Developments in the balance sheet
Contents Introduction Management report Appendices Corporate governance Consolidated Financial Statements Company Financial Statements
On 31 December 2017, non-performing loans (using the EBA definition) decreased to
EUR 18,315 (2016:18,873) million. Increasingly strictcredit risk management attention
has led to more write-offs and to more non-performing loans, especially for files with
low or zero provisioning levels. As a result the level of non-performing loans did not
fully show the improved quality of the underlying loan portfolio due to the favourable
economic climate. On 31 December 2017 the NPL-ratio (non-performing loans as a
percentage of the loan portfolio) increased slightly to 3.5% (2016: 3.4%).
Due to more non-performing loans with relatively low provisioning levels, more write
offs and the appreciation of collateral value the related coverage ratio decreased to
30.0% (2016: 40.0%).
Equity
in billions of euros
50
31-12 31-12 31-12 31-12
2014 2015 2016 2017
V
I Other non-controlling interests
Hybrid capital
Rabobank Certificates
I Retained earnings and reserves
Breakdown of equity
at year-end 2017, in billions of euros
v
I Retained earnings and reserves
Rabobank Certificates
I Capital Securities
Trust Preferred Securities
I Other non-controlling interests
25.4
7.4
5.9
0.4
0.5
Balance sheet
In billions of euros
31-12-2017
31-12-2016
Cash and cash equivalents
66.9
84.4
Loans and advances to customers
432.6
452.8
Financial assets
31.6
38.5
Loans and advances to banks
27.3
25.4
Derivatives
25.5
42.4
Other assets
19.1
19.1
Total assets
603.0
662.6
Deposits from customers
340.7
347.7
Debt securities in issue
134.4
159.3
Deposits from banks
18.9
22.0
Derivatives
28.1
48.0
Financial liabilities
14.4
17.3
Other liabilities
26.9
27.7
Equity
39.6
40.5
Total liabilities and equity
603.0
662.6
Assets
In 2017, the balance sheet total decreased by EUR 59.6 billion. This decrease is largely
the result of a decrease in derivatives (EUR 16.9 billion) as a result of interest and fx rate
developments, a decrease in cash and cash equivalents (EUR 17.5 billion), and a
decrease in loans to customers (EUR 20.2 billion). We actively managed down our cash
and cash equivalents position whilst maintaining our strong liquidity ratios.
The decrease in the loan portfolio was caused in part by foreign exchange rate
movements (around EUR 11 billion).
Liabilities
On the liabilities side Rabobank reduced its position in debt securities in issue in
order to reduce its reliance on wholesale funding. Combined with a lower fair value of
derivatives and other trade liabilities, linked to interest and fx rate developments, this
resulted in a decrease in total liabilities.
Equity
In 2017, Rabobank's equity decreased marginally to EUR 39.6 (2016:40.5) billion.
The redemption of Capital Securities and the appreciation of the euro both had a
negative effect on equity.This was partly compensated by the EUR 1.6 billion proceeds
from the January 2017 issuance of Rabobank Certificates. Also, retained earnings of
EUR 1.5 billion boosted equity.
Rabobank Annual Report 2017 - Management report
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