
395
703
Additions
5,371
6,219
Disposals (sale and repayment)
(8,768)
(8,431)
Fair value changes
(155)
(335)
Other changes
(36)
(153)
Closing balance
34,580
37,773
in millions of euros
2016
2015
Short-term government papers
1,602
1,191
Government bonds
27,010
30,053
Other debt securities
5,133
5,594
Equity instruments
835
935
Total available-for-sale financial assets
34,580
37,773
13.1 Investments in associates
The main associate in terms of the size of the capital interest
held by Rabobank is:
On 31 December2016 Shareholding Voting rights
The Netherlands
Achmea B.V. 29% 29%
The impairment of available-for-sale financial assets amounted
to 0 (2015: 160) and is recognised in the income statement
under 'Gains/ (losses) on financial assets and liabilities at fair
value through profit or loss'.
Achmea is a strategic partner of Rabobank for insurance products
and Interpolis, a subsidiary of the Achmea Group, works closely
with the local Rabobanks. Achmea's head office is located in
Zeist, the Netherlands. No listed market price is available for the
interest in Achmea. The interest in Achmea is valued according
to the equity method. In 2016, Rabobank received dividend from
Achmea for an amount of 43 (2015: nil).
The outlook for the future profitability of Achmea deteriorated
during 2016, taken into account the recent developments in
the health insurance market and the financial results over the
first half year of 2016. These elements, in combination with the
deteriorating business environment of Dutch insurers over the last
years, gave triggers of potential impairments for the investment
in Achmea. The test to establish whether these potential
in millions of euros
2016
2015
Gains/(losses) on available-for-sale financial
assets
87
148
218 Rabobank Annual Report 2016