Appendix 7 Our financial performance - segment reporting
Wholesale, Rural Retail
Underlying performance improved substantially
An increase in commercial interest margins, lower loan impairment charges and higher results from
the Markets and Private Equity division's activities had an upward effect on the net profit in the
Wholesale, Rural Retail (WRR) segment.
The results of the WRR segment were pressured by a provision of EUR 310 million, which was taken
by Rabobank's California-based subsidiary Rabobank National Association (RNA) in December
2017. WRR's net profit reached EUR 599 million at the end of the year compared to EUR 766 million
realised in 2016. Corrected for the RNA provision and restructuring costs the underlying profit
before tax of WRR increased by 15% to EUR 1,323 (2016:1,149) million.
Contents Introduction Management report Appendices Corporate governance Consolidated Financial Statements Company Financial Statements
Mainly due to fx effects, WRR's loan portfolio decreased to
EUR 101.5 (2016:108.6) billion at 31 December 2017. In line with
our Banking for Food strategy, the share of lending to the Food
Agri in the total loan portfolio of the WRR segment increased
to 60% (59%).
Loan impairment charges remained low in most regions.
The continued upturn of the global economy resulted in
a decline in the loan impairment charges from EUR 255
million to EUR 95 million.This corresponds to 9 basis point of
the average loan portfolio and is well below the long-term
average of 57 basis points.
WRR activities
WRR has an international network of branches, offices and
subsidiaries in various countries. For a complete overview of our
business banking services, click here.
The wholesale banking division serves the largest domestic
and international companies (corporates, financial institutions,
traders and private equity). We help sustain the'Banking for the
Netherlands'strategy by servicing all domestic sectors. Outside
the Netherlands, we focus on the Food Agri sector and trade-
related sectors.
Rural and retail banking is focused on offering financial
solutions for the specific needs of leading farmers and their
communities in a selected number of key Food Agri countries.
Rabobank also operates RaboDirect internet savings banks.
Internationally, Rabobank services Food Agri clients, ranging
from growers to the industrial sector, through its branches,
offices and subsidiaries in various countries.The combination of
in-depth knowledge and a worldwide network positions us as
a leading Food Agri bank in the world. We service the entire
food value chain, with dedicated specialists for each sector. We
advise our clients and prospects in these sectors by offering
them banking products, knowledge and our network. Rabobank
is active in the main food-producing countries, such as the
United States, Australia, New Zealand, Brazil and Chile, and the
main food-consuming countries in Asia and Europe, as well as
others. Our vision on global food security and Rabobank's role
in helping to establish it are described in our'Banking for Food'
strategy, which can be found here.
The wholesale banking division also facilitates the international
activities of mid-corporate Dutch clients in cooperation
with the local Rabobanks. Rabobank's International Business
Network desks - spread over five continents - specifically
focus on providing these services. Our International Business
Network gives clients access to a worldwide network of
potential partners and clients. For more information about the
International Business Network, click here.
Excluding currency effects, WRR loan portfolio saw
modest growth
In 2017, WRR's total loan portfolio decreased by 7% to EUR 101.5
(2016:108.6) billion, largely linked to the depreciation of the
US dollar. Currency effects had a downward effect on the loan
portfolio of approximately EUR 9 billion. The volume of lending
provided to the Food Agri sector decreased to EUR 60.9 (2016:
Rabobank Annual Report 2017 - Appendices
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