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

Rabobank Bronnenarchief

Annual Reports Rabobank | 2018 | | pagina 57