22 Financial liabilities held for trading
23 Financial liabilities designated at
fair value
24 Other liabilities
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25 Provisions
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Contents Foreword Management report Corporate governance
Consolidated Financial Statements
Company Financial Statements
Pillar 3
Financial liabilities held for trading are mainly negative fair
values of derivatives and delivery obligations that arise on the
short selling of securities. Securities are sold short to realise
gains from short-term price fluctuations. The securities needed
to settle short sales are acquired through securities lending
and repurchasing agreements. The fair value of the shares and
bonds sold short are amount to 739 (2015: 573).
The carrying value of the structured notes is 6,236 (2015: 5,104)
lower than the amount Rabobank is contractually obliged to
repay to the holders of the structured notes.
The change in fair value that is attributable to changes in own
credit risk is calculated by deducting on a note by note basis
the current fair value of the structured notes portfolio at the
reporting date from the fair value recalculated based on the
prevailing credit curve at the time of origination, with all other
pricing components unchanged. This calculation reflects the
amount that can be attributed to the change in the own credit
risk of Rabobank since the origination of these structured notes.
in millions of euros
2016
2015
Structured notes
12,608
13,057
Other debt securities
38
353
Deposits
3,874
3,581
Total financial liabilities designated at fair value
16,520
16,991
The cumulative change in fair value of the financial liabilities
designated at fair value through profit or loss attributable to
changes in the own credit risk of Rabobank amounts to 405
before taxes (2015: -83). Alignment of the calculation of OCA
with IFRS 9 definitions has led to another disclosed cumulative
change for 2015 which was previously reported at 1,041.
The main difference is caused by the previous inclusion of first
day profits. In 2016 an amount of 0 has been reclassified from
OCI to retained earnings as a result of derecognition of financial
liabilities designated at fair value through profit or loss.
in millions of euros
Note
2016
2015
Payables
5,582
6,232
Accrued interest
2,541
2,543
Employee benefits
27
315
356
Other
(6)
(811)
Provision for day 1 gains
3
Total other liabilities
8,432
8,323
in millions of euros
2016
2015
Restructuring provision
461
354
Provision for legal issues
770
347
Provision for tax issues
36
65
Other provisions
279
227
Total provisions
1,546
993
Restructuring
Provision for
Provision for
Other
in millions of euros
provision
legal issues
tax issues
provisions
Total
Opening balance on 1 January 2016
354
347
65
227
993
Additions
594
583
1
126
1,304
Withdrawals
(408)
(44)
(50)
(502)
Releases
(79)
(116)
(30)
(24)
(249)
Closing balance on 31 December 2016
461
770
36
279
1,546
Opening balance on 1 January 2015
315
211
56
212
794
Additions
285
218
13
102
618
Withdrawals
(207)
(80)
(56)
(343)
Releases
(39)
(2)
(4)
(31)
(76)
Closing balance on 31 December 2015
354
347
65
227
993
In the additions of the restructuring provision, an amount of
403 (2015: 183) is included for the reorganisation programme
of the local Rabobanks. This reorganisation provision consists
of future payments relating to redundancy pay and other
costs directly attributable to the reorganisation programme.
223 Notes to the consolidated financial statements