Interim financial information for 2015

Transcription

1 Interim financial information for 2015 Press conference August 20th, 2015

2 Interim financial information for 2015 Wiebe Draijer, Chairman of the Executive Board

3 Higher profit due to economic recovery Strong financial results Sound financial position Customer satisfaction improves

4 Priorities Customer focus Cost reduction Management model Strategy Capital/balance sheet management

5 Interim financial information 2015 analysis Bert Bruggink, CFRO

6 Balance sheet In billions of euros Cash and Amounts due cash equivalents to customers Loans and advances to customers Debt securities in issue Financial assets Due to banks Loans and advances to Derivatives and other banks trade liabilities Derivatives Other liabilities Other assets Equity Total assets Total liabilities

7 Lending Private sector loan portfolio in billions of euros 435-0% +0% +5% Private individuals TIS Food and agri Loan portfolio EUR 434 billion; +1% Increase at Wholesale, Rural & Retail influenced by deprecation of euro Decline at local Rabobanks and FGH Bank

8 Funding (1) Amounts due to customers and liquidity ratios Amounts due to customers in billions of euros % +0% Private savings Other 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%)

9 Funding (2) Strong liquidity position In billions of euros Change Domestic retail banking Wholesale and international retail banking Other entities Amounts due to customers Wholesale funding Liquidity buffer (HQLA)

10 Equity In billions of euros Equity at 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

11 Capital Strategy 28% 24% 20% 16% 12% 8% 4% 0% In percent of RWA 5.3% 5.3% 5,4% 2.4% 2.3% 2.9% 2.8% 2.8% 2.7% 7.5% 3.5% 2.0% 10.8% 10,4% 10.5% 12.0% Adjusted in connection with TLAC 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%

12 Development of capital ratios Improved capital ratio in 2015 H1 24 Capital ratios in percent Common equity tier 1-ratio Tier 1-ratio Total capital ratio

13 Financial results Rabobank Group In millions of euros change Net interest income 4,482 4,522-1% Net fee and commission income % Other income % 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 % Operating profit before taxation 2,017 1, % Taxation Net profit 1,522 1, %

14 Net profit Per business division In millions of euros change Domestic retail banking 1, Wholesale and international retail banking* Leasing Real Estate * Excluding goodwill impairment for RNA

15 Operating expenses Despite upward currency effects, expenses are down 3% compared to 2014 H In milions of euros 5000 Libor I 2011-II 2012-I 2012-II 2013-I 2013-II 2014-I 2014-II 2015-I Efficiency ratio improves by 1.1 percentage points to 60.6% Further decline in workforce at local Rabobanks

16 Net interest income Balance sheet declines 1% in H1 and net interest income also down by 1% compared to 2014 H1 In millions of euros I 2010-II 2011-I 2011-II 2012-I 2012-II 2013-I 2013-II 2014-I 2014-II 2015-I 1,50% 1,45% 1,40% 1,35% 1,30% 1,25% 1,20% 1,15% 1,10% 1,05% 1,00% Net interest income (l.h. axis) Net interest income (related to average balance sheet 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

17 Loan impairment charges Below the long-term average 70 In basis points of average lending I Loan impairment charges 10-year moving average 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

18 Residential mortgages in the Netherlands 47% of lending; 19% of loan impairment charges Residential mortgages in billions of euros Residential mortgages EUR (205.0) billion Contraction due to additional repayments 21% (21%) portfolio funded by NHG Loan-to-value 77% (78%) Loan impairment charges in millions of euros Excluding non-recurring effects, loan impairment charges amount to EUR 66 million (6 basis points) 2014 H1: EUR 56 million (5 basis points)

19 Commercial real estate in the Netherlands Write-offs versus loan impairment charges In millions of euros I Loan impairment charges Write-offs

20 Domestic retail banking Net profit EUR 1,073 million Net profit in millions of euros ,073 Sharp fall in loan impairment charges Lower operating expenses Last year resolution levy for SNS, this year contribution to resolution fund In billions of euros Loan portfolio EUR billion; -1% Amounts due to customers EUR billion; +2% Amounts due to customers Loan portfolio

21 Wholesale and international retail Net profit EUR 310 million Netto profit in million of euros * Private equity and reduction of illiquid assets make a positive contribution Loan impairment charges increase * Excluding goodwill impairment for RNA In billions of euros Amounts due to customers Loan portfolio Loan portfolio EUR billion; +6% Share of food and agri in portfolio 59% (58%) Amounts due to customers EUR billion; - 1%

22 Leasing Net profit EUR 247 million Net profit in millions of euros Net interest income up Loan impairment charges down Lease portfolio in billions of euros 33.0 Lease portfolio EUR 34.9 billion; +6% Share of food and agri in portfolio 32% (32%)

23 Real estate Net profit EUR 98 million Net profit in millions of euros Home sales at higher level Loan impairment charges the determining factor for earnings recovery 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%

24 Outlook Net profit in H1 not indicative for H2 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 24

25 Thank you for your attention 25

26 Interim financial information for 2015