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Presentation annual results 2014 English version

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English version of the annual results 2014 presentation. More informaton: www.rabobank.com/results

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Presentation annual results 2014 English version

  1. 1. Press conference 26 February 2015 Annual figures 2014
  2. 2. Annual figures 2014 Wiebe Draijer, Chairman of the Executive Board
  3. 3. Annual figures 2014 – analysis Bert Bruggink, CFRO
  4. 4. Balance sheet In billions of euros 31-Dec-14 31-Dec-13 31-Dec-14 31-Dec-13 Cash and cash Due to equivalents 43 43 customers 326 326 Loans to customers 462 456 Debt securities in issue 189 195 Financial assets 48 57 Due to other banks 18 15 Due from other Derivative financial instruments banks 45 41 and other trade liabilities 68 50 Derivative financial instruments 56 40 Other liabilities 41 44 Other assets 27 32 Equity 39 39 Total assets 681 669 Total liabilities 681 669
  5. 5. Lending 420 425 430 435 440 31-Dec-13 Private individuals TIS Food and agri 31-Dec-14 Private sector loan portfolio in billions of euros Loan portfolio EUR 430 billion; -1% • Declines at local Rabobanks, Obvion and FGH Bank • Increases atWholesale, Rural & Retail and DLL, partly due to currency effects -3% -3% +6%
  6. 6. Funding (1) Amounts due to customers and liquidity ratios 300 305 310 315 320 325 330 31-Dec-13 Savings Other 31-Dec-14 Amounts due to customers, in billions of euros -6% +5% Amounts due to customers EUR 326 billion; 0% • Customer savings deposits EUR 143 billion; -6% • Loan-to-deposit ratio of 1.33 (1.35) • Liquidity coverage ratio; LCR 144% (126%) • Net stable funding ratio; NSFR 115% (114%)
  7. 7. Funding (2) Liquidity buffer at a comfortable level In billions of euros 31-Dec-14 31-Dec-13 Change Domestic retail banking 209 216 -7 Wholesale and international retail banking 116 109 +7 Other entities 1 2 -1 Amounts due to customers 326 326 0 Wholesale funding 216 219 -3 Liquidity buffer (HQLA) 80 84 -4
  8. 8. Equity In billions of euros Equity as at 31-Dec-13 38.5 Net profit +1.8 Payments on certificates, hybrid capital and other non-controlling interests -1.2 Reserve capacity +0.6 Issued Rabobank Certificates +0.1 Repayment of Capital Securities andTrust Preferred Securities -1.3 Foreign currency translation reserves +0.5 Other changes +0.5 Equity as at 31-Dec-14 38.9
  9. 9. Capital Strategy 10.7% 10.0% 10.8% 12.2% 2.8% 2.8% 2.8% 2.8% 3.1% 2.5% 2.4% 3.5% 3.2% 3.5% 5.3% 3.5% 4.0% 0% 4% 8% 12% 16% 20% 24% 28% 31-dec-13 1-Jan-14 (CRD IV) 31-Dec-14 (CRD IV) Target 2016 TLAC In percent of RWA CET1 excluding certificates Rabobank Certificates Additional tier 1 Tier 2 Subordinated debt • Target capital ratio >20%; 2014: 21.3% • Target CET1 ratio 14%; 2014: 13.6%
  10. 10. Development of capital ratios Improvement of ratios in 2014 0 4 8 12 16 20 24 2005 2006 2007 2008 2009 2010 2011 2012 2013 1-Jan-14 (CRD IV) 31-Dec-14 (CRD IV) Capital ratios in percent Common equity tier 1 ratio Tier 1 ratio Capital ratio
  11. 11. Financial results Rabobank Group In millions of euros 31-Dec-14 31-Dec-13 Change Interest 9,118 9,095 Commission 1,879 2,001 -6% Other results 1,860 1,934 -4% Total income 12,857 13,030 -1% Operating expenses 8,055 9,760 -17% Bad debt costs 2,633 2,643 Bank tax expense and resolution levy 488 197 Operating profit before taxation 1,681 430 Taxation -161 88 Net profit from continued operations 1,842 342 Net profit from discontinued operations - 1,665 Net profit 1,842 2,007 -8%
  12. 12. Net profit by business segment In millions of euros 31-Dec-14 31-Dec-13 Change Domestic retail banking 751 781 -4% Wholesale and international retail banking 758 46 Leasing 436 422 3% Real estate -263 -814 -68% Other 160 1,572 Rabobank Group 1,842 2,007 -8% Resolution levy 321 - Profit excluding resolution levy 2,163 2,007 +8%
  13. 13. Operating expenses Sharp fall in operating expenses (-17%) 0 1000 2000 3000 4000 5000 6000 7000 8000 9000 10000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 In millions of euros • Efficiency ratio up 12.2 percentage points to 62.7% • Operating expenses at domestic retail banking down EUR 353 million on 2013 • Settlement for the Libor affair recognised in the operating expenses of wholesale and international retail in 2013
  14. 14. Net interest income Small rise in net interest income (+ EUR 23 million) 1,05% 1,10% 1,15% 1,20% 1,25% 1,30% 1,35% 1,40% 1,45% 1,50% 0 1000 2000 3000 4000 5000 6000 7000 8000 9000 10000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 In millions of euros Net interest income Net interest income in percent of average total assets • Higher net interest income at domestic retail banking
  15. 15. Bad debt costs Above the long-term average 0 10 20 30 40 50 60 70 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 In basis points of average lending Bad debt costs 10-year moving average • Bad debt costs 60 bp (2013: 59 bp); long-term average 32 bp • Bad debt costs still high at local Rabobanks and FGH Bank, affected by the AQR
  16. 16. Residential mortgages in the Netherlands 48% of lending; 5% of bad debt costs 31-Dec-14 31-Dec-13 Residential mortgages in billions of euros 31-Dec-14 31-Dec-13 Bad debt costs in millions of euros Residential mortgages EUR 205.0 (209.1) billion • Contraction due to additional repayments • 21% (20%) portfolio financed with NHG mortgage guarantee scheme • Loan-to-value 78% (81)% • Bad debt costs residential mortgages EUR 112 million; -12% • Bad debt costs at 5 (6) basis points 209.1 127 112 205.0
  17. 17. Commercial real estate in the Netherlands Write-downs versus bad debt costs 0 100 200 300 400 500 600 700 800 900 2010 2011 2012 2013 2014 In millions of euros Bad debt costs Write-downs
  18. 18. Domestic retail banking Net profit EUR 751 million; -4% 31-Dec-14 31-Dec-13 Net profit in millions of euros 31-Dec-14 31-Dec-13 In billions of euros Amounts due to customers Loan portfolio • Result of domestic retail banking impacted by EUR 274 million resolution levy 781 215.7 303.1 209.1 290.5 751 • Loan portfolio EUR 290.5 billion; -4% • Amounts due to customers EUR 209.1 billion; -3%
  19. 19. Wholesale and international retail Net profit EUR 758 million; + EUR 712 million 31-Dec-14 31-Dec-13 Net profit in millions of euros 31-Dec-14 31-Dec-13 In billions of euros Amounts due to customers Loan portfolio • Operating expenses and bad debt costs down • Libor settlements in 2013 46 758 108.5 87.8 115.8 95.2 • Loan portfolio EUR 95.2 billion; +8% • Share of food and agri in portfolio 58% (56%) • Amounts due to customers EUR 115.8 billion; +7%
  20. 20. Leasing Net profit EUR 436 million; +3% 31-Dec-14 31-Dec-13 Net profit in millions of euros 31-Dec-14 31-Dec-13 Lease portfolio in billions of euros • Interest profit up • Bad debt costs down 422 436 30.2 33.0 • Lease portfolio EUR 33.0 billion; +9% • Share of food and agri in portfolio 32% (30%)
  21. 21. Real Estate Net loss of EUR 263 million 31-Dec-14 31-Dec-13 Net loss in millions of euros • No heavy impairments on land positions and operations, unlike 2013 • Bad debt costs still high in 2014 -814 -263 7341 17200 8982 1780031-Dec-14 31-Dec-13 Loan portfolio in billions of euros • Number of homes sold 7,064; +37% • Loan portfolio EUR 16.7 billion; -9% • Assets under management EUR 6.4 billion; +8% 18.4 16.7
  22. 22. 22 Thank you for your attention
  23. 23. Annual figures 2014Annual figures 2014

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