Real Estate
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
Net profit of the Real Estate segment increased by 4%, despite the downscaling of activities of Bouwfonds Investment Management
(BIM) and the integration of FGH Bank in Rabobank. The cost/income ratio of the Real Estate segment improved to 36.6%.
The net profit improvement can be largely attributed to the strong performance of Bouwfonds Property Development (BPD). It's net
profit increased by 85%on the back of favorable developments in the housing market and the sale of its French subsidiary BPD Marignan.
The loan portfolio of the Real Estate segement decreased by 57% (compared to January 1,2018), a result of the sale of the residual part
of FGFH Bank's loan portfolio.
Results
Development of Underlying Operating Profit Before Tax
in millions of euros
12-31-2018
12-31-2017
Change
in millions of euros 12-31-2018 12-31-2017
Net interest income
(7)
57
-112%
Income 574 595
Net fee and commission income
10
59
-83%
Operating expenses 209 338
Other results
571
479
19%
Adjustments to expenses Restructuring 8 29
Total income
574
595
-4%
Underlying expenses 201 309
Staff costs
131
180
-27%
Impairment charges on financial
Other administrative expenses
73
151
-52%
assets (15) (116)
Depreciation
5
7
-29%
Regulatory levies 2 4
Total operating expenses
209
338
-38%
Operating profit before tax 378 369
Gross result
365
257
42%
Total adjustments 8 29
Impairment charges on financial assets
(15)
(116)
Underlying profit before tax 386 398
Regulatory levies
2
4
-50%
Operating profit before tax
378
369
2%
Income Decreased by 4%
Income tax
70
74
-5%
In 2018, total income of the Real Estate segment decreased to
Net profit
308
295
4%
EUR 574 (2017:595) million. FGH Bank's1 loan portfolio was further
BPD
240
130
85%
integrated within Rabobankandthefinal part of its non core loan
Rabo Real Estate Group
29
101
-71%
portfolio was sold to RNHB. As a result, FGH Bank's loan portfolio
shrank and its net interest income dropped. Consequently, net
Other
39
64
-39%
Impairment charges on financial assets
interest income of Real Estate turned negative (i.e. to
(in basis points)
(287)
(521)
EUR 7 million), as BPD has to pay interest on the funding raised
to finance its activities. Net fee and commission income
Ratios
decreased to EUR 10 (2017: 59) million as the activities of BIM
Cost/income ratio incl. regulatory levies
36.8%
57.5%
were phased out. The sale of the remaining part of FGH Bank's
Underlying cost/income ratio incl.
regulatory levies
35.4%
52.6%
loan portfolio to RNHB and higher results at BPD2 had an upward
effect on other results in the Real Estate segment, which increased
Balance Sheet (in billions of euros)
by 19% to EUR 571 (2017: 479) million.
Loan portfolio
0.3
1.8
-83%
Number of houses sold
10,142
10,897
-7%
Operating Expenses Down by 38%
Number of internal employees (in FTEs)
569
1,091
-48%
Total operating expenses in the Real Estate segment decreased
Number of external employees (in FTEs)
49
87
-44%
to EUR 209 (2017: 338) million in 2018. Staff costs decreased by
Total number of employees (in FTEs)
618
1,178
-48%
EUR 49 million to EUR 131 (2017:180) million following the
1 On June 30,2018 FGFH Bank N.V. legally merged with Coöperatieve Rabobank U.A.
2 As of July 2017 the results of BPD are reported seperately. Up until June 2017 the BPD results were reported as part of Rabo Real Estate Group.
Annual Report 2018 - Appendices
94
