Improving performance
Our output and impact
Wholesale banking and international rural and retail banking
Net profit improved due to continued higher gross results and lower impairments
In 2016, the wholesale banking and international rural and retail banking segment realised a net profit
of EUR 644 million including Group Treasury, compared to a net loss of EUR 333 million in 2015. Higher
income, lower costs and lower impairments were the main drivers for this strong performance. In 2015,
an impairment on goodwill lowered net profit by EUR 612 million. Corrected for these impairments, net
profit still improved in 2016.
WRR income showed an increase compared to last year. Lower interest results from Group Treasury
resulted in lower net interest income. This decrease was partly compensated by an increase in other
income of EUR 444 million, mainly due to higher results at Markets (the competence center for financial
markets products for the Rabobank Group) and as result of the release of fx reserves connected to the
closing of Rabobank's office in Curasao (EUR 55 million). Furthermore, the increase of net result can be
attributed to a significant drop in loan impairment charges in almost all regions.
The loan portfolio of wholesale banking and international rural and retail banking expanded to
EUR 105.2 billion in 2016. The volume of lending to the F&A sector grew, in line with the Banking for
Food strategy, to EUR 63.9 billion. The amounts due to customers decreased by 5% to EUR 123.7 billion.
Global economic recovery in 2016, contributed to a decline in the loan impairment charges from
EUR 526 million to EUR 255 million. This represents 26 basis point of the average loan portfolio and is
well below the long-term average of 59 basis points.
Projects regarding digitalisation and standardisation of services showed significant progress; all aimed
to further reduce complexity and to increase efficiency. Restructuring measures were carried out for
the rural locations in Australia, New Zealand and Chile. Combined with the successful outsourcing
of ACC Loan Management in Ireland,the closing of the Curasao branch and the centralisation of
IT services this resulted in a reduction of 1,771 FTEs in 2016.
Contents Foreword Management report Corporate governance Consolidated Financial Statements Company Financial Statements Pillar 3
Within the segment wholesale banking and international rural and retail banking, the results of Wholesale, Rural Retail and Group
Treasury are presented together.
Profile Dutch and international wholesale banking and
international rural and retail banking
Wholesale, Rural Retail (WRR) has an international network
of branches with offices and subsidiaries in various countries.
For a complete overview of our business banking services, click
here. Rabobank also operates RaboDirect internet savings banks.
The wholesale banking division serves the largest domestic and
international companies (corporates, financial institutions, rural,
traders and private equity). All sectors in the Netherlands are
being serviced, contributing to the 'Banking for the Netherlands'
strategy, while outside the Netherlands we focus on the Food
Agri and trade-related sectors.
Rural banking is focused on offering financial solutions for the
specific needs of leading farmers and their communities in
a selected number of key food agribusiness (F&A) countries.
38 Rabobank Annual Report 2016
