Rabobank achieved profit of EUR 2.1bn in 2012

The Pak Banker - - COMPANIES/BOSS -

Piet Mo­er­land, Chair­man of the Ex­ec­u­tive Board said for Rabobank, 2012 was a dif­fi­cult year with­out any eco­nomic re­cov­ery. The Dutch econ­omy con­tracted more in 2012 than fore­seen at the be­gin­ning of the year. The year was char­ac­terised by a drop in con­sumer spend­ing, ris­ing un­em­ploy­ment, fall­ing house prices and a lack of busi­ness in­vest­ments. The debt cri­sis caused un­cer­tainty in the fi­nan­cial mar­kets. The drop in earn­ings was rel­a­tively strong in the domestic re­tail bank­ing di­vi­sion in par­tic­u­lar due to higher value ad­just­ments, lower in­ter­est in­come and mount­ing op­er­at­ing ex­penses. In ad­di­tion, Rabo Real Es­tate Group de­liv­ered a sig­nif­i­cantly worse per­for­mance and the bank tax weighed down profit by EUR 196 mil­lion. To­tal net profit for 2012 saw a 20% drop on 2011, land­ing at EUR 2,112 mil­lion. Our sol­vency and liq­uid­ity po­si­tions re­mained ro­bust: the core tier 1 ra­tio rose to 13.2% and the tier 1 ra­tio to 17.2%.

Re­tained earn­ings added to eq­uity caused the sol­vency po­si­tion, mea­sured as the core tier 1 ra­tio, to in­crease by 0.5 per­cent­age point to 13.2%, well in ex­cess of the Basel III re­quire­ments and above those of re­cent EBA stress tests. We seek to grow the sol­vency ra­tio to 14%. This re­quires growth in re­serves to out­pace growth in lend­ing. Lend­ing to pri­vate in­di­vid­u­als was up 2% to reach EUR 458 bil­lion. Growth in lend­ing was caused pri­mar­ily by the con­sol­i­da­tion of Fries­land Bank and to a lesser ex­tent by growth in the lend­ing port­fo­lios of Rabobank In­ter­na­tional, De Lage Lan­den and Ob­vion. Rabobank Group achieved a net profit of EUR 2.1 bil­lion in 2012, down 20% on 2011. The de­cline in prof­its is mainly caused by a EUR 744 mil­lion in­crease in value ad­just­ments, ris­ing to EUR 2.4 bil­lion. Our liq­uid­ity po­si­tion re­mained ro­bust at EUR 157 bil­lion. Amounts due to cus­tomers were up 1% to EUR 334 bil­lion, with the con­sol­i­da­tion of Fries­land Bank again con­tribut­ing to the in­crease. Sav­ings de­posits by pri­vate in­di­vid­u­als were up 7% to EUR 150 bil­lion. Net profit from domestic re­tail bank­ing fell by 30% to EUR 1,304 mil­lion. Busi­nesses ac­tive in con­struc­tion and real es­tate, re­tail, glasshouse hor­ti­cul­ture, and mar­itime ship­ping and in­land nav­i­ga­tion were hit par­tic­u­larly hard. This was re­flected in value ad­just­ments, which were up EUR 681 mil­lion to reach EUR 1,329 mil­lion (i.e. 44 ba­sis points, which is higher than the long-term av­er­age of 13 ba­sis points).

Newspapers in English

Newspapers from Pakistan

© PressReader. All rights reserved.