Appendix 5 Our Financial Performance
Segment Reporting
Domestic Retail Banking
Highlights
Financial Results
Notes to the Financial Results
-
About this
Report
Chairman's
Foreword
Corporate
Management Report Appendices Governance
Consolidated Financial Company Financial
Statements Statements
Operating expenses at the Domestic Retail Banking segment decreased by 5% in 2018, largely caused by lower staff costs following
the reduction of the workforce.
In 2018 impairment charges on financial assets amounted to a release of EUR 150 million as the economic climate in the Netherlands
remains favorable.
Deposits from customers increased in 2018 by EUR 7.9 billion and amounted to EUR 236.7 billion.
Results
in millions of euros
12-31-2018
12-31-2017
Change
Net interest income
5,575
5,581
0%
Net fee and commission income
1,434
1,398
3%
Other results
92
74
24%
Total income
7,101
7,053
1%
Staff costs
1,158
1,430
-19%
Other administrative expenses
3,025
2,959
2%
Depreciation
84
98
-14%
Total operating expenses
4,267
4,487
-5%
Gross result
2,834
2,566
10%
Impairment charges on financial assets
(150)
(259)
Regulatory levies
237
270
-12%
Operating profit before tax
2,747
2,555
8%
Income tax
712
659
8%
Net profit
2,035
1,896
7%
Impairment charges on financial assets (in
basis points)
(5)
(9)
Ratios
Cost/income ratio including regulatory
levies
63.4%
67.4%
Underlying cost/income ratio including
regulatory levies
61.7%
66.0%
Balance Sheet (in billions of euros)
External assets
280.7
285.9
-2%
Private sector loan portfolio
276.1
280.0
-1%
Deposits from customers
236.7
228.8
3%
Number of internal employees (in FTEs)
10,943
12,466
-12%
Number of external employees (in FTEs)
1,126
1,169
-4%
Total number of employees (in FTEs)
12,069
13,635
-11%
12-31-2018
12-31-2017
7,101
7,053
4,267
4,487
69
52
52
51
4,146
4,384
(150)
(259)
237
270
2,747
2,555
727
103
2,868
2,658
Development of Underlying Operating Profit Before Tax
in millions of euros
Income
Operating expenses
Adjustments to expenses Restructuring
Derivatives
framework
Underlying expenses
Impairment charges on financial
assets
Regulatory levies
Operating profit before tax
Total adjustments
Underlying profit before tax
Underlying Performance Improved by 8%
The underlying performance of Domestic Retail Banking (DRB)
improved in 2018 compared to 2017.The underlying profit before
tax amounted to EUR 2,868 million compared to EUR 2,658 million
in 2017. In calculating the underlying profit before tax,
adjustments were madefor restructuring costs and the additional
provision taken for the interest rate derivatives framework. Total
income increased slightly, while operating expenses decreased
by EUR 220 million, boosting net profit despite EUR 109 million
lower releases of impairment charges on financial assets.
Income Increased Slightly
The total income of Rabobank's DRB business increased slightly
to EUR 7,101 (2017: 7,053) million. As was the case in 2017, we
again observed a positive impact in our lending book from new
business margins. At the same time, the volume of early interest
rate revisions in our mortgage book remained high. Net interest
Annual Report 2018 - Appendices
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