47 Transactions with related parties
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48 Costs of external independent auditor
Contents Introduction Management report Appendices Corporate governance Consolidated Financial Statements Company Financial Statements
Two parties are considered related if one party exercises control
or has significant influence over the other party with regard
to financial or operating decisions. In the normal course of
business, Rabobank conducts a wide variety of transactions
with related entities which involve different types of loans,
deposits and transactions in foreign currencies.Transactions
between related parties also includes transactions with
associates, pension funds, joint ventures, the Managing Board
and the Supervisory Board.These transactions are conducted
against commercial terms and conditions and market prices. In
accordance with IAS 24.4, transactions within Rabobank Group
are not disclosed in the consolidated financial statements.
In the normal course of Rabobank's business operations,
banking transactions are carried out with related parties.
These involve loans, deposits and transactions in foreign
currencies. These transactions are conducted against
commercial terms and conditions and market prices.
The volumes of related party transactions, year-end outstanding
balances and the corresponding income and expenses during
the year are presented in the following table.Transactions and
balances outstanding with members of the Managing Board
and members of the Supervisory Board are disclosed in section
48. Transactions with pension funds are disclosed in section 27.
Investments
in associates
Other
related parties
in millions of euros
2017
2016
2017
2016
Loans
Outstanding at beginning of year
503
361
Provided during the year
372
178
Redeemed during the year
(478)
(88)
Other
52
Gross loans as of 31 December
397
503
Less: loan impairment allowance
(68)
Total loans as of 31 December
397
435
Deposits from banks and deposits from customers
Outstanding at beginning of the
year
7,181
7,269
29
Received during the year
654
411
29
Repaid during the year
(889)
(576)
(29)
Other
77
Total deposits as of 31 December
6,946
7,181
29
Credit related contingent liabilities
416
398
Income
Net interest income
10
12
Fee and commission income
260
227
Trading income
Other
18
Total income from transactions
with related parties
288
239
Expenses
Interest expense
332
331
Fee and commission expense
Impairments
(5)
11
Total expenses from
transactions with related parties
327
342
Expenses for services provided by Rabobank's independent
auditor, PricewaterhouseCoopers Accountants N.V. ('PwC')
and its member firms and/ or affiliates to Rabobank and its
subsidiaries in 2017 are specified as follows:
in millions of euros 2017 2016
PwC Netherlands Other PwC network firms Total PwC Netherlands Other PwC network firms Total
Audit services 9.5 7.1 16.6 6.2 8.0 14.2
Other audit services 0.4 0.4 0.8 0.5 0.1 0.6
Tax advisory services - 0.4 0.4 - 0.8 0.8
Other non-audit services - 0.2 0.2 - 2.4 2.4
Total 9.9 8.1 18.0 6.7 11.3 18.0
The audit fees listed above relate to the procedure applied
to Rabobank and its consolidated group entities by PwC and
other member firms in the global PwC network, including their
tax services and advisory groups. These audit fees relate to the
audit of the financial statements, regardless of whetherthe
work was performed during the financial year.
Rabobank Annual Report 2017 - Consolidated financial statements
Our auditor, PwC NL, has rendered, for the period to which our
statutory audit relates, in addition to the audit of the statutory
financial statements the following services to the company and
its controlled entities:
