About this
Report
Chairman's
Foreword
Corporate
Management Report Appendices Governance
Consolidated Financial Company Financial
Statements Statements
downscaling of activities at FGH Bank and BIM. The sale of BPD
Marignan is reflected in the 48% decrease in staff levels to 618
FTEs. These developments also impacted other administrative
expenses, which decreased to EUR 73 (2017:151) million in 2018
due to lower expenses in all divisions. Depreciation landed at
EUR 5 (2017: 7) million.
Impairment Charges on Financial Assets Remained
Negative
Just as in 2017, favorable economic developments in the
Netherlands had a positive impact on impairment charges on
financial assets in the Real Estate segment. As was the case in
2017, impairment charges on financial assets were negative in
2018, meaning that releases from the allowancefor problem loans
exceeded new additions. However, net releases in 2018 were
EUR 101 million lowerthan in 2017 (i.e. EUR 15 million versus
EUR 116 million). This was mainly due to the wind-down of FGH
Bank's loan portfolioand subsequent integration ofthiscompany
into Rabobank. Impairment charges on financial assets amounted
to minus 287 (2017: minus 521) basis points of average lending.
The long-term average is 69 basis points.
Loan Portfolio Decreased by 57%
The loan portfolio of the Real Estate segment decreased by
EUR 1.5 billion to EUR 0.3 (2017:10,897) billion, largely due to the
sale of the residual part of FGH Bank's loan portfolio. On January
1, 2018, as a result of reclassifications due to the full
implementation of IFRS 9, lending decreased by EUR 1.1 billion
to EUR 0.7 billion. Including this IFRS 9 impact the loan portfolio
of the Real Estate segment decreased by 57%.
Annual Report 2018 - Appendices
95
