Notes to financial results
Contents Introduction Management report Appendices Corporate governance Consolidated Financial Statements Company Financial Statements
Development of underlying operating profit before tax
Amounts in millions of euros
2017
2016
Income
1,290
1,815
Adjustments on income
Regular income Athlon
0
(271)
Book profit on sale Athlon
0
(251)
Underlying income
1290
1,293
Operating expenses
742
872
Adjustments on expenses
Restructuring
1
(10)
Regular expenses A thlon
0
(160)
Underlying expenses
743
702
Regulatory levies
22
22
Loan impairment charges
106
94
Operating profit before tax
420
827
Total adjustments
(1)
(352)
Underlying profit before tax
419
475
Negative income tax
Income tax at the leasing segment decreased from EUR 170
million to minus EUR 71 million.This negative income tax line
is the result of the change in tax rates in the United States,
which are favorable for DLL.
Income stable
Total income from the leasing segment decreased by 29% to
EUR 1,290 (2016:1,815) million in 2017. Elowever, this decrease
can be attributed to the December 2016 sale of Athlon, DLL's
mobility solutions entity, including all its subsidiaries. Athlon
was still contributing to the income of the leasing segment in
2016. On a like-for-like basis, excluding Athlon results from the
2016 figures, total income was stable at EUR 1,290 (2016:1,293)
million. Net fee and commission income decreased to EUR 75
(2016:82) million. Other results mainly consisted of sales results
on end-of-lease assets. In 2016, the income from operational
lease contracts from Athlon was accounted for in other results,
which resulted, together with an impairment for one of the
foreign businesses, in a decrease in other results to EUR 207
(2016:816) million in 2017.
Operating expenses up slightly
Total operating expenses in the leasing segment decreased to
EUR 742 (2016: 872) million. Elowever, excluding Athlon results
and related restructuring expenses from the 2016 figures,
operating expenses increased by 6% to EUR 742 million. Staff
costs increased in line with the higher number of employees.
Other administrative expenses increased in line with the
administrative completion of the Athlon sale and the transfer
of Financial Solutions to Rabobank. Depreciation amounted to
EUR 28 (2016: 31) million.
Loan impairment charges increased slightly
Loan impairment charges for the leasing segment increased to
EUR 106 (2016: 94) million in 2017, corresponding with 36 (2016:
32) basis points of the average loan portfolio, well below the
long-term average of 60 basis points. As DLLs lease portfolio is
spread over more than 30 countries and 8 industries, the credit
risk associated with this portfolio is geographically diverse and
well balanced across all industry sectors. In 2017, there were no
new significant individual default cases.
Rabobank Annual Report 2017 - Appendices
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