5. Segment Reporting
5.7 Business Segments
About this
Report
Chairman's
Foreword
Corporate
Management Report Appendices Governance
Consolidated Financial Company Financial
Statements Statements
The business segments Rabobank uses in its reporting are defined
from a management viewpoint. This means that the segments are
reviewed as part of the strategic management of Rabobank and
are used to make business decisions with different risks and
returns.
Rabobank distinguishes five major business segments: Domestic
Retail Banking; Wholesale, Rural Retail (WRR); Leasing; Real
Estate; and Other Segments.
Domestic Retail Banking mainly encompasses the activities of
the local Rabobanks, Obvion, Financial Solutions and Roparco.
WRR supports the Rabobank Group in becoming the market
leader in the Netherlands and focuses on the Food Agri
sectors at international level. This segment develops corporate
banking activities and also controls globally operating
divisions such as Markets, Acquisition Finance, Global
Corporate Clients, Export Finance Project Finance, Trade
Commodity Finance and Financial Institutions Group. The
segment also actively involves International Direct Retail
Banking and Corporate Investments. International Rural and
Retail operations forms a part of the Rabobank label, except for
ACC Loan Management.
In the Leasing segment, DLL is responsible for leasing activities
and offers a wide range of leasing products. Manufacturers,
vendors and distributors are globally supported in their sales
with products relevant to asset financing.
Real Estate mainly encompasses the activities of BPD.Thecore
activities arethe development of housing. In 2018, BPD Europe
B.V. has sold 100% of the shares of its French subsidiary BPD
Marignan. Rabobank recognized a gain on the sale of
EUR 58 million which is presented in the income statement as
'Other income'.
Other segments within Rabobank include various sub-
segments of which no single segment can be listed
separately.This segment mainly comprises the financial results
of investments in associates (in particular Achmea B.V.),
Treasury and Head Office operations.
There are no customers who represent more than a 10% share in
Rabobank's total revenues. Transactions between the various
business segments are conducted under regular commercial
terms. Other than operating activities, there is no other material
comprehensive income between the business segments. The
financial reporting principles used for the segments are identical
to those described in the "Accounting Policies" section.
As per the Financial statements 2018, Rabobank decided to
allocate additional intersegment expenses from "Other
segments" to the other business segments: Domestic Retail
Banking, Wholesale, Rural Retail, Leasing and Real Estate to
reflect a comprehensive cost view within these business
segments. The figures in the previous period segment
information have been adjusted accordingly to align with internal
management reporting.
Annual Report2018-Consolidated Financial Statements
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