Contents Foreword Management report Corporate governance Consolidated Financial Statements Company Financial Statements Pillar 3
Economic capital by business segment
at year-end 2016
Domestic retail banking 37%
Wholesale banking and
international retail banking 31%
Leasing 8%
Real estate 4%
Other 20%
Economic capital by risk type
at year-end 2016
Credit and transfer risk 54%
Operational and business risk 20%
Interest rate and market risk 18%
Other risks 8%
From 1 January 2017 the EC framework will be replaced with a so-called Regulatory
Capital Plus (RC+) framework. Reflecting changing regulatory requirements and similar
developments in the industry, the new framework will be based on regulatory capital,
but reserve additional capital for those risks where Rabobank considers the regulatory
framework insufficiently risk-sensitive or not prudent enough.
Economic capital by business segments
Amounts in billions of euros
Economic capital
31-12-2016 31-12-2015
Domestic retail banking
9.6 10.1
Wholesale banking and international rural and retail banking
8.1 7.7
Leasing
2.0 2.0
Real estate
1.2 1.4
Other
5.1 5.5
Rabobank Group
26.0 26.7
The EC decreased to EUR 26.0 (26.7) billion compared to year-end 2015. The decrease
was due to a number of factors of which Achmea was the most prominent.
In 2016, the regulatory capital (the external capital requirement) for the domestic
retail banking business decreased to EUR 6.4 (6.7) billion, due to a decline in lending.
The regulatory capital for WRR increased to EUR 6.5 (6.4) billion in 2016. Regulatory
capital for DLL was unchanged at EUR 1.7 (1.7) billion in 2016 as the sale of Athlon
was compensated by an increases elsewhere in the lease portfolio which were partly
the result of currency effects. The regulatory capital for the real estate segment
increased to EUR 1.2 (1.1) billion due to higher regulatory requirements. The sale of the
Rotterdam and the RNHB portfolio compensated this decrease. The credit risk fell as
a result of the reduction in non-core assets.
Qualifying capital increased
Our sizeable buffer underlines the financial solidity of Rabobank Group. The available
qualifying capital of EUR 52.9 (49.5) billion that the bank retains to absorb potential
losses was well above the level of the total external (regulatory) and internal
(economic) capital requirements.
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Our output and impact: strengthening capital ratios
