In the context of increasing geopolitical tensions, historic interest rate hikes and a cooling economy, Rabobank posted a net profit of EUR 4,377 million in 2023. This strong result was driven by the impact of higher interest rates on our income as well as good business performance, while impairment charges trended towards more normalized levels.

A strong business performance helps the cooperative Rabobank to make a difference for society. In 2023 Rabobank made EUR 400 million available to help customers, members and employees in the Netherlands make the transition to a more sustainable future. With these initiatives we deepen our relation with our customers and members. EUR 40 million is allocated to the annual Cooperative Dividend, the remainder of the EUR 400 million is made available for five new cooperative initiatives:

    EUR 128 million Rabo Cooperative Insulation budget to accelerate the sustainability of the housing market. Mortgage customers with a house with an energy label F or G can receive a free energy advice report and EUR 1,000 to insulate their home. EUR 75 million Rabo Transition Fund aimed at funding business clients in the energy transition, food transition and circular economy through the Nationaal Groenfonds. EUR 51 million Rabo SME Sustainability Contribution to contribute up to 12.5% of the sustainable investments made by SME customers in their business. EUR 10 million Cooperative Sustainability Contribution to our 78 living environments, with which we have supported 1,600 regional projects. EUR 96 million Sustainability Contribution for eligible employees to make their living situation more sustainable, up to EUR 1,250 per employee.

Chair of the Managing Board Stefaan Decraene: “A strong business performance allows our cooperative to do more for our customers and members. It enables us to develop new cooperative products and initiatives that support our customers to accelerate the energy and the food system transitions, and to remain financially healthy.”

“In 2023 we celebrated 125 years of the cooperative Rabobank. Collaboration is in our DNA. In the past 125 years we have worked with our customers, members and employees to help them achieve their goals and to make a meaningful contribution to society. With five new cooperative initiatives we build on our 125-year-old cooperative tradition of supporting our stakeholders to make a difference in their own unique way. From homeowners to SME entrepreneurs and our members and employees.”

“The past year was characterized by rising political tensions and economic slowdown around the world. We understand that this is a challenging environment for our customers and members. We believe that with our knowledge, networks and products we can help our customers to make a difference in the energy transition and food system transition, to grow a better world together.”

“I want to thank our customers and members for their continued trust in our cooperative, and I want to thank our employees for their hard work and commitments to reach our goals.”

Financial Performance

In 2023, Rabobank benefited from higher interest rates and reported a strong net profit of EUR 4,377 million compared to EUR 2,403 million in 2022. The level of impairment charges on financial assets amounted to EUR 727 (2022: 344) million or 17 basis points of the average loan portfolio, which is below the long-term average and reflects a return to more normal circumstances. Overall, the asset quality of Rabobank’s loan portfolio remains sound.

Total income increased by 31%, driven by strong net interest income. Higher margins on deposits more than compensated margin pressure on the asset side, which was mainly visible in new mortgages. Net fee and commission income was stable at EUR 2.1 billion. Excluding the aforementioned cooperative initiatives, expenses were 9% higher than in 2022 due to an increase in staff costs (mainly related to FEC activities, investments in IT infrastructure, and collective labor agreement increases). The upward trend in the overall cost level is expected to continue as ongoing efficiency measures only partly offset higher staff costs.

While the global demand for loans remained moderate, the size of Rabobank’s private sector lending slightly increased to EUR 434.0 billion. Meanwhile Rabobank’s worldwide Food & Agri portfolio grew by 1% to EUR 114.8 billion. Rabobank was able to further expand its position in the Dutch mortgage market with a market share of 19.3% (2022: 17.3%). Overall, the mortgage loan portfolio slightly increased by EUR 0.8 billion to EUR 193.8 billion. The slowdown in the residential construction market impacted the performance of BPD, especially in Germany. At the same time our leasing subsidiary DLL saw a substantial increase of its net profit driven by higher income and lower impairment charges. DLL’s lease portfolio increased by 9% compared to 2022.

Our strong brand ensures that Rabobank’s deposit and funding mix is stable and well diversified. Deposits from domestic retail customers increased to EUR 324.7 (2022: 320.1) billion. Total deposits from customers amounted to EUR 391.4 (2022: 396.5) billion.

Driven by the strong financial results both the cost/income ratio as well as the Return on Equity improved, respectively to 55.9% (2022: 65.4%) and 9.1% (2022: 5.4%). Our CET1 ratio was further strengthened to 17.1% (2022: 16.0%), mainly due to the addition of net profit to retained earnings. This was partly compensated by an increase in RWA of EUR 2.4 billion (from EUR 240.4 billion to EUR 242.8 billion). Conservative liquidity management resulted in a sound liquidity position, and together with the strong capital position ensures a rock-solid Rabobank.

View our annual results and further details

Appendix to the press release (PDF)

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