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Rabobank FY'17 profit more than doubles YOY

Netherlands-based Rabobank reported a consolidated net profit attributed to the bank of €1.51 billion for full year 2017, up from €749 million a year earler.

Total net profit reached €2.67 billion, up from €2.02 billion in 2016. Wiebe Draijer, chairman of the bank's managing board, attributed the rise in part to positive trends in the Dutch economy, to the favorable international food and agriculture markets and to lower operating expenses.

Net interest income remained flat year over year at €8.84 billion. Net fee and commission income amounted to €1.92 billion in 2017, compared to €1.83 billion in the previous year.

Income from investments in associates and joint ventures increased on a yearly basis to €245 million from €106 million, while gains on financial assets and liabilities at fair value through profit or loss dropped to €84 million from the year-ago €547 million.

The Dutch lender booked no impairment losses on goodwill and investments in associates for the year, compared to a loss of €700 million in 2016. However, it recorded loan impairment charges of €190 million in 2017, compared to reversals of €310 million a year earlier.

Rabobank's common equity Tier 1 ratio stood at 15.8% at the end of 2017, up from 14.0% a year ago, while the fully loaded CET1 ratio rose over the same period to 15.5% from 13.5%.

The total capital ratio was 26.2% at 2017-end, compared to 25.0% a year earlier. The leverage ratio stood at 6.0% at the end of 2017, compared to 5.5% at 2016-end. Draijer said the bank is targeting a CET1 ratio of at least 14% and a total capital ratio of at least 25%.