Rabobank net profit drops 2% in 2013
2014-02-28 09:59:57
Several non-recurring events impacted results, including a settlement related to the Libor investigations.
Rabobank Group reported on Feb. 27 net profit of €2 billion for 2013, a decrease of €46 million, or 2%, compared to 2012.
Results were impacted by several non-recurring events, the company said, including the sale of Robeco and the transition to the new pension scheme benefited earnings. The high impairments at Rabo Real Estate Group and the formation of reorganization provisions at the local Rabobanks had an adverse impact.
In addition, there was the settlement relating to the Libor investigations, which dominated the year 2013. The amount of the settlement totaled €774 million. Rabobank is entitled, under the applicable tax laws, to set off a very large portion of this amount for tax purposes, both in the Netherlands and abroad. The bank has voluntarily decided not to do so. The full amount will therefore be paid by Rabobank and not the taxpayer.
On balance, net profit amounted to €2.012 billion, a limited decrease of EUR 46 million compared with 2012. With a Core Tier 1 ratio of 13.5