Titeldia
Interim Financial Information 2013Rabobank Group – Press Conference
22 August 2013
Titeldia
Interim Financial Information 2013 – resultsPiet Moerland, Chairman of the Executive Board22 August 2013
Titel met grote Tabel
Rabobank GroupDecrease in profit amid continuing recession
Amounts in millions of euros 30-Jun-13
30-Jun-12
Change
Interest 4,455 4,473
Fees and commission 1,046 1,169
Other results 944 1,241
Income 6,445 6,883 -6%
Operating expenses 4,243 4,391 -3%
Value adjustments 1,106 1,096
Income tax expense 82 180
Net profit from continued operations 1,014 1,216 -17%
Net profit from discontinued operations 98 71
Net profit 1,112 1,287 -14%
Eén kolom Tekst
• Weak economic conditions in the Netherlands
• Benefit from strategic international focus on food and agri
• Robeco sold in July
• New Collective Labour Agreement and transition to new pension scheme
• LIBOR investigations
Developments in first half of 2013 (1)
Eén kolom Tekst
Market shares in the Netherlands 30-Jun-13 31-Dec-12
•Mortgages 31% (31%)
•Savings 39% (39%)
•Trade, industry and services 44% (43%)
Cooperative dividend
Developments in first half of 2013 (2)
Titel met grote Tabel
Balance sheet developments and ratiosStrong positionsAmounts in billions of euros 30-Jun-
1330-Jun-
12
Core Tier 1 ratio 12.9% 12.7%
Tier 1 ratio 16.9% 16.9%
Total capital ratio 18.7% 17.6%
Liquidity position 131 159
Loan-to-deposit ratio 1.35 1.38
Private sector loan portfolio 454 462
Amounts due to customers 340 341
Domestic retail banking divisionNet profit EUR 615 million; -3%• Some recovery of margins on savings
deposits• Increase in innovation costs• Slight rise in value adjustments
635
215307
218305
615
• Loan portfolio EUR 305 billion; -0.5%• Amounts due to customers EUR 218
billion; +1.7%
Wholesale and international retail Net profit EUR 496 million; -9%• Sale of Yes Bank in the first half of
2012• Lower results at Global Financial
Markets and Rabo Private Equity• Decrease in value adjustments in
Ireland
543
496
118108
120105
• Loan portfolio EUR 105 billion; -2.0%• Food and agri comprises 50% of the
portfolio• Amounts due to customers EUR 120
billion; +1.7%• IDB savings EUR 27 billion; +12%
LeasingNet profit EUR 232 million; +21%
• Increase in interest income• Limited rise in value adjustments
191
232
29.6
30.2
• Lease portfolio EUR 30.2 billion; +2.0%
• Food and agri comprises 30% of the portfolio
Real EstateNet loss Rabo Real Estate Group EUR 198 million
• High(er) impairments on land• Phasing out MAB Development• Increase in bad debt costs
47
-198
7341
17200
8982
17800
• Number of homes sold 1,749; -30%• Loan portfolio EUR 19.3 billion; +0.5%• Assets under management EUR 5.7
billion; +4%
19.25.5
5.719.3
Titeldia
Interim Financial Information 2013 – analysisBert Bruggink , CFO
22 August 2013
Eén kolom Tekst
Loan portfolio EUR 454 billion; -0.8%• Contraction at local Rabobanks and Rabobank International• Growth at Obvion and De Lage Landen
Lending
+0% -1.2% -1.9%
Home mortgages in the Netherlands
Home mortgages EUR 210 billion• Few home sales, amended tax
regulations and additional repayments• 46% of total lending• Loan-to-value 83%• 20% of portfolio financed with NHG
209.6
113
68
210.1
Value adjustments 6 basis points• 6% of total value adjustments• Approximately 7,000 or 0.56%
customers have a payment arrears of 90 days or more
• Recovery is no longer possible in the case of approximately 2,800 or 0.23% customers
Titel met grote Tabel
Commercial real estate Netherlands (1)6% of lending; 26% of value adjustmentsIn millions of euros
Portfolio Impaired loans
Provisions Value adjustments
30 June 2013
Investment property
26,120 2,922 913 212
Property development
3,035 734 344 81
31 December 2012
Investment property
26,305 2,384 728 326
Property development
3,113 644 269 121
Eén kolom Tekst
Commercial real estate Netherlands (2)Write-downs versus value adjustments
Eén kolom Tekst
Amounts due to customers EUR 340 billion; +1.6%• Customer savings deposits EUR 156 billion; +4.3%• Debt securities in issue EUR 198 billion; EUR -25 billion• NSFR 102% and LCR 131%
FundingAmounts due to customers and debt securities in issue
Titel met grote Tabel
Equity
In billions of euros
Equity at 31-Dec-12 42.3
Net profit 1.1
Payments on member certificates, hybrid capital and non-controlling interests
-0.5
Earnings retention 0.6
Revaluation of liability for pension entitlements -0.7
Repayments of hybrid capital and change in member certificates
-0.5
Other changes (including exchange rates and IAS19R for Robeco and ACCBank)
-1.0
Equity at 30-Jun-13 40.7
Titel met grote Tabel
Balance sheet
In billions of euros
30-Jun-13
31-Dec-12
30-Jun-13
31-Dec-12
Cash and cash equivalents
45 68 Due to customers 340 334
Loans to customers
479 485 Debt securities in issue
198 223
Financial assets 63 63 Due to other banks
19 27
Due from other banks
34 35 Derivative financial instruments and other trade liabilities
59 75
Derivative financial instruments
48 65 Other liabilities 41 49
Other assets 29 35 Equity 41 42
Total assets 698 751 Total liabilities 698 751
Rabobank capital strategy
retainedearnings &
reserves9.9%
retainedearnings &
reservesapprox.12%
Capital structure in % of risk-weighted assets
membercertificates
3%
membercertificatesapprox. 2%
hybridcapital
approx. 3.5%
hybridcapital
4%
T2 1.8% T2 >2.5%
Core Tier 112.9%
Core Tier 114%
Tier 117.5%
Tier 116.9%
Total capital ratio>20%Total capital ratio
18.7%
Eén kolom Tekst
• Value adjustments 49 bp; long-term average 28 bp• Increase primarily at local Rabobanks and Rabo Real Estate Group• Decrease at Rabobank International
Value adjustments
Profit development Rabobank Group
Development of capital ratios
* Excluding impact sale of Robeco on 1 July 2013
Titeldia
Interim Financial Information 2013 – current developmentsPiet Moerland, Chairman of the Executive Board 22 August 2013
Eén kolom Tekst
Slight improvement in worldwide growth
Global economy improves slightly• Growth emerging markets limited• Outlook US and UK considerably better• The Eurozone is pulling out of recession
Dutch growth hindered by decrease in domestic spending • Higher export growth prospects due to higher growth in the US and the UK
and return to growth in Eurozone• Government austerity measures continue to put pressure on spending• Further drop in consumer spending, because of decrease in disposable income• Hope is placed in recovery of housing market
Economic outlook
Eén kolom Tekst
• Supervision on local Rabobanks for 90 years.• Supervisory role is legally embedded and allocated to Rabobank Nederland.• Rabobank Group encompasses 136 autonomous local Rabobanks. They are
the foundation of the Rabobank organisation. Each local Rabobank is autonomous and has its own banking licence.
• Local Rabobanks guarantee each other’s obligations. They can fall back on their centralised organisation Rabobank Nederland.
• Delegated supervision on behalf of De Nederlandsche Bank has existed since the early 1950s. Supervision pertains to controlled and honest business operations, solvency and liquidity.
• The principle is that each local Rabobank performs well. If a bank does not perform well, additional guidance is provided by Rabobank Nederland to the local Rabobank concerned. This is a normal part of the continuous improvement for which the local Rabobanks strive.
• On average 5-10% of the local Rabobanks need additional guidance.
Local Rabobanks supervised by RN
Eén kolom Tekst
• The world and customer behaviour are changing dramatically.• Customers have a need for simple and transparent financial services and want
to be able to take care of their financial affairs anytime and anywhere.• We are streamlining processes, simplifying the product portfolio and providing
self-service online and via mobile phones.• This way of serving the customer goes with an efficient organization with a
structural higher profitability.• From 28,000 to 20,000 jobs and from 136 to 100 local Rabobanks.• This will also lower our cost base by EUR 1 billion.• Number of branch offices will be halved to approximately 400. Rabobank will
still have the most dense branch office network in the Netherlands.• Rabobank will look different in 2016, but it is and will remain the cooperative,
sound and sustainable bank for its customers.
Vision 2016
Titeldia
Interim Financial Information 2013Thank you for your attention
Titeldia
Interim Financial Information 2013
Top Related