About this Report Chairman's Foreword Corporate Management Report Appendices Governance Consolidated Financial Company Financial Statements Statements mortgage portfolio decreased slightly due to a still high, though declining level of early repayment. The total private sector loan portfolio of the DRB segment decreased to EUR 276.1 (January 1, 2018:279.9) billion. The loan portfolio of Wholesale, Rural Retail (WRR) increased by EUR 9.1 billion and the portfolio of Rabobank's leasing subsidiary DLL increased by EUR 3.2 billion in 2018. The aggregate domestic commercial real estate loan exposure (across all segments) is actively being managed down and amounted to EUR 21.2 (2017: 22.9) billion at December 31, 2018. Loan Portfolio in billions of euros 12-31-2018 1-1-2018 12-31-2017 Total loans and advances to customers 436.6 429.4 432.6 Of which to government clients 1.9 2.3 2.3 Reverse repurchase transactions and securities borrowing 12.9 12.9 12.9 Interest rate hedges (hedge accounting) 5.8 6.1 6.4 Private sector loan portfolio 416.0 408.1 411.0 Domestic Retail Banking 276.1 279.9 280.0 Wholesale, Rural Retail 109.0 99.9 101.5 Leasing 30.3 27.1 27.2 Real Estate 0.3 0.7 1.8 Other 0.3 0.5 0.5 The decrease in lending due to the implementation of IFRS 9 was mainly caused by two reclassifications. Both at Real Estate (FGH Bank: EUR 1.2 billion) and WRR (ACC Loan Management: EUR 1.1 billion) the portfolio decreased because a large part of the loans was mandatorily reclassified as financial assets at fair value since they were no longer considered strategic to the bank. The geographical split of the loan portfolio1 as at December 31, 2018 was as follows: 71% in the Netherlands, 11% in North America, 8% in Europe (outside the Netherlands), 5% in Australia and New Zealand, 3% in Latin America, and 2% in Asia. Loan Portfolio by Sector1 in billions of euros 12-31- 2018 12-31- 2017 Loans to private individuals 194.9 47% 198.0 48% Loans to trade, industry and services 118.0 28% 115.2 28% of which in the Netherlands 81.5 81.2 of which in other countries 36.5 34.0 Loans to Food Agri 103.1 25% 97.8 24% of which in the Netherlands 38.1 36.9 of which in other countries 65.0 60.9 Private sector loan portfolio 416.0 100% 411.0 100% 1 In the country where the entity is established. Deposits from Customers Remained Relatively Stable Total deposits from customers amounted to EUR 342.4 (January 1, 2018: 343.2) billion2. On January 1, 2018 part of financial liabilities designated at fair value were reclassified as deposits from customers (EUR 2.5 billion) after the result of the full implementation of IFRS 9 (for more information see Interim Report 2018). Deposits from customers were positively influenced by FX fluctuations (EUR 0.6 billion). DRB's total client base deposited an amount of EUR 236.7 (2017: 228.8) billion at Rabobank. Customer deposits placed at other segments decreased to EUR 105.7 (2017:114.4) billion, mainly due to lower balances from corporate customer, which are by nature more volatile than private savings. At DRB private savings increased by EUR 2.1 billion to EUR 119.1 billion, while the increase in total private savings was tempered by a EUR 3.6 billion decrease of savings at RaboDirect. At RaboDirect in Ireland private savings decreased by EUR 3.1 billion, caused by the withdrawal from the Irish retail market as of May 16, 2018. On balance, total private savings increased by EUR 0.3 billion to EUR 142.7 billion. Excluding the savings of RaboDirect in Ireland, total deposits from customers increased by EUR 2.3 billion. Deposits from Customers in billions of euros 12-31 -2018 Private savings 142.7 Domestic Retail Banking 119.1 Other segments 23.7 Other deposits from customers 199.7 Domestic Retail Banking 117.7 Other segments 82.0 Total deposits from customers 342.4 1-1-2018 12-31-2017 142.4 142.4 117.0 117.0 25.4 25.4 200.8 198.3 111.8 111.8 89.0 86.5 343.2 340.7 1 Based on country of establishment of the debtor. 2 The figures in this paragraph include the IFRS 9 impact as of January 12018. Annual Report 2018 - Management Report 52

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Annual Reports Rabobank | 2018 | | pagina 54