Financial results of wholesale banking and
international rural and retail banking
Contents Foreword Management report Corporate governance Consolidated Financial Statements Company Financial Statements Pillar 3
Rabobank operates international retail banking activities
through subsidiaries in three countries: in the United States,
Rabobank is active through Rabobank N.A. (RNA); in Ireland,
through ACC Loan Management, and in Indonesia, through
Rabobank Indonesia. RNA's portfolio increased to EUR 9.6 (9.2)
billion. ACC Loan Management is being phased out and at
year-end 2016, their loan portfolio amounted to EUR 1.3 (1.4)
billion. As of 1 March 2016, Capita Asset Services took over
the day-to-day management of all ACC Loan Management
customer accounts and loan facilities. This was accompanied by
a transfer of personnel from ACC Loan Management to Capita
Asset Services.
Amounts due to customers decreased by 5%
Amounts due to customers from WRR decreased to
EUR 123.7 (129.8) billion at year-end 2016. It should be noted
that amounts due to customers at year-end 2015 was restated
from EUR 124.4 billion to EUR 129.8 billion as a result of
a change in accounting principles related to the netting of
cash pools. When excluding for this accounting effect amounts
due to customers remained almost stable compared to 2015.
Amounts due to customers include private savings from online
bank RaboDirect as well as other amounts due to customers.
RaboDirect is Rabobank's online bank active in Belgium,
Germany, Ireland, Australia and New Zealand. Private savings
entrusted by customers to RaboDirect are used for funding
the international rural and retail banking business and
other divisions of Rabobank Group. The savings balances
of RaboDirect, which are part of the total amount due to
customers, showed a modest increase to EUR 31.1 (30.5) billion
in 2016. The savings from RaboDirect activities represented
22% (22%) of the private savings held at Rabobank Group level.
The number of customers of these internet savings banks grew
to approximately 923,000 (900,000).
Distribution of private savings
of Rabo Direct
in billions of euros
40
30
31-12 31-12 31-12 31-12
2013 2014 2015 2016
V
H Germany
H Ireland
H Belgium
Australia and New Zealand
Results
Amounts in millions of euros
2016
2015
Change
Net interest income
1,974
2,270
-13%
Net fee and commission income
538
513
5%
Other income
1,097
653
68%
Total income
3,609
3,436
5%
Staff costs
1,137
1,123
1%
Other administrative expenses
1,023
1,101
-7%
Depreciation
94
107
-12%
Total operating expenses
2,254
2,331
-3%
Gross result
1,355
1,105
23%
Impairment losses on goodwill and
investments in associates
0
612
-100%
Loan impairment charges
255
526
-52%
Contribution to resolution fund and DGS
78
66
18%
Bank tax and levy
73
73
0%
Operating profit before tax
949
(172)
652%
Income tax
305
161
89%
Net profit
644
(333)
293%
Loan impairment charges
(in basis points)
26
53
-51%
Ratios
Cost/income ratio
exclusive regulatory levies
62.5%
67.8%
Cost/income ratio
inclusive regulatory levies
66.6%
71.9%
Balance sheet (in EUR billion)
31-12-2016
31-12-2015
Total assets
489.5
494.7
-1%
Private sector loan portfolio
105.2
104.0
1%
Due to customers
123.7
129.8
-5%
Number of internal employees (in FTEs)
7,460
8,785
-15%
Number of external employees (in FTEs)
348
794
-56%
Total number of employees (in FTEs)
7,808
9,579
-18%
40 Rabobank Annual Report 2016
