Developments in the Balance Sheet
About this
Report
Chairman's
Foreword
Corporate
Management Report Appendices Governance
Consolidated Financial Company Financial
Statements Statements
Balance Sheet
in billions of euros
12-31-2018
1-1-2018
12-31-2017
Cash and cash equivalents
73.3
66.9
66.9
Loans and advances to customers
436.6
429.4
432.6
Financial assets
23.9
34.7
31.6
Loans and advances to banks
17.9
26.9
27.3
Derivatives
22.7
25.5
25.5
Other assets
16.0
19.1
19.1
Total assets
590.4
602.5
603.0
Deposits from customers
342.4
343.2
340.7
Debt securities in issue
130.8
137.0
134.4
Deposits from banks
19.4
18.9
18.9
Derivatives
23.9
28.6
28.1
Financial liabilities
7.0
8.3
14.4
Other liabilities
24.7
27.0
26.9
Total liabilities
548.2
563.0
563.4
Equity
42.2
39.6
39.6
Total liabilities and equity
590.4
602.5
603.0
Assets
In 2018, total assets decreased by EUR 12.1 billion to
EUR 590.4 billion, largely as a result of a decrease in loans and
advances to banks (decrease of EUR 9.0 billion)1. The private
sector loan portfolio grew by EUR 7.9 billion to EUR 416.0 billion
as at December 31, 2018.
and subordinated capital instruments, and 1 (2017:1%) other
non-controlling interests.
Development of Equity
in millions of euros
Equity at the end of December 2017 39,610
Change in accounting policy IFRS 9 (26)
Change in accounting policy IFRS 15 41
Restated balance on January 1,2018 39,625
Net profit for the period 3,004
Other comprehensive income 110
Payments on Rabobank Certificates and hybrid capital (1,059)
Redemption of Capital Securities (354)
Additional tier 1 issue 1,000
Other (90)
Equity at the end of December 2018 42,236
Wholesale Funding
Rabobank is actively reducing its use ofwholesalefunding. Doing
so will make the bank less sensitive to potential future financial
market instability. In 2018 the amount of wholesale funding
decreased by EUR 7.2 billion to EUR 153.2 (2017:160.4) billion.
Short- and long-term issued debt securities are the main source
of wholesale funding.
Liabilities
On the liabilities side, Rabobank's position in debt securities in
issue decreased by EUR 6.2 billion and financial liabilities
decreased by EUR 1.3 billion and deposits from customers
decreased by EUR 0.8 billion. All in all total liabilities decreased
by EUR 14.8 billion to EUR 548.2 billion.
Equity
The adoption of IFRS 9 and IFRS 15 had a positive impact of
EUR 15 million on the opening balance of 2018. In 2018,
Rabobank's equity increased to EUR 42.2 (2017: 39.6) billion
mainly due to retained earnings of EUR 1.9 (2017:1.5) billion and
an additional tier 1 issue carried out in September.
To limit the impact of FX fluctuations, Rabobank hedges its CET1
ratio instead of its absolute amount of equity. Consequently, the
effect of currency fluctuations on Rabobank's capital ratios was
limited. Rabobank Group's equity on December 31, 2018
consisted of 64% (2017:64%) retained earnings and reserves, 18%
(2017:19%) Rabobank Certificates, 17% (2017:16%) hybrid capital
1 The figures in this paragraph include the IFRS impact as of January 1,2018.
Annual Report 2018 - Management Report
55