Leasing 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 DLL had a strong year with a net profit of EUR 399 million and a portfolio growth of 9%. DLL's Food Agri portfolio equals almost EUR 13 billion, representing 38% of DLL's total portfolio. The growth of the Food Agri portfolio was most notable in Europe and Australia. Income tax increased by EUR 165 million as the 2017 results were heavily impacted by the U.S. tax reform, resulting in a significant one- off benefit. Results in millions of euros 12-31-2018 12-31-2017 Change Net interest income 986 1,008 -2% Net fee and commission income 106 75 41% Other results 274 207 32% Total income 1,366 1,290 6% Staff costs 487 487 0% Other administrative expenses 224 208 8% Depreciation 27 28 -4% Total operating expenses 738 723 2% Gross result 628 567 11% Impairment charges on financial assets 105 106 -1% Regulatory levies 25 22 14% Operating profit before tax 498 439 13% Income tax 99 (66) Net profit 399 505 -21% Impairment charges on financial assets (in basis points) 34 36 Ratios Cost/income ratio including regulatory levies 55.9% 57.8% Underlying cost/income ratio including regulatory levies 55.3% 57.8% Balance Sheet (in billions of euros) Lease portfolio 33.5 30.8 9% Number of internal employees (in FTEs) 4,610 4,302 7% Number of external employees (in FTEs) 416 335 24% Total number of employees (in FTEs) 5,026 4,637 8% Development of Underlying Operating Profit Before Tax in millions of euros 12-31-2018 12-31-2017 Income 1,366 1,290 Operating expenses 738 723 Adjustments to expenses Restructuring 7 (1) Underlying expenses 731 724 Impairment charges on financial assets 105 106 Regulatory levies 25 22 Operating profit before tax 498 439 Total adjustments 7 -1 Underlying profit before tax 505 438 Income Increased by 6% Total income from the Leasing segment increased by 6% to EUR 1,366 (2017:1,290) million in 2018. Net interest income decreased by 2% to EUR 986 (2017:1,008) million, as the result of somewhat lower margins on new business compared to 2017. Net fee and commission income increased to EUR 106 (2017: 75) million, caused by higher fee income for syndicated leases as well as a negative one-off adjustment in 2017. Other results mainly consist of income from operational leases as well as results from sales of end-of-lease assets and increased to EUR 274 (2017:207) million. This improvement can be attributed to the release of a provision for foreign activities of DLL that was taken late 2017. Operating Expenses Up by 2% Total operating expenses in the Leasing segment increased to EUR 738 (2017: 723) million. Despite the higher number of employees, staff costs remained stable at EUR 487 (2017: 487) million, which can be partly explained by the lower costs related to the pension accrual guarantee given to the pension fund. Staff levels in the Leasing segment showed an increase of 8% to 5,026 FTEs on December 31, 2018. Other administrative expenses increased to EUR 224 (2017:208) million in line with the Annual Report 2018 - Appendices 92

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Annual Reports Rabobank | 2018 | | pagina 94