About this
Report
Chairman's
Foreword
Corporate
Management Report Appendices Governance
Consolidated Financial Company Financial
Statements Statements
strategic projects. Despite the increase in staff levels, staff costs
remained stable at EUR 938 (2017: 939) million, which can be
largely explained by FX effects. Other administrative expenses
decreased to EUR 845 (2017:1,194) million, largely caused by the
fact that these expenses were lifted in 2017, due to the
EUR 310 million provision taken by RNA. The decrease was partly
tempered by an increase in project expenses in 2018.
Depreciation was down to EUR 40 (2017: 56) million, largely
caused by lower depreciation on software.
Impairment Charges on Financial Assets Increased to
EUR 300 Million
WRR impairmentcharges on financial assets increased to EUR 300
(2017: 95) million in 2018. This was the result of defaults of some
large clients, mainly in Asia and Brazil. Total impairment charges
on financial assets went up to 29 (2017: 9) basis points ofthe
average private sector loan portfolio, well below the long-term
average of 58 basis points.
WRR Loan Portfolio Saw 9% Growth
In 2018, WRR's total loan portfolio increased to EUR 109.0 (2017:
101.5) billion. On January 1, 2018, as a result of reclassifications
due to the full implementation of IFRS 9, lending decreased by
EUR 1.6 billion to EUR 99.9 billion. Including this IFRS 9 impact the
WRR loan portfolio increased by 9%. Reflecting our Banking for
Food strategy, the volume of lending to the Food Agri sector
increased to EUR 66.5 (2017: 60.9) billion, accounting for 61%
(2017:60%) of WRR's total loan portfolio. Loans to the trade,
industry, and services (TIS) sectors increased to EUR 40.4 (2017:
38.4) billion. Lending to private individuals landed at EUR 2.0
(2017:2.2) billion.
Dutch and International Wholesale
WRR's wholesale portfolio totaled EUR 70.9 (2017: 64.5) billion.
Lending to the largest Dutch companies increased in 2018 to
EUR 17.9 (2017:17.1) billion. Of WRR's loan portfolio, EUR 53.0
(2017:47.4) billion was granted to wholesale clients outside ofthe
Netherlands. This increase of EUR 5.6 billion was mainly realized
in North America.
International Rural and Retail Banking
The loan portfolio to Rural and Retail clients amounted to
EUR 38.0 (2017: 36.9) billion on December 31, 2018. The main
markets for rural banking are Australia, New Zealand, the United
States, Brazil, Chile and Peru. In Australia the loan portfolio totaled
EUR 10.2 (2017:10.2) billion, in New Zealand EUR 6.4 (2017:
6.1) billion, in the United States EUR 7.9 (2017: 7.1) billion, in
Brazil EUR 3.2 (2017:2.9) billion and in Chile and Peru EUR 0.9
(2017:0.9) billion.
Rabobankoperates international retail banking activities through
subsidiaries in two countries: in the U.S., Rabobank is active
through Rabobank National Association (RNA) and in Indonesia,
through Rabobank International Indonesia (Rll). RNA's portfolio
increased to EUR 9.0 (2017: 8.3) billion, whereas the Indonesian
portfolio only amounts to EUR 0.4 (2017: 0.4) billion.
Private Savings at RaboDirect Decreased by 13%
RaboDirect is Rabobank's online bank, which operates in Belgium,
Germany, Ireland, Australia, and New Zealand. Private savings
entrusted by clients to RaboDirect are used for funding the
international Rural and Retail banking business and other
divisions of Rabobank Group. The savings balances of RaboDirect
decreased to EUR 24.7 (2017: 28.3) billion at December 31, 2018,
representing 17% (2017:20%) ofthe total private savings held at
Rabobank. The number of internet savings bank clients also
decreased to approximately 750,000 (2017: 934,000). The main
driver behind the reduction of private savings and ofthe number
of clients with RaboDirect is our withdrawal from the Irish retail
market as of May 16, 2018.
Annual Report 2018 - Appendices
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