Contents Introduction Management report Appendices Corporate governance Consolidated Financial Statements Company Financial Statements
In order to limit the impact of foreign currency fluctuations,
Rabobank has chosen te hedge its capital ratios instead of its
absolute amount of equity. Rabobank's capital ratios were as a
result of this hedge only limited effected by the appreciation
of the euro. However, this hedge did result in a decrease
of equity of EUR 1.2 billion. Rabobank Group's 2017 equity
consisted of 64% (2016: 64%) retained earnings and reserves,
19% (2016:15%) Rabobank Certificates, 16% (2016: 20%) hybrid
capital and subordinated capital instruments, and 1% (2016:1%)
other non-controlling interests.
Development of equity
in millions of euros
Equity at the end of December 2016 40,524
Comprehensive income 1,130
Issue of Rabobank Certificates 1,620
Payments on Rabobank Certificates and hybrid capital (1,113)
Redemption of Capital Securities (2,333)
Other (218)
Equity at the end of December 2017 39,610
Wholesale funding
Rabobank is actively reducing its wholesale funding usage.
Doing so will make the bank less sensitive to potential future
financial market instability. In 2017, the amount of wholesale
funding decreased by EUR 28.5 billion to EUR 160.4 billion,
partly as a result of fx rate developments. Issued debt securities,
both short- and long-term, are the main source of wholesale
funding. For more information, see the Pillar 3 report. We intend
to further reduce the amount of wholesale funding for the
group going forward.
Rabobank Annual Report 2017 - Management report
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