39. Income from Investments in
Associates and Joint Ventures
41. Other Income
40. Gains/ (Losses) on Financial
Assets and Liabilities at Fair
Value through Profit or Loss
42. Staff Costs
About this
Report
Chairman's
Foreword
Corporate
Management Report Appendices Governance
Consolidated Financial Company Financial
Statements Statements
Amounts in millions of euros
Rabobanks share of profit of investments in associates and
joint ventures
Result on disposal of investments in associates and joint
ventures
Income from investments in associates and joint
ventures
2018 2017
242 246
1
243
(1)
245
Amounts in millions of euros
Gains/ (losses) on financial assets and liabilities held for
trading and from derivatives held for trading
Gains/ (losses) on financial assets designated at fair value
Gains/ (losses) on financial assets mandatorily at fair value
through profit or loss
Gains/ (losses) on financial liabilities designated at fair value
and derivatives used to hedge the interest rate risk of those
financial liabilities
Impairment on available-for-sale financial assets
Total gains/ (losses) on financial assets and liabilities at
fair value through profit or loss
2018
225
(5)
21
(3)
238
2017
127
13
n/a
(35)
(21)
84
Gains/(losses) on other financial liabilities designated at fair value
and derivatives used to hedge the interest rate risk of those
financial liabilities mainly relates to fair value changes of the
structured notes portfolio attributable to changes in i) market
interest rates and ii) day-one gains that are directly recognized in
profit or loss for an amount of EUR 5 million (2017:
EUR 34 million). The results related to fair value changes of the
structured notes due to changes in market interest rates are
largely offset by the fair value changes of the derivatives used to
hedge this interest rate risk.
Amounts in millions of euros
2018
2017
Gains/ (losses) on interest rate instruments
(310)
(538)
Gains/ (losses) on equity instruments
24
43
Gains/ (losses) on foreign currency
538
684
Other
(14)
(105)
Gains/ (losses) on financial assets and liabilities at fair
value through profit or loss
238
84
The translation gains/(losses) on foreign currency included in line
item Gains/(losses) on foreign currency amount to EUR 14 million
(2017: EUR 248 million).
Amounts in millions of euros
2018
2017
Gains/ (losses) arising from the derecognition of financial
liabilities at amortised cost
(10)
n/a
Result on sale of group companies
119
3
Other
231
231
Other income
340
234
Amounts in millions of euros
2018
2017
Wages and salaries
2,698
2,814
Social security contributions and insurance costs
348
320
Pension costs - defined contribution plans
400
570
Pension costs - defined benefit pension plans
13
2
Addition/ (release) of other post-employment provisions
8
3
Other staff costs
811
763
Staff costs
4,278
4,472
Expressed in FTEs, the numberof internal and external employees
in Rabobank was 41,861 (2017:43,729).
Following the implementation of CRD III and the regulations
governing restrained remuneration policy, Rabobank Group
adopted an amended remuneration policy: the Group
Remuneration Policy.This policy is updated on a regular basis and
includes the provisions under the Dutch Act on Remuneration
Policies for Financial Companies. Insofar as employees in the
Netherlands are still eligible for variable remuneration, it never
amounts to more than an average of 20% of the fixed income.
Outside the Netherlands, any variable remuneration never
amounts to more than 100% of the fixed income. Insofar as
identified staff (employees who can have a material influence on
the risk profile of Rabobank Group) are eligible for variable
remuneration, it is awarded for such a period that the risks
associated with the underlying business activities are adequately
taken into account. Payment of a significant portion of variable
remuneration is therefore deferred. The immediate portion of
variable remuneration is unconditional, whereas the deferred
portion is conditional. The deferred portion vests afterthree years
if the conditions are met, or after five years when rewarded to
'senior management'. Among otherthings, it is assessed whether
there has been a significant reduction in financial performance
or a significant change in risk management at Rabobank Group
and/or business unit that puts the circumstances assessed when
the relevant variable remuneration was awarded in a different
perspective. In principle, the right to any provisionally allocated
remuneration lapses when the staff member's employment ends.
50% of both the direct and the deferred portion of the variable
remuneration is allocated in cash. The cash component of the
direct portion is immediately awarded following allocation. The
cash component ofthe deferred portion is awarded to employees
Annual Report 2018 - Consolidated Financial Statements
204