1. real estate

Domestic loan portfolio
EUR 334bn
International wholesale & retail
EUR 77bn
International leasing
EUR 22bn
Rabobank Group – Investor Summary
Group loan portfolio by entity EUR 433bn
The Netherlands is the home market for Rabobank
• Cooperative bank established in 1898
Unique Cross-Guarantee system
Over 55,000 employees
• 123 local cooperative banks
591 domestic offices
2 million members
10 million clients
• Domestic market shares
- mortgages 20%
- savings 37%
- SMEs 42%
- food & agribusiness 85%
Leasing
6%
Domestic retail
real estate
2%
Domestic retail
total 69%
Wholesale &
Int. Retail
21%
Other
domestic retail
SMEs
12%
Domestic retail
mortgages
48%
Domestic retail
F&A
7%
Group bad debt costs 2014-I by entity EUR 1,188mn
Key financials
June 2014 / 2014-I
Dec 2013 / 2013-I
€680bn
€669bn
Total assets
Group equity
€40bn
€39bn
Loan portfolio
€433bn
€435bn
Common Equity T1-ratio
12.6%
13.5%
Tier 1 -ratio
14.9%
16.6%
Total capital ratio
19.7%
19.8%
2014-I
2013-I
€1,080mn
€1,110mn
6.2%
5.8%
61.7%
65.7%
Net profit
Return on equity
Efficiency ratio
Domestic real estate
total 45%
Rabo Real
Estate Group
30%
Domestic retail
real estate
15%
Domestic retail
total 49%
Domestic retail
mortgages
5%
Leasing
6%
Domestic retail
F&A
Other
6%
domestic retail
SMEs
23%
Wholesale &
int. retail
15%
Net profit by group entity (2014-I)
Net profit 2014-I EUR 1,080mn
EUR mn
3000
Rabo Real Domestic real estate
Estate Group
total 6%
4%
2nd half year
1st half year
2500
Domestic retail
Wholesale & Int.
retail
2000
2014-I
1500
Leasing
Resolution levy
1000
2013-I
Rabo Real Estate
Group
500
0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
5 November 2014
-200
0
200
400
600
800
Moody’s
Aa2
S&P
Rabobank Group – Investor Summary
A+
Fitch
AA-
DBRS
Group equity EUR 39.9bn
Capital ratios at comfortable levels
22%
20%
18%
Total capital ratio
AA (high)
Implementation
CRDIV
Tier 1-ratio
CET1-ratio
(Grandfathered)
Additional Tier 1
21%
16%
14%
Retained
earnings,
reserves &
minority
interests
64%
12%
10%
Rabobank
Certificates
15%
Commercial real estate: high impairments
Domestic commercial real estate lending
• Commercial real estate financing in Domestic retail , in Rabo Real
EUR million
•
•
•
•
Estate Group and in ACC Bank
Conservative valuation policy
Domestic lessors of real estate loan portfolio
EUR 24.6bn (-6%)
Domestic property development loan portfolio
EUR 2.9bn (-4%)
ACC Bank Ireland EUR 1.0bn (-10%)
Domestic residential mortgage portfolio
•
•
•
•
•
•
•
Loans (x 1,000)
Bad debt costs
June 2014
2014-I
Domestic retail
8.8
160
Rabo Real Estate Group
15.8
345
Total Domestic
24.6
505
21
Domestic lessors of real estate
Domestic property development
Domestic retail
1.8
Rabo Real Estate Group
1.0
11
Total Domestic
2.8
32
Delinquencies, recovery procedure and foreclosures 2014-I
Low loan losses 5.4 bps
Loan-to-value ratio: 79.4% on average
NHG: 21% of mortgage portfolio
93% of portfolio has (predominantly long-term) fixed interest rate
Number of delinquencies and foreclosures remains very low
Bank has first charge at default
Bank has full recourse to the borrower
• Average house price EUR 221,000, +1.1% in 2014-I after a decline of –
20% since 2008
• Number of transactions +39% compared to first half 2013; +8% compared
to average first half of 2009-2012
• Affordability improved due to lower prices, lower interest rates and lower
stamp duty
100%
0.57%
0.35%
0.02%
Number of mortgage
clients
1.2 million
>90 days
past due
in recovery
procedure
foreclosures
(annual basis)
In % of total number of domestic mortgages
Capital & Funding
Current and future capital structure in % of RWA
Rabobank Certificates
• Most deeply subordinated capital instruments of Rabobank
• EUR 5.9bn in Common Equity Tier 1 capital
25%
• Intended pay out distribution is the higher of: 6.5% or the three-
Tier 2-Capital
(Grandfathered) Additional Tier 1-Capital
Total Capital
>20%
Rabobank Certificates
Retained earnings & reserves
20%
3,2%
4,8%
(Grandfathered) Additional Tier 1
3,1%
15%
Common
Equity Tier 1
14%
2,3%
2,8%
monthly average on an annual basis of the effective return on the most
recent 10 year Dutch state loan +150bps
• Rabobank has the discretion not to pay a distribution on the Rabobank
Certificates
• Rabobank has been profitable in each of its 115+ years of existence and
has never not declared a distribution on its certificates
• Total Additional Tier 1: EUR 8.4bn
• All currently outstanding Additional Tier 1 instruments are being
grandfathered under CRDIV
Tier 2
2,7%
10%
• Tier 2 capital increased to EUR 11bn
• All Tier 2 instruments are fully CRDIV compliant
Senior contingent notes
10,7%
5%
• March 2010: issue of EUR 1.25bn benchmark 10-y fixed rate senior note
9,9%
• Annual coupon 6.875%
• Trigger: Equity Capital Ratio (ECR) <7%
• ECR June 2014: 15.7%
• In the unlikely event that ECR were to fall below 7%, write-down to
0%
Dec 2013
June 2014
25% of par and immediate repayment of this redemption price, thus
strengthening Rabobank’s capital
Target Dec
2016
Senior unsecured funding
• Rabobank issued over EUR 18bn of MTN funding in senior unsecured
Bail-in buffer EUR 51.6bn (24% of RWA)
format during 2014-I
• Average maturity of the funding portfolio is 4.5 years with more than
EUR bn
60
EUR 40bn maturing in 2020 or later
• The global funding team operates close to the regional investor base
50
SCNs
40
T2
30
AT1
20
CET1
10
• Rabobank is committed to liquid benchmark curves in the main
currencies
• All Rabobank issues have been well received with our investors and
provide good secondary performance
More information
Investor Relations
[email protected]
0
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dec-13
+31 30 712 2401
ww.rabobank.com/IR
jun-14
Disclaimer
The information and opinions contained in this presentation are wholly indicative, for discussion purposes only and is subject to change without notice at any time. No rights may be derived from any potential
offers, transactions, commercial ideas et cetera contained in this presentation. This presentation does not constitute an offer, commitment or invitation and does not constitute investment advice and is not
intended for the use by persons an offer of securities to whom would be subject to the Netherlands Financial Supervision Act. This presentation shall not form the basis of or be relied upon in connection with any
contract or commitment whatsoever.