Rabobank Posts EUR 1.2 Billion Net Profit in First Half-Year of 2019

In a challenging environment, Rabobank has made progress on achieving most of its strategic objectives in the first six months of the year. Net profit for the first half-year was EUR 1.2 billion.

From the Chairman of the Managing Board, Wiebe Draijer

‘In the first six months of 2019 Rabobank posted a net profit of EUR 1.2 billion. During the first half-year international developments continued to threaten stability and growth prospects worldwide. Take for example the escalating trade war between the United States and China, the growing likelihood of a hard Brexit and the persistent low interest rate environment. Given this continuing uncertainty, it is with satisfaction that we can look back and observe the important strides we have taken toward achieving our strategy and our mission as a cooperative bank. None of this would have been possible without the efforts and dedication of our employees, all of whom deserve our express thanks.’

Financial Performance

Compared to the historically high performance over the first half-year of 2018, net profit declined by 29%. The decrease is mainly attributable to a rise in impairment charges compared to their extremely low level over the same period last year. At the current level impairment charges are trending upward toward the long-term average. Income declined, mostly as the result of the derecognition of income from divested non-strategic activities (FGH Bank and BPD Marignan). The persistent low interest rate environment also affected income, but to a lesser extent.

Rabobank succeeded in cutting costs further. Compared to the first half-year of 2018, expenses decreased by 5% as a result of ongoing restructuring efforts. As a result, the cost/income ratio improved from 65.9% (over the full year 2018) to 64.4% over the past half-year. We remain focused on improving the cost/income ratio. The rate of improvement will partly be influenced by interest rate developments and increased investments for digitalization and compliance.

Rabobank maintains its strong capital position: the common equity tier 1 (CET 1) ratio stands at 15.8%, well above Rabobank’s target of at least 14%. The slight decline of 0.2% (compared to December 31, 2018) is partially a consequence of growth of our loan book. This capital position leaves Rabobank well prepared for the impact of Basel IV and TRIM.

For more information on the interim results 2019 please read the press release.

About the interim results

Published: 15 August 2019, 07:30 CET


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