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 91

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Annual Reports Rabobank | 2018 | | pagina 93