190
815
1EN
G
Press conference
August 20th, 2015
Interim financial information for 2015
190
815
1EN
G
Interim financial information for 2015 Wiebe Draijer, Chairman of the Executive Board
190
815
1EN
G Higher profit due to economic recovery • Strong financial results
• Sound financial position
• Customer satisfaction improves
190
815
1EN
G
Priorities
• Customer focus
• Cost reduction
• Management model
• Strategy
• Capital/balance sheet management
190
815
1EN
G
Interim financial information 2015 – analysis Bert Bruggink, CFRO
190
815
1EN
G
Balance sheet
In billions of euros 30-06-2015 31-12-2014 30-06-2015 31-12-2014
Cash and Amounts due
cash equivalents 43 43 to customers 328 326
Loans and advances
to customers 467 462 Debt securities in issue 186 189
Financial assets 46 48 Due to banks 21 18
Loans and advances to Derivatives and other
banks 42 46 trade liabilities 58 68
Derivatives 50 57 Other liabilities 41 41
Other assets 27 25 Equity 41 39
Total assets 675 681 Total liabilities 675 681
190
815
1EN
G
Lending
420
425
430
435
31-12-2014 Private individuals TIS Food and agri 30-06-2015
Private sector loan portfolio in billions of euros
Loan portfolio EUR 434 billion; +1%
• Increase at Wholesale, Rural & Retail influenced by deprecation of euro
• Decline at local Rabobanks and FGH Bank
-0% +0% +5%
190
815
1EN
G
Funding (1) Amounts due to customers and liquidity ratios
315
320
325
330
31-12-2014 Private savings Other 30-06-2015
Amounts due to customers in billions of euros
+1% +0%
Amounts due to customers EUR 328 billion; +1%
• Private customer savings EUR 144 billion; +1%
• Loan-to-deposit ratio of 1.32 (1.32)
• Liquidity Coverage Ratio; LCR 130% (144%)
• Net Stable Funding Ratio; NSFR 115% (115%)
190
815
1EN
G
Funding (2) Strong liquidity position
In billions of euros 30-06-2015 31-12-2014 Change
Domestic retail banking 212 209 +3
Wholesale and international retail banking 115 116 -1
Other entities 1 1 0
Amounts due to customers 328 326 +2
Wholesale funding 212 216 -4
Liquidity buffer (HQLA) 81 80 +1
190
815
1EN
G
Equity
In billions of euros
Equity at 31-12-2014 38.9
Net profit +1.5
Payments on certificates, hybrid capital and other non-controlling interests -0.6
Reserve capacity +0.9
Issue of additional tier 1 capital +1.5
Other changes +0.1
Equity at 30-06-2015 41.4
190
815
1EN
G
Capital Strategy
10.8% 10,4% 10.5% 12.0%
2.8% 2.8% 2.7% 2.0% 2.4% 2.3% 2.9% 3.5% 5.3% 5.3% 5,4%
7.5%
0%
4%
8%
12%
16%
20%
24%
28%
31-12-2014 01-01-2015 30-06-2015 Adjusted inconnection with
TLAC
In percent of RWA
CET1 excluding certificates Rabobank Certificates
Additional tier 1 Tier 2
• LT target total capital ratio 25%;
2015 H1: 21.5%
• Target CET1 ratio 14%;
2015 H1: 13.2%
190
815
1EN
G
Development of capital ratios Improved capital ratio in 2015 H1
0
4
8
12
16
20
24
2006 2007 2008 2009 2010 2011 2012 2013 2014 30-06-2015
Capital ratios in percent
Common equity tier 1-ratio Tier 1-ratio Total capital ratio
190
815
1EN
G
Financial results Rabobank Group
In millions of euros 30-06-2015 30-06-2014 change
Net interest income 4,482 4,522 -1%
Net fee and commission income 962 931 +3%
Other income 883 945 -7%
Total income 6,327 6,398 -1%
Total operating expenses 3,833 3,946 -3%
Loan impairment charges 356 1,188
Resolution levy and contribution to resolution fund 121 214 -43%
Operating profit before taxation 2,017 1,050 +92%
Taxation 495 -30
Net profit 1,522 1,080 +41%
190
815
1EN
G
Net profit Per business division
In millions of euros 30-06-2015 30-06-2014 change
Domestic retail banking 1,073 341 +732
Wholesale and international retail banking* 310 389 -79
Leasing 247 223 +24
Real Estate 98 -90 +188
* Excluding goodwill impairment for RNA
190
815
1EN
G
Operating expenses Despite upward currency effects, expenses are down 3% compared to 2014 H1
0
1000
2000
3000
4000
5000
6000
2011-I 2011-II 2012-I 2012-II 2013-I 2013-II 2014-I 2014-II 2015-I
In milions of euros
Libor
• Efficiency ratio improves by 1.1 percentage points to 60.6%
• Further decline in workforce at local Rabobanks
190
815
1EN
G
Net interest income Balance sheet declines 1% in H1 and net interest income also down by 1% compared to 2014 H1
1,00%
1,05%
1,10%
1,15%
1,20%
1,25%
1,30%
1,35%
1,40%
1,45%
1,50%
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
2010-I 2010-II 2011-I 2011-II 2012-I 2012-II 2013-I 2013-II 2014-I 2014-II 2015-I
In millions of euros
Net interestincome (l.h. axis)
Net interestincome (related toaverage balancesheet total; r.h.axis)
• Recovery of margins on loans at local Rabobanks
• Bank BGZ does no longer contribute to net interest income and margin pressure at Wholesale, Rural & Retail
190
815
1EN
G
Loan impairment charges Below the long-term average
0
10
20
30
40
50
60
70
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015-I
In basis points of average lending
Loan impairmentcharges
10-year movingaverage
• Loan impairment charges 16 (2014 H1: 54; H2: 65; FY 60) bp; long-term average 36 bp
• Decline occurs mainly at local Rabobanks and FGH Bank
190
815
1EN
G
Residential mortgages in the Netherlands 47% of lending; 19% of loan impairment charges
30-06-2015
31-12-2014
Residential mortgages in billions of euros
30-06-2015
31-12-2014
Loan impairment charges in millions of euros
Residential mortgages EUR 204.0 (205.0) billion
• Contraction due to additional repayments
• 21% (21%) portfolio funded by NHG
• Loan-to-value 77% (78%)
• Excluding non-recurring effects, loan impairment charges amount to EUR 66 million (6 basis points)
• 2014 H1: EUR 56 million (5 basis points)
205.0
56
66
204.0
190
815
1EN
G
Commercial real estate in the Netherlands Write-offs versus loan impairment charges
0
100
200
300
400
500
600
700
800
900
2011 2012 2013 2014 2015-I
In millions of euros
Loan impairment charges Write-offs
190
815
1EN
G
Domestic retail banking Net profit EUR 1,073 million
30-06-2015
30-06-2014
Net profit in millions of euros
30-06-2015
31-12-2014
In billions of euros
Amounts due to customers Loan portfolio
• Sharp fall in loan impairment charges
• Lower operating expenses
• Last year resolution levy for SNS, this year contribution to resolution fund
341
208.9 289.8
212.4 287.0
1,073
• Loan portfolio EUR 287.0 billion; -1%
• Amounts due to customers EUR 212.4 billion; +2%
190
815
1EN
G
Wholesale and international retail Net profit EUR 310 million
30-06-2015
30-06-2014
Netto profit in million of euros
30-06-2015
31-12-2014
In billions of euros
Amounts due to customers Loan portfolio
• Private equity and reduction of illiquid assets make a positive contribution
• Loan impairment charges increase
389
310*
115.8 95.2
114.6 101.3
• Loan portfolio EUR 101.3 billion; +6%
• Share of food and agri in portfolio 59% (58%)
• Amounts due to customers EUR 114.6 billion; -1%
* Excluding goodwill impairment for RNA
190
815
1EN
G
Leasing Net profit EUR 247 million
30-06-2015
30-06-2014
Net profit in millions of euros
30-06-2015
31-12-2014
Lease portfolio in billions of euros
• Net interest income up
• Loan impairment charges down
223
247
33.0
34.9
• Lease portfolio EUR 34.9 billion; +6%
• Share of food and agri in portfolio 32% (32%)
190
815
1EN
G
Real estate Net profit EUR 98 million
30-06-2015
30-06-2014
Net profit in millions of euros
• Home sales at higher level
• Loan impairment charges the determining factor for earnings recovery
-90
98
7341
17200
8982
17800 30-06-2015
31-12-2014
Loan portfolio in billions of euros
• Number of home sales 3,147; +23%
• Loan portfolio EUR 16.3 billion; -2%
• Assets under management EUR 6.2 billion; -3%
16.7
16.3
190
815
1EN
G
Outlook Net profit in H1 not indicative for H2
24
• Customers will continue to make relatively large mortgage repayments and spend their holiday allowances
We therefore expect a slight decline in lending and amounts due to customers in H2
• The bank tax and contribution to DGS will lead to additional costs in H2
• Loan impairment charges were relatively low in H1
190
815
1EN
G
25
Thank you for your attention
190
815
1EN
G
Interim financial information for 2015 Interim financial information for 2015