Dutch lender Rabobank reported a 29% year-over-year fall in first-half net profit, with CEO Wiebe Draijer saying that the decline was due to higher impairment charges and lower income.
First-half consolidated net profit was €1.21 billion, down from €1.70 billion in the same period in 2018.
Net interest income for the period came in at €4.21 billion, compared to €4.27 billion a year earlier, while net fee and commission income rose year over year to €1.00 billion from €981 million. The derecognition of income from divested nonstrategic activities and the persistent low interest rate environment adversely impacted income, Rabobank said Aug. 15.
The bank booked impairment charges on financial assets of €440 million in the period, compared to gains of €37 million in the year-ago period, noting that significant impairments were seen in the Netherlands, France and Brazil.
Total operating expenses fell on a yearly basis to €3.45 billion from €3.61 billion.
As of June 30, Rabobank's common equity Tier 1 ratio was 15.8%, compared to 16.0% at the end of 2018 and 15.8% at the end of June 2018.
The total capital ratio stood at 24.4% at the end of June, compared to 26.6% at 2018-end and 26.1% at the end of June 2018.