Wholesale, Rural and Retail
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
The performance of Wholesale, Rural Retail improved in 2018, as illustrated by the development of net profit, which increased to
EUR 710 million. This is an increase of EUR 123 million compared to 2017.
Impairment charges on financial assets increased to EUR 300 million, but are still below the long term average.
Compared to January 1, 2018, the loan portfolio of the WRR segment increased by 9%, to EUR 109.0 billion.
Results
in millions of euros
12-31-2018
12-31-2017
Change
Net interest income
2,388
2,367
1%
Net fee and commission income
461
432
7%
Other results
486
655
-26%
Total income
3,335
3,454
-3%
Staff costs
938
939
0%
Other administrative expenses
845
1,194
-29%
Depreciation
40
56
-29%
Total operating expenses
1,823
2,189
-17%
Gross result
1,512
1,265
20%
Impairment charges on financial assets
300
95
216%
Regulatory levies
169
171
-1%
Operating profit before tax
1,043
999
4%
Income tax
333
412
-19%
Net profit
710
587
21%
Impairment charges on financial assets (in
basis points)
29
9
Ratios
Cost/income ratio including regulatory
levies
59.7%
68.3%
Underlying cost/income ratio including
regulatory levies
59.5%
59.4%
Balance Sheet (in billions of euros)
External assets
140.2
131.9
6%
Private sector loan portfolio
109.0
101.5
7%
Number of internal employees (in FTEs)
7,211
6,966
4%
Number of external employees (in FTEs)
473
357
32%
Total number of employees (in FTEs)
7,684
7,323
5%
Development of Underlying Operating Profit Before Tax
in millions of euros
12-31-2018
12-31-2017
Income
3,335
3,454
Operating expenses
1,823
2,189
Adjustments to expenses
Restructuring
7
(2)
Impairment
RNA
0
310
Underlying expenses
1,816
1,881
Impairment charges on
financial assets
300
95
Regulatory levies
169
171
Operating profit before tax
1,043
999
Total adjustments
7
308
Underlying profit before tax
1,050
1,307
Income Down by 3%
WRR's total income decreased to EUR 3,335 (2017: 3,454) million
in 2018. Adjusted for FX effects income increased by 1%. At WRR,
underlying commercial interest margins were stable and net
interest income improved to EUR 2,388 (2017: 2,367) million.
Excluding FX effects net interest income increased by 7% due to
growth of the loan portfolio. Australia, North America and the
Netherlands had the strongest growth in net interest income (in
local currencies). Net fee and commission income showed a 7%
increase to EUR 461 (2017:432) million as our Mergers and
Acquisitions division performed stronger than in 2017. Other
results decreased by EUR 169 million to EUR 486 (2017:
655) million as our Markets division could not match the strong
performance from 2017 because results were negatively
impacted by market volatility in the final quarter of 2018. Other
results were positively influenced by a stronger performance of
our Corporate Investments division.
Operating Expenses Decreased by 17%
Operating expenses at WRR went down to EUR 1,823 (2017:
2,189) million. Excluding FX effects, operating expenses
decreased by 14%. In 2018, staffing levels at WRR increased by 361
FTEs mainly because of (temporary) staff hired for several
Annual Report 2018 - Appendices
90