Contents Introduction Management report Appendices Corporate governance Consolidated Financial Statements Company Financial Statements
Loan portfolio by sector
in billions of euros
300
31-12 31-12 31-12 31-12
2014 2015 2016 2017
V
Food and agri
US
I Private individuals
Share of mortgage market
in
25
31-12 31-12 31-12 31-12
2014 2015 2016 2017
continued to encourage clients to make extra repayments on their loans. In 2017,
clients'extra mortgage repayments - all those on top of the mandatory repayments
- at local Rabobanks and Obvion totalled approximately EUR 19.8 (2016:17.3) billion.
Of this amount EUR 3.6 (3.9) billion is related to low interest rates and EUR 16.2
(2016:13.4) billion comprised of repayments of the full mortgage, which is mainly
the result of moving house. On 31 December 2017, the total volume of Rabobank's
residential mortgage loan portfolio was EUR 193.1 (2016:195.9) billion. The volume
includes Obvion's loan portfolio, valued at EUR 28.5 (2016: 28.0) billion.The total
domestic retail banking loan portfolio (including business lending) fell by EUR 5.2
billion to EUR 280.0 (2016: 285.2) billion.
Loan portfolio by sector
in billions of euros 31-12-2017 31-12-2016
Volume of loans to private individuals 195.4 198.3
Volume of loans to TIS 57.7 58.6
Volume of loans to Food Agri 27.0 28.2
Total private sector loan portfolio 280.0 285.2
The integration of FGH Bank within Rabobank started in November 2016. In 2017, a
large part of the commercial real estate loan portfolio of FGH Bank was integrated into
the domestic retail banking segment. Also, Financial Solutions was transferred from
DLL to the domestic retail banking segment. At 31 December 2016 Financial Solutions'
loan portfolio totaled EUR 4.1 billion. For a like-for-Jike comparison we have restated the
private sector loan portfolio of the domestic retail banking segment at 31 December
2016 (reflecting these two transfers) from EUR 275.8 billion to EUR 285.2 billion.
Housing market characterised by high confidence and low interest rates
The housing market
Growth in the Dutch housing market continued unabated in 2017. Both the blouse
Price Index and the number of residential property transactions rose compared
to 2016. High consumer confidence, low interest rates and favourable economic
conditions contributed to these developments. Mortgage interest rates are expected
to remain low for the time being.
Market share
Rabobank's share of the Dutch mortgage market increased to 22.0% (2016: 20.5%) of
new mortgage production in 2017 (source: Dutch Land Registry Office (Kadaster)).The
local Rabobanks'market share rose to 18.0% (2016:17.3%) and Obvion's increased to
4.0% (2016: 3.2%).
Mortgage loan portfolio
The quality of Rabobank's residential mortgage loan portfolio remained very high
thanks to the recovery of the Dutch economy and the strong Dutch housing market.
In 2017, financing backed by the National Mortgage Guarantee (Nationale Hypotheek
Garantie, (NHG)) remained relatively stable at 20.0% of the mortgage loan portfolio.
The weighted average indexed loan-to-value (LTV) of the mortgage loan portfolio is
69% per 31 December 2017.
Rabobank Annual Report 2017 - Appendices
128
