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Titeldia Interim Financial Information 2013 Rabobank Group – Press Conference 22 August 2013.

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Presentation on theme: "Titeldia Interim Financial Information 2013 Rabobank Group – Press Conference 22 August 2013."— Presentation transcript:

1 Titeldia Interim Financial Information 2013 Rabobank Group – Press Conference 22 August 2013

2 Titeldia Interim Financial Information 2013 – results Piet Moerland, Chairman of the Executive Board 22 August 2013

3 Titel met grote Tabel Rabobank Group Decrease in profit amid continuing recession Amounts in millions of euros30-Jun-1330-Jun-12Change Interest4,4554,473 Fees and commission1,0461,169 Other results9441,241 Income6,4456,883-6% Operating expenses4,2434,391-3% Value adjustments1,1061,096 Income tax expense82180 Net profit from continued operations1,0141,216-17% Net profit from discontinued operations9871 Net profit1,1121,287-14%

4 Eén kolom Tekst Weak economic conditions in the Netherlands Benefit from strategic international focus on food and agri Robeco sold in July New Collective Labour Agreement and transition to new pension scheme LIBOR investigations Developments in first half of 2013 (1)

5 Eén kolom Tekst Market shares in the Netherlands 30-Jun-13 31-Dec-12 Mortgages31% (31%) Savings39% (39%) Trade, industry and services44% (43%) Cooperative dividend Developments in first half of 2013 (2)

6 Titel met grote Tabel Balance sheet developments and ratios Strong positions Amounts in billions of euros30-Jun-1330-Jun-12 Core Tier 1 ratio12.9%12.7% Tier 1 ratio16.9% Total capital ratio18.7%17.6% Liquidity position131159 Loan-to-deposit ratio1.351.38 Private sector loan portfolio454462 Amounts due to customers340341

7 Domestic retail banking division Net profit EUR 615 million; -3% Some recovery of margins on savings deposits Increase in innovation costs Slight rise in value adjustments 635 215 307 218 305 615 Loan portfolio EUR 305 billion; -0.5% Amounts due to customers EUR 218 billion; +1.7%

8 Wholesale and international retail Net profit EUR 496 million; -9% Sale of Yes Bank in the first half of 2012 Lower results at Global Financial Markets and Rabo Private Equity Decrease in value adjustments in Ireland 543 496 118 108 120 105 Loan portfolio EUR 105 billion; -2.0% Food and agri comprises 50% of the portfolio Amounts due to customers EUR 120 billion; +1.7% IDB savings EUR 27 billion; +12%

9 Leasing Net profit EUR 232 million; +21% Increase in interest income Limited rise in value adjustments 191 232 29.6 30.2 Lease portfolio EUR 30.2 billion; +2.0% Food and agri comprises 30% of the portfolio

10 Real Estate Net loss Rabo Real Estate Group EUR 198 million High(er) impairments on land Phasing out MAB Development Increase in bad debt costs 47 -198 7341 17200 8982 17800 Number of homes sold 1,749; -30% Loan portfolio EUR 19.3 billion; +0.5% Assets under management EUR 5.7 billion; +4% 19.2 5.5 5.7 19.3

11 Titeldia Interim Financial Information 2013 – analysis Bert Bruggink, CFO 22 August 2013

12 Eén kolom Tekst Loan portfolio EUR 454 billion; -0.8% Contraction at local Rabobanks and Rabobank International Growth at Obvion and De Lage Landen Lending +0%-1.2%-1.9%

13 Home mortgages in the Netherlands Home mortgages EUR 210 billion Few home sales, amended tax regulations and additional repayments 46% of total lending Loan-to-value 83% 20% of portfolio financed with NHG 209.6 113 68 210.1 Value adjustments 6 basis points 6% of total value adjustments Approximately 7,000 or 0.56% customers have a payment arrears of 90 days or more Recovery is no longer possible in the case of approximately 2,800 or 0.23% customers

14 Titel met grote Tabel Commercial real estate Netherlands (1) 6% of lending; 26% of value adjustments In millions of eurosPortfolioImpaired loansProvisions Value adjustments 30 June 2013 Investment property26,1202,922913212 Property development 3,03573434481 31 December 2012 Investment property26,3052,384728326 Property development 3,113644269121

15 Eén kolom Tekst Commercial real estate Netherlands (2) Write-downs versus value adjustments

16 Eén kolom Tekst Amounts due to customers EUR 340 billion; +1.6% Customer savings deposits EUR 156 billion; +4.3% Debt securities in issue EUR 198 billion; EUR -25 billion NSFR 102% and LCR 131% Funding Amounts due to customers and debt securities in issue

17 Titel met grote Tabel Equity In billions of euros Equity at 31-Dec-1242.3 Net profit1.1 Payments on member certificates, hybrid capital and non-controlling interests-0.5 Earnings retention0.6 Revaluation of liability for pension entitlements-0.7 Repayments of hybrid capital and change in member certificates-0.5 Other changes (including exchange rates and IAS19R for Robeco and ACCBank) Equity at 30-Jun-1340.7

18 Titel met grote Tabel Balance sheet In billions of euros30-Jun-1331-Dec-1230-Jun-1331-Dec-12 Cash and cash equivalents 4568Due to customers340334 Loans to customers479485Debt securities in issue 198223 Financial assets63 Due to other banks1927 Due from other banks3435Derivative financial instruments and other trade liabilities 5975 Derivative financial instruments 4865Other liabilities4149 Other assets2935Equity4142 Total assets698751Total liabilities698751

19 Rabobank capital strategy retained earnings & reserves 9.9% retained earnings & reserves approx.12% Capital structure in % of risk-weighted assets member certificates 3% member certificates approx. 2% hybrid capital approx. 3.5% hybrid capital 4% T2 1.8% T2 >2.5% Core Tier 1 12.9% Core Tier 1 14% Tier 1 17.5% Tier 1 16.9% Total capital ratio >20% Total capital ratio 18.7%

20 Eén kolom Tekst Value adjustments 49 bp; long-term average 28 bp Increase primarily at local Rabobanks and Rabo Real Estate Group Decrease at Rabobank International Value adjustments

21 Profit development Rabobank Group

22 Development of capital ratios * Excluding impact sale of Robeco on 1 July 2013

23 Titeldia Interim Financial Information 2013 – current developments Piet Moerland, Chairman of the Executive Board 22 August 2013

24 Eén kolom Tekst Slight improvement in worldwide growth Global economy improves slightly Growth emerging markets limited Outlook US and UK considerably better The Eurozone is pulling out of recession Dutch growth hindered by decrease in domestic spending Higher export growth prospects due to higher growth in the US and the UK and return to growth in Eurozone Government austerity measures continue to put pressure on spending Further drop in consumer spending, because of decrease in disposable income Hope is placed in recovery of housing market Economic outlook

25 Eén kolom Tekst Supervision on local Rabobanks for 90 years. Supervisory role is legally embedded and allocated to Rabobank Nederland. Rabobank Group encompasses 136 autonomous local Rabobanks. They are the foundation of the Rabobank organisation. Each local Rabobank is autonomous and has its own banking licence. Local Rabobanks guarantee each others obligations. They can fall back on their centralised organisation Rabobank Nederland. Delegated supervision on behalf of De Nederlandsche Bank has existed since the early 1950s. Supervision pertains to controlled and honest business operations, solvency and liquidity. The principle is that each local Rabobank performs well. If a bank does not perform well, additional guidance is provided by Rabobank Nederland to the local Rabobank concerned. This is a normal part of the continuous improvement for which the local Rabobanks strive. On average 5-10% of the local Rabobanks need additional guidance. Local Rabobanks supervised by RN

26 Eén kolom Tekst The world and customer behaviour are changing dramatically. Customers have a need for simple and transparent financial services and want to be able to take care of their financial affairs anytime and anywhere. We are streamlining processes, simplifying the product portfolio and providing self-service online and via mobile phones. This way of serving the customer goes with an efficient organization with a structural higher profitability. From 28,000 to 20,000 jobs and from 136 to 100 local Rabobanks. This will also lower our cost base by EUR 1 billion. Number of branch offices will be halved to approximately 400. Rabobank will still have the most dense branch office network in the Netherlands. Rabobank will look different in 2016, but it is and will remain the cooperative, sound and sustainable bank for its customers. Vision 2016

27 Titeldia Interim Financial Information 2013 Thank you for your attention

28 Titeldia Interim Financial Information 2013

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