Rabobank provides an update on COVID-19 impact
Today Rabobank provides an update on the expected impact of the COVID-19 pandemic on the bank and its customers. The update should not be considered as a quarterly update on Rabobank’s financial results. As usual, Rabobank will report on its financial position and results semi-annually.
Wiebe Draijer, chairman of the Managing Board: ‘COVID-19 is not only having a major impact on people’s health, it is also hitting the (global) economy hard. That includes our customers and ourselves. With our solid capital and liquidity position, our strong strategic focus and our cooperative roots, Rabobank is well positioned to support customers and employees wherever possible in the crisis.’
Bas Brouwers, CFO of Rabobank adds: ‘The bank has robust buffers to absorb the impact of the COVID-19 pandemic. However, the present macroeconomic situation and the uncertain outlook will lead to a sharp increase of our loan impairment charges. Based on our own macroeconomic scenario dated 9 April, for the year 2020 we anticipate these to amount to approx. EUR 2 billion, which is in the upper range of twice the through-the-cycle level. Downward revision of this scenario could negatively impact these expectations. The higher loan impairment charges taken together with the expected lower income (due amongst other things to the persistent low interest rate environment) will have a significant impact on net profit for 2020.’
For more information, please find here the Investor Relations presentation.
Elements of this press release are considered by Rabobank as inside information relating directly or indirectly to Rabobank within the meaning of article 7 of the Market Abuse Regulation (EU Regulation 596/2014) that is made public in accordance with article 17 Market Abuse Regulation.