Rabobank Group - Interim Results 2014

1. Press conference
21 August 2014
Interim financial figures 2014

2. Interim financial figures 2014
Rinus Minderhoud, Chairman of the Executive Board

3. Interim financial figures 2014 –
analysis
Bert Bruggink, CFO

4. Balance sheet
In billions of euros 30-Jun-14 31-Dec-13 30-Jun-14 31-Dec-13
Cash and cash Due to
equivalents 41 43 customers 323 326
Loans to customers 463 456 Debt securities in issue 194 195
Financial assets 53 57 Due to other banks 18 15
Due from other Derivative financial instruments
banks 41 41 and other trade liabilities 56 50
Derivative financial instruments 45 40 Other liabilities 49 43
Other assets 37 33 Equity 40 39
Total assets 680 669 Total liabilities 680 669

5. Lending
420
425
430
435
440
31-Dec-13 Private individuals TIS Food and agri 30-Jun-14
Private sector loan portfolio in billions of euros
Loan portfolio EUR 433 billion; -0.3%
• Slight growth atWholesale, Rural & Retail, De Lage Landen and Obvion
• FGH Bank virtually stable and decrease at local Rabobanks
-1% -0% +2%

6. Funding (1)
Amounts due to customers and liquidity ratios
310
315
320
325
330
31-Dec-13 Savings Other 30-Jun-14
Amounts due to customers in billions of euros
-2% 0%
Amounts due to customers EUR 323 billion; -1%
• Private savings EUR 148 billion; -2%
• Loan-to-deposit ratio 1.36 (1.35)
• Net stable funding ratio; NSFR 119% (114%)
• Liquidity coverage ratio; LCR 161% (126%)

7. Funding (2)
Liquidity position at comfortable level
In billions of euros 30-Jun-14 31-Dec-13 Change
Domestic retail banking 214 216 -2
Wholesale and international retail banking 107 108 -1
Other group entities 2 2 0
Amounts due to customers 323 326 -3
Wholesale funding 221 219 +2
Liquidity position 103 121 -19

8. Equity
In billions of euros
Equity at 31-Dec-13 39.4
Net profit +1.1
Distributions on certificates, hybrid capital and other non-controlling interests-0.6
Retained earnings +0.5
Issuance of Rabobank Certificates +0.1
Redemption of Capital Securities -0.2
Equity at 30-Jun-14 39.9

9. Capital (1)
Strategy
10.7% 9.7% 9.8% 12.0%
2.8% 2.8% 2.8%
2.0%
3.1%
2.5% 2.3%
3.5%
3.2%
3.5% 4.8%
4.5%
0%
5%
10%
15%
20%
25%
31 December
2013
1-1-2014
(CRD IV)
30-6-2014
(CRD IV)
Target 2016
In percentages of RWA
CET1 excluding certificates Rabobank Certificates
Additional tier 1 Tier 2
• Target capital ratio >20%;
2014 H1: 19.7%
• Target CET1 ratio 14%;
2014 H1: 12.6%

10. Capital (2)
Improved capital position
• Transition to new pension scheme
• Rabobank Member Certificates converted into Rabobank Certificates
• Increased amount of tier 2 capital
• Sale of subsidiaries
• Stricter regulatory requirements - CRD IV

11. Development of capital ratios
Improvement of ratios in first half of 2014
0
4
8
12
16
20
24
2005 2006 2007 2008 2009 2010 2011 2012 2013 1-1-2014
(CRD IV)
30-6-2014
(CRD IV)
Capital ratios in percentages
Common equity tier 1 ratio Tier 1 ratio Capital ratio

12. Financial results
Rabobank Group
In millions of euros 30-Jun-14 30-Jun-13 change
Interest 4,522 4,453 +2%
Commission 931 1,046 -11%
Other results 945 956 -1%
Total income 6,398 6,455 -1%
Total operating expenses 3,946 4,240 -7%
Value adjustments 1,188 1,106 +7%
Taxation and resolution levy 184 97
Net profit from continued operations 1,080 1,012 +7%
Net profit from discontinued operations - 98
Net profit 1,080 1,110 -3%

13. Net profit
by business segment
In millions of euros 30-Jun-14 30-Jun-13 change
Domestic retail banking 341 615 -45%
Wholesale and international retail banking 389 494 -21%
Leasing 223 232 -4%
Real estate -90 -189
Other 217 -42
Rabobank Group 1,080 1,110 -3%
Resolution levy 214 -
Profit excluding resolution levy 1,294 1,110 +17%

14. Operating expenses
Operating expenses down 7% compared to 2013 H1
0
1000
2000
3000
4000
5000
6000
2010-I 2010-II 2011-I 2011-II 2012-I 2012-II 2013-I 2013-II 2014-I
In millions of euros
• Efficiency ratio improved by 4.0 percentage points to 61.7%
• Further decrease of number of staff at local Rabobanks

15. Net interest income
Net interest income up 2% compared to 2013 H1
0
1000
2000
3000
4000
5000
6000
2010-I 2010-II 2011-I 2011-II 2012-I 2012-II 2013-I 2013-II 2014-I
In millions of euros
• Improvement of net interest income at domestic retail banking

16. Bad debt costs
Above long-term average
0
10
20
30
40
50
60
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014-I
In basis points of average lending
Bad debt costs
10-year rolling
average
• Bad debt costs 54 (full-year 2013: 59) bp; long-term average 32 bp
• Increase in bad debt costs mainly in real estate segment

17. Residential mortgages in the
Netherlands
48% of lending; 5% of value adjustments
30-Jun-14
31-Dec-13
Residential mortgages in billions of euros
30-Jun-14
30-Jun-13
Value adjustments in millions of euros
Residential mortgages EUR 207.6 (209.1) billion
• Decrease due to additional repayments
• 20.6% (20.3%) of portfolio financed with
National Mortgage Guarantee NHG
• Loan-to-value 79.4% (80.7%)
• Bad debt costs 5 (6) basis points
209.1
68
56
207.6

18. Commercial real estate in the
Netherlands
Write-downs versus value adjustments
0
100
200
300
400
500
600
700
800
900
2010 2011 2012 2013 2014-I
In millions of euros
Value adjustments Write-downs

19. Domestic retail banking
Net profit EUR 341 million; -45%
30-Jun-14
30-Jun-13
Net profit in millions of euros
30-Jun-14
31-Dec-13
In billions of euros
Amounts due to customers Loan portfolio
• Result of domestic retail banking impacted
mainly by resolution levy
• EUR 183 million levy
• Excluding this levy 15% decrease rather than 45%
615
215.7
303.1
214.0
298.8
341
• Loan portfolio EUR 298.8 billion; -1%
• Amounts due to customers EUR 215.7 billion; -1%

20. Wholesale and international retail
Net profit EUR 389 million; -21%
30-Jun-14
30-Jun-13
Net profit in millions of euros
30-Jun-14
31-Dec-13
In billions of euros
Amounts due to customers Loan portfolio
• Value adjustments down
• De-risking
• Lower gross result and higher taxation
494
389
108.5
87.8
107.3
89.9
• Loan portfolio EUR 89.9 billion; +2%
• Share of food and agri in portfolio 57% (56%)
• Amounts due to customers EUR 107.3 billion;
-1%

21. Leasing
Net profit EUR 223 million; -4%
30-Jun-14
30-Jun-13
Net profit in millions of euros
30-Jun-14
31-Dec-13
Lease portfolio in billions of euros
• Net interest income down slightly
• Lower level of value adjustments
232
223
30.2
31.3
• Lease portfolio EUR 31.3 billion; +4%
• Share of food and agri in portfolio 32% (30%)

22. Real estate
Net loss EUR 90 million
30-Jun-14
30-Jun-13
Result of Rabo Real Estate Group in millions of euros
• High level of value adjustments in current year
• Last year also included impairments on land
positions and revaluations of land operations
-189
-90
7341
17200
8982
1780030-Jun-14
31-Dec-13
In billions of euros
Loan portfolio
• Number of houses sold 2,562; +46%
• Loan portfolio EUR 19.6 billion; +1%
19.4
19.6

23. 23
Thank you for your attention

24. Interim financial figures 2014Interim financial figures 2014