Contents Foreword Management report Corporate governance
Developments in the balance sheet
Balance sheet
In billions of euros
31-12-2016
31-12-2015
Cash and cash equivalents
84.4
64.9
Loans to customers
452.8
466.0
Financial assets
38.5
43.4
Due from other banks
25.4
32.4
Derivatives
42.4
48.1
Other assets
19.1
24.0
Total assets
662.6
678.8
Due to customers
347.7
345.9
Debt securities in issue
159.3
175.0
Due to other banks
22.0
19.0
Derivatives and other trade liabilities
48.0
55.1
Other financial liabilities at FV through P/L
16.5
17.0
Other liabilities
28.6
25.6
Equity
40.5
41.2
Total liabilities and equity
662.6
678.8
Assets
In 2016, the balance sheet total decreased by EUR 16.2 billion.
Loans to customers and hence total assets at year-end 2015
were restated and increased by EUR 8.3 billion as a result of
a change in accounting principles related to the netting of cash
pools. Excluding this restatement, total assets decreased by
EUR 7.9 billion. The strengthening of the liquidity buffer due to
the increase of cash held at central banks had an upward effect
on the balance sheet total. Excluding the restatement, loans
to customers decreased by EUR 4.9 million. This decrease in
loans to customers is largely linked to the transactions aimed at
balance sheet relief measures described above. Combined with
the decrease in amounts due from other banks, these were the
main elements that contributed to the decrease in total assets.
Liabilities
On the liabilities side, amounts due to customers decreased at
Wholesale, Rural Retail. Also, Rabobank reduced its position
in debt securities in issue. This and a decrease in derivatives
and other trade liabilities, linked to interest rate developments,
resulted in a decrease in total liabilities.
Consolidated Financial Statements Company Financial Statements Pillar 3
Equity
Equity decreased by EUR 0.7 billion in 2016. In July, we
redeemed USD 2 billion in capital securities, and in October,
we also redeemed USD 1.5 billion in Trust Preferred Securities.
Because a large part of these securities had already been
bought back previously, this redemption resulted in a drop of
equity of only EUR 0.7 billion. The additional tier 1 transaction of
EUR 1.25 billion in April 2016 and retention of the profit for the
year (after deduction of payments on Rabobank Certificates and
hybrid capital instruments) had an beneficial impact on equity.
Wholesale funding
Rabobank aims to reduce its structural wholesale funding
usage. Doing so will make the bank less sensitive to
potential future financial market instability. The main source
of wholesale funding are the issued debt securities, both
short- and long-term. For more information, see the Pillar
3 report. We intend to reduce the amount of wholesale
funding for the group to EUR 150 billion by 2020. In 2016, the
amount of wholesale funding decreased by EUR 14 billion
to EUR 189 billion. In order to further diversify the funding
base, in 2016 Rabobank has started to register its inaugural
Covered Bond Program with De Nederlandsche Bank. Rabobank
also participated in the 'Targeted Long-Term Refinancing
Operations'-programme (TLTRO II) of the ECB, which is intended
to support the lending to the European real economy.
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Our output and impact: a more flexible balance sheet
