7 7 Loans and advances to customers
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Contents Introduction Management report Appendices Corporate governance Consolidated Financial Statements Company Financial Statements
in millions of euros
2017
2016
Loans initiated by Rabobank:
Loans to government clients:
- leases
196
284
- other
2,117
2,957
Loans to private clients:
- overdrafts
17,535
21,677
- mortgages
200,907
206,450
- leases
16,932
16,804
- reverse repurchase transactions and securities
borrowing agreements
12,847
16,068
- corporate loans
179,204
187,827
- other
8,186
7,809
Gross loans and advances to customers
437,924
459,876
Less: loan impairment allowance loans and
advances to customers
(5,446)
(7,487)
432,478
452,389
Reclassified assets
86
418
Total loans and advances to customers
432,564
452,807
Loan impairment allowance loans and advances to customers
Balance on 1 January
7,487
8,391
Loan impairment charges from loans and
advances to customers
(38)
474
Write-off of defaulted loans during the year
(2,019)
(1,548)
Interest and other changes
16
170
Total loan impairment allowance loans and
advances to customers
5,446
7,487
Specific allowance
4,189
5,846
Collective allowance
645
756
IBNR
612
885
Total loan impairment allowance loans and
advances to customers
5,446
7,487
Gross carrying amount of loans whose value
adjustments were established on an individual
basis
16,720
16,564
In 2017, Rabobank sold loansforan amount of EUR 1.1 billion as
part of its strategy and normal business operations, consisting
of a sale of mortgage loans of EUR 0.6 billion to La Banque
Postale and Roparco mortgage loans of EUR 0.5 billion to RNHB.
Rabobank acquired financial and non-financial assets during the
year by taking possession of collateral with an estimated value
of 89 (2016: 61). It is policy of Rabobank to sell these assets in
the reasonably foreseeable future. Yields are allocated to repay
the outstanding amount.
Reclassified assets
In 2008, based on the amendments to IAS 39 and IFRS 7,
'Reclassification of financial assets', Rabobank reclassified a
number of'Financial assets held for trading'and'Available-for-
sale financial assets'to'Loans and advances to customers'and
'Loans and advances to banks'. Rabobank has identified assets
to which this amendment applies, whereby the intention has
clearly shifted from holding the securities for the near future
as opposed to selling or trading them in the short term. The
reclassifications were effected as of 1 July 2008 at their fair value
at the time.This section provides details on the impact of these
reclassifications.
The table below shows the carrying amounts and fair values
of the reclassified assets.
31 December 2017
31 December 2016
in millions of euros
Carrying
amount
Fair value
Carrying
amount
Fair value
Financial assets held for
trading reclassified to
loans
20
19
41
37
Available-for-sale financial
assets reclassified to loans
66
70
425
437
Total financial assets
reclassified to loans
86
89
466
474
If the reclassification had not been made, net profit for the
assets held for trading would have been 2 higher (2016: 3
higher).The change in revaluation reserve - available-for-sale
financial assets would have been 6 more negative in 2017 (2016:
33 more positive) if the reclassification of the available-for-sale
financial assets had not been carried out.
Following reclassification, the reclassified financial assets made
the following contribution to operating profit before taxation:
in millions of euros
2017
2016
Net income
(2)
Loan impairment charges
Operating profit before taxation on
reclassified financial assets held for trading
(2)
Net income
4
9
Loan impairment charges
Operating profit before taxation on
reclassified available-for-sale financial assets
4
9
Rabobank Annual Report 2017 - Consolidated financial statements
217
