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

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Annual Reports Rabobank | 2018 | | pagina 206