Sharechat Logo

Rabobank Results

Thursday 2nd April 2020

Text too small?

Rabobank’s net profit was down 10% at $129.7m for the year to December due to lower interest margins, higher expenses and impairment charges. 

According to the CEO Todd Charteris the bank focussed on growing its agricultural lending portfolio by lending to farmers (inside the farm gate) $1.1 billion but within the bank’s “risk appetite”. Its loan book stood at year-end at $13.15 billion.

The results show a net interest drop of 4% to $348.6m while expenses increased by 16% to $147.6m. The CEO said that higher staff costs which increased by $8m contributed to the lower profit as the bank increased its frontline agribusiness team as well as in their compliance and regulatory teams during 2019. Impairment charges rose from $2.5 m to $23.1m due to bad loan provisions. 

Losses from derivative trading dropped significantly from $34.6m in 2018 to $4m in 2019. 

According to the CEO the bank is positioned to meet the higher capital requirements by the Reserve bank. Its capital ratio was at 13.14% at year-end and the bank reports that it is well positioned to meet the new capital requirements within the extended timeframe of the Reserve Bank.

The Banks total assets stood at $16.8 billion at balance sheet date. Deposit liabilities increased by $769 million to $5.47 billion and borrowings from related parties stood at $6.87 billion after increasing by $834 million. 

This was paraphrased from an article by Tim Hunter co – editor of the NBR.

 “RNZL’s capital ratio currently sits at 13.14% and we are well placed to transition to the new requirements within the extended timeframe specified by the Reserve Bank.” 

Total assets at balance date were $16.8b.

Deposit liabilities grew by $769m to $5.47b, while borrowings from related parties grew $834m to $6.87b.

Sources: NBR


  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Kathmandu Holdings Limited announces Annual Report 2020
Genesis Energy announced its FY21 Q1 Performance Report
Vector announces its operational performance for the 3 months
Abano Scheme Meeting Materials
Westpac and Afterpay announce partnership
NWF agrees a new Variable Volume Fixed Price Agreement
Takeovers Panel states no objection to Metlifecare scheme
Sichuan Province Trial Confirms Truscreen Technology
PEB Announces Executive Team Changes to Support Growth
Sylvia Park opens the doors on its new Level 1 expansion

IRG See IRG research reports