Rabobank group - IR Presentation (2014-I)

1

Investor Presentation 2014-I

21 August 2014

Rabobank Group

This presentation is prepared by Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A. incorporated in the Netherlands, trading as Rabobank Nederland (“RN”). The liability of its members is limited. RN is regulated by De Nederlandsche Bank N.V. and by the Netherlands Authority for the Financial Markets. Neither this presentation nor any of its contents may be used for any other purpose without the prior written consent of RN. This presentation is only directed at Eligible Counterparties and Professional Clients, as defined in the Markets in Financial Instruments Directive 2004/39/EC (“MiFID”). It is not directed at Retail Clients (as defined in MiFID). The content of this presentation reflects prevailing market conditions and RN’s judgment as of the date of this presentation, all of which may be subject to change. The information and opinions contained in this presentation have been compiled or arrived at from sources believed to be reliable, but no representation or warranty, express or implied is made as to their accuracy, completeness or correctness. RN has further relied upon and assumed, without independent verification, the accuracy and completeness of all information made available to it. To the extent permitted by law, RN excludes any liability howsoever arising from the contents of this presentation or for the consequences of any actions taken in reliance on this presentation or the content herein. Each client is advised to seek independent professional advice as to the suitability of any products and to their tax, accounting, legal or regulatory implications. Members of the Rabobank Group trade on their own account and may from time to time hold or act as market makers in securities issued by a client, or may act as advisors, brokers or bankers to a client or any of its affiliates. The information and opinions contained in this presentation are wholly indicative, for discussion purposes only and is subject to change without notice at any time. No rights may be derived from any potential offers, transactions, commercial ideas et cetera contained in this presentation. This presentation does not constitute an offer, commitment or invitation and does not constitute investment advice and is not intended for the use by persons an offer of securities to whom would be subject to the Netherlands Financial Supervision Act. This presentation shall not form the basis of or be relied upon in connection with any contract or commitment whatsoever. © Rabobank Nederland, Croeselaan 18, 3521 CB Utrecht, The Netherlands, www.rabobank.com/ir, Chamber of Commerce number 30046259. Investing Rabobank Nederland and the other parts of Rabobank Group that are designated as investment institutions are registered as such with the Netherlands Authority for the Financial Markets. The aforementioned investment institutions are licensed by the Netherlands Authority for the Financial Markets under the Financial Supervision Act. If you invest funds you have borrowed, you run the risk of incurring a debt as well as losing the invested funds. Your decision to invest in one of the products mentioned should solely be based on the applicable prospectus or information memorandum including the risk factors, costs, terms and conditions and underlying values. The applicable prospectus or information memorandum is available with RN or on www.rabobank.com/ir. The value of your investment can fluctuate. Past performance offers no guarantee for future results.

Disclaimer

Investor Relations

http://www.rabobank.com/ir

Cooperative, Dutch, in the world’s top 30 banks, All-finance leader in the Netherlands, largest savings and mortgage bank in the Netherlands, dominant in Dutch agriculture, global focus on food & agribusiness and one of the world’s best rated privately owned large banks. There is a lot to tell about Rabobank. This Investor Presentation will give you details about assets and capital structure, liquidity and profits. You will learn about the bank’s position in the Netherlands and internationally, in wholesale and retail, in mortgages, real estate, food & agribusiness and other sectors with details on loans, impairments and bad debt costs. About the funding strategy and a wide range of short-term and long-term funding programs. More information can be found on the Investor Relations web pages on www.Rabobank.com/IR For questions or inquiries please contact the Investor Relations department at [email protected]. Welcome to the world of Rabobank! Bert Bruggink CFRO Executive Board Rabobank Group

Welcome to the world of Rabobank

Investor Relations

http://www.rabobank.com/IR

Contents • Rabobank: Dutch, cooperative, solid, profitable 5

• Key figures Dutch economy 6 • The Netherlands is our home market 7 • European countries most important trade partners 8 • Recovery of Dutch housing market 9 • Members and local cooperatives basis of Rabobank 10 • Consistent and focused strategy: Rabobank Group in 2016 12

• Results 2014-I 13 • Net profit 2014-I EUR 1,080mn 15 • Net profit in all business lines except Rabo Real Estate Group 17 • Bad debt costs at 54 bps 19 • Capital ratios at comfortable levels 21

• Loan portfolio 23 • Diversified portfolio with focus on the Netherlands 25 • Global spread of activities 26 • Impairments, allowances and bad debt costs 28 • Domestic retail & Rabo Real Estate Group 29 • Wholesale, International Retail & Leasing 30 • Dutch residential mortgages 31 • Loan-to-value domestic residential mortgages 33 • F&A portfolio 35 • Non-F&A portfolio 37 • Commercial real estate : high impairments 39

• Equity, liabilities & funding 41 • Well-balanced balance sheet 43 • High quality equity base 44 • IFRS equity versus qualifying capital 45 • Capital strategy Rabobank. 46 • Bail-in buffer EUR 51.6bn 47 • Strong protection against Senior bail-in 48 • Rabobank Certificates 49 • (Grandfathered) Additional Tier 1 & Tier 2 50, 51 • Senior contingent notes & Stress analysis Equity Capital Ratio 52, 53 • Liquidity buffer EUR 103bn 55 • In-depth access to senior unsecured funding 57 • The public market: Euro benchmark issuance & other currencies 59, 61 • Short-term debt 63 • Private placements 64

• Preview FY2014 65

Tables

1 Key figures Dutch economy 6

2 Key figures Rabobank Group 11

3 Financial results Rabobank Group 14 4 Financial results Domestic retail + Wholesale & int. retail 16

5 Group loans, impairments , allowance and bad debt costs 18

6 Impact of implementation CRDIV on qualifying capital 20

7 Group loan portfolio by entity 24

8 Domestic loan portfolio by client category 24

9 Impairments, allowances and bad debt costs 26

10, 11 Loans & impairments Domestic retail and Real Estate Group 28

12, 13 Loans & impairments Wholesale & int. retail and Leasing 29

14 International loan portfolio 30

15 Domestic residential mortgage portfolio 32

16 Loan-to-value domestic residential mortgage portfolio 33

17 F&A portfolio 34

18 Non-F&A portfolio 36

19 Commercial real estate lending 38

20 Balance sheet 42

21 Equity 44

22 IFRS equity versus qualifying capital 45

23 Bail-in buffer 47

24 (Grandfathered) Additional Tier 1 50

25 Tier 2 issues 51

26 Liquidity 54

27, 28 Funding highlights 2014, 2013 56

29 EUR benchmark curve 58

30 Other currencies public market 60

31 Short-term funding programmes 62

32 Short-term funding 63

1. Rabobank: Dutch, cooperative, solid, profitable • Key figures Dutch economy • European countries most important trade partners • The Netherlands is our home market • Recovery of the Dutch housing market • Members and local cooperatives basis of Rabobank • Consistent and focused strategy: Rabobank Group in 2016

5 Investor Relations

2013 2014 2015

Gross Domestic Product -0.7% +0.5% +1.5%

Private consumption -1.6% -0.5% +0.5%

Government spending -0.6% +1% -0.5%

Private investment -4.1% +3.75% +5%

Exports +2.2% +3.5% +5%

Imports +1% +4.5% +4.75%

Inflation 2.6% 0.75% 1.25%

Unemployment 6.7% 7.25% 7%

Government budget (% GDP) -2.3% -2.5% -1.75%

Government debt (% GDP) 68.6% 69.25% 69.25%

Table 1: Key figures Dutch economy


Rabobank: Dutch, cooperative, solid, profitable

Key figures Dutch economy

The Netherlands is our home market

The Netherlands is the home market for Rabobank • 76% of Group loan portfolio is in the Netherlands • 123 local cooperative banks • Rabobank is a dominant player in all financial services with

high market shares: • Mortgages (new mortgages 2014-I) 20% • Savings 37% • SMEs 42% • Agriculture & horticulture 85%

Key figures Dutch economy (Dec 2013) • Population 16.8 million • GDP EUR 643bn • GDP per capita 3rd in the EU, 12th in the world • Savings deposits EUR 377bn • Pension funds EUR 1,176bn • Mortgage debt EUR 632bn • Value of housing stock EUR 1,236bn • Exports EUR 543bn (incl. services) of which 70% to the EU • Imports EUR 481bn (incl. services) of which 52% from the EU Economic Outlook • Further economic recovery • Improvement of consumer confidence • Recovery of housing market • Decrease of government deficit

The Netherlands covered by 123 local cooperative banks



Exports of goods (excl. services) 2013: EUR 433bn Imports of goods (excl. services) 2013: EUR 386bn

Germany 25%

Belgium 11%

UK 8%

France 8%

Italy 5%

Spain 3%

Poland 2%

Russia 1%

rest of Europe 16%

China 2%

rest of Asia Pacific

9%

USA 4%

rest of Americas 3% Africa

3% Germany

16%

Belgium 10%

UK 7%

Russia 5%

France 5%

Norway 4% Italy

2%

rest of Europe 14%

China 8%

Japan 2%

rest of Asia Pacific

11%

USA 7%

rest of Americas 5%

Africa 4%

Source: CBS Source: CBS


European countries most important trade partners


Recovery of the Dutch housing market

0,000

50,000

100,000

150,000

200,000

250,000

2007 2008 2009 2010 2011 2012 2013 2014

2nd half year

1st half year

Number of transactions

Average house price of houses sold

150,000

170,000

190,000

210,000

230,000

250,000

270,000

290,000

Source: CBS

• Average house price EUR 221,000, +1.1% in 2014-I after a decline of -20% since 2008

• Number of transactions +39% compared to first half 2013; +8% compared to average first half of 2009-2012

• Affordability improved due to lower prices, lower interest rates and lower stamp duty

• Owner occupation 60%, lower than EU average 69%

• Mortgage guarantee system NHG • Protection of creditor in case of residual debt • Maximum mortgage loan EUR 265,000 • Borrowers pay a one-off guarantee fee of 1% of mortgage

loan • Lower interest rate for borrower • Back-stop government guarantee of the fund

• Demand exceeds supply structurally • Increasing number of households • Limited land available for housing • Limited new production • Shortage of housing stock • Interest paid is tax-deductible • Shortage of rented houses, especially in the non-regulated

segment • Annual income based rent increases in social rental sector

Source: CBS



EUR

Members and local cooperatives basis of Rabobank

• 2.0 million members of local Rabobank cooperatives

• Non-financial membership: no entry fee, no dividend

• Limited say on business strategy of local Rabobank via Members Council

Organization structure

Unique cross guarantee

10 million clients 2.0 million members

123 local cooperative Rabobanks

ownership and cross-guarantee

Rabobank Nederland

specialized subsidiaries

De Lage Landen

Schretlen & Co

Rabobank Nederland

Rabo Mortgage Banks

Local Rabobanks

1st level 2nd level

Unique cross guarantee

• Local Rabobanks liable for each other’s obligations (1st level)

• Ensures intra-Group credit support (2nd level)

• Rabobank Group is treated as a consolidated entity for the regulatory supervision of solvency, liquidity and other controls



EUR million June 2014 / 2014-I Dec 2013 / 2013-II June 2013 / 2013-I

Financials Total assets 679,513 669,404 693,371

Private sector loan portfolio 433,155 434,682 449,890

Due to customers 323,035 326,222 336,491

Group equity 39,854 39,443 40,029

Common Equity Tier 1-ratio 12.6% 13.5% 12.9%

Total capital ratio 19.7% 19.8% 18.7%

Net profit 1,080 2,008 1,110

Presence Local cooperative banks 123 129 136

Domestic offices 591 656 802

Members (x1000) 1,954 1,947 1,931

Foreign places of business 766 769 761

Number of employees (in FTEs) 55,055 56,870 59,506

Ratings Standard & Poor’s AA-/neg/A-1+ AA-/neg/A-1+ AA-/neg/A-1+

Moody’s Aa2/neg/P-1 Aa2/neg/P-1 Aa2/neg/P-1

Fitch AA-/neg/F1+ AA-/neg/F1+ AA/neg/F1+

DBRS AA (high)/neg/R-1 (high) AAA/under review/R-1 (high) AAA/neg/R-1 (high)

Table 2: Key figures Rabobank Group



Consistent and focused strategy: Rabobank Group in 2016

• Predominantly Dutch bank

• Strong cooperative identity

• All-finance-leadership position in the Netherlands

Target for year-end 2016

Actual June 2014

Contribution to target in 2012-2016

Return on tier 1 capital 8% 6.2% • EUR 1.2bn cost savings within the domestic retail business and Rabobank Nederland

• Staff reduction of 9,000 – 10,000 FTEs

• Higher return on capital invested at all other entities

• Change of capital composition

Common Equity Tier 1-ratio 14% 12.6% • Adding retained earnings to equity

• Reduction of RWA due to sale of Bank BGZ

• Capital requirement of group entities will be managed strictly

Total capital ratio >20% 19.7% • Issuing Additional Tier 1 and Tier 2 capital

Loan-to-deposit ratio 1.30 1.36 • Diversification of funding sources

• Further modest growth of savings at International Direct Banking

Financial targets 2016

Rabobank Group strategy • Global position as the leading food & agribusiness bank

in a selected number of countries

• Creditworthiness at the highest level

• High level of corporate social responsibility



2. Results 2014-I • Net profit 2014-I EUR 1,080mn • Net profit in all entities except Rabo Real Estate Group • Bad debt costs at 54 bps • Capital ratios at comfortable levels


EUR million 2014-I 2013-I

Total income 6,398 6,455 -1%

Total operating expenses 3,946 4,240 -7%

Gross profit 2,452 2,215 +11%

Bad debt costs 1,188 1,106 +7%

Resolution levy 214 0

Operating profit before taxation 1,050 1,109 -5%

Net profit continued activities 1,080 1,012 +7%

Net profit discontinued activities 0 98

Net profit 1,080 1,110 -3%

Return on equity 6.2% 5.8% +0.4%-pnt

Efficiency ratio 61.7% 65.7% -4%-pnt

Bad debt costs in basis points (annual basis)

54 bps 49 bps +5 bps

Table 3: Financial results Rabobank Group


Results 2014-I

Net profit 2014-I EUR 1,080mn

• Net profit 2014-I EUR 1,080mn (-3%) • Group net profit +17% when excluding the resolution levy

• Net profit was impacted negatively by • High bad debt costs, especially in domestic Commercial Real

Estate • Resolution levy in connection with the nationalization of

SNS Reaal • Decrease of commission income

• Net profit was impacted positively by

• Decrease of staff costs and other operating expenses • Increase of interest income

Net profit 2014-I EUR 1,080mn

0

500

1000

1500

2000

2500

3000

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

2nd half year

1st half year EUR mn


Results 2014-I

Domestic retail (EUR million) 2014-I 2013-I

Total income 3,502 3,810 -8%

Total operating expenses 2,258 2,368 -5%

Gross profit 1,244 1,442 -14%

Bad debt costs 578 629 -8%

Resolution levy 183 0

Operating profit before taxation 483 813 -41%

Net profit 341 615 -45%

Efficiency ratio 64.5% 62.2% +2.3%-pnt

Bad debt costs in basis points (annual basis) 38 bps 41 bps -3bps

Wholesale & int. retail (EUR million) 2014-I 2013-I

Total income 1,935 1,968 -2%

Total operating expenses 1,162 1,126 +3%

Gross profit 773 842 -8%


Operating profit before taxation 595 614 -3%

Net profit 389 494 -21%

Efficiency ratio 60.1% 57.2% +2.9%-pnt

Bad debt costs in basis points (annual basis) 35 bps 44 bps -9bps

Table 4: Financial results Domestic retail and Wholesale & int. retail


Results 2014-I

Net profit in all entities except Rabo Real Estate Group

• Group net profit -3% to EUR 1,080mn • Group net profit +17% when excluding the resolution levy

• Domestic retail -45% to EUR 341mn

• Net profit -15% when excluding the resolution levy

• Wholesale & international retail -21% to EUR 389mn

• Leasing -4% to EUR 223mn

• Rabo Real Estate Group decrease of loss by EUR 99mn to EUR 90mn loss. Higher bad debt costs, but no further impairments on and revaluations of land positions

Net profit by group entity (2014-I)

-400 -200 0 200 400 600 800

2014-I

2013-I

Domestic retail *

Wholesale & Int. retail

Leasing

Rabo Real Estate Group


EUR mn

Results 2014-I

* 2014-I including or excluding the resolution levy of EUR 183mn.

Resolution levy

EUR mn June 2014 Dec 2013

Group loan portfolio 433,155 434,682 -0%

Impaired loans 13,737 12,809 +7%

- in % of loans 3.2% 2.9% +0.3%-pnt

Allowance 4,422 4,306 +3%

- in % of impaired loans 32% 34% -2%-pnt

2014-I 2013-I

Bad debt costs 1,188 1,106 +7%

- in bps (annual basis) 54 49 +5 bps

Break-down bad debt costs 2014-I 2013-I

Domestic mortgages 56 68 -18%

Domestic Lessors of real estate 505 212 +138%

Domestic Property Development 32 81 -61%

Domestic retail food & agri 64 94 -32%

Other domestic retail SMEs 277 339 -18%

Wholesale & Int. Retail 178 228 -22%

Leasing 69 85 -19%

Table 5: Group loans, impairments, allowances and bad debt costs


Results 2014-I

Bad debt costs at 54 bps Bad debt costs 2014-I by client category: EUR 1,188mn

• Bad debt costs of EUR 1,188mn in 2014-I • 54 basis points on an annual basis • Bad debt costs consist of

• Domestic mortgages EUR 56mn, only 5% of total whereas domestic mortgages make up 48% of total Group private sector lending

• Domestic lessors of real estate EUR 505mn of which: • Domestic retail EUR 160mn • Rabo Real Estate Group EUR 345mn

• Domestic property development EUR 32mn of which: • Domestic retail EUR 21mn • Rabo Real Estate Group EUR 11mn

• Domestic retail food & agri EUR 64mn, mainly in horticulture under glass. The other food & agri categories have very low bad debt costs.

• Other domestic retail SMEs: EUR 277mn with relatively high bad debt costs in industry

• Wholesale & international retail EUR 178mn of which ACC Loan Management EUR 97mn (of which CRE: EUR 60mn)

• Leasing EUR 69mn

Domestic mortgages

5%

Domestic Lessors of real

estate 43%

Domestic Property

Development 3%

Domestic retail food and agri

5%

Other domestic SMEs 23%

Wholesale & Int.retail

15%

Leasing 6%


Results 2014-I

EUR billion CRDIV 30 June 2014* CRDIV 1 Jan 2014* CRDIII 31 Dec. 2013

Common Equity Tier 1 capital 27.2 26.0 28.6

Tier 1 capital 32.2 31.3 35.1

Total capital 42.6 38.6 41.7

Risk-weighted assets 216.2 208.8 210.8

Common Equity Tier 1-ratio 12.6% 12.5% 13.5%

Tier 1-ratio 14.9% 15.0% 16.6%

Total capital ratio 19.7% 18.5% 19.8%

Table 6: Impact of implementation CRDIV on qualifying capital

* Note The CRD IV figures in this table are excluding interim results as defined in article 26 CRR.


Results 2014-I

Capital ratios at comfortable levels

• Risk-weighted assets EUR 216.2bn (+2%)

• The new CRDIV regulation is effective as of 1 January 2014 • The implementation of CRDIV and call of part of the Capital

Securities had a negative impact on the capital ratios • The issue of Tier 2 capital had a positive effect on the ratios

• Regulatory capital ratios

• Common Equity Tier 1-ratio: 12.6% • Tier 1-ratio: 14.9% • Total capital ratio (BIS-ratio): 19.7% • Basel III Leverage ratio: 4.6%

• Basel III (excluding management action)

• Fully loaded Common Equity Tier-1 ratio: 10.8% • Fully loaded leverage ratio 3.3%

Capital ratios

10%

12%

14%

16%

18%

20%

22%

Total capital ratio

Tier 1-ratio

Common Equity Tier 1-ratio

Implementation CRDIV


* Note The CRD IV figures on this page are excluding interim results as defined in article 26 CRR.

Results 2014-I

3. Loan portfolio • Diversified portfolio with focus on the Netherlands • Impairments, allowances and bad debt costs • Domestic retail & Rabo Real Estate Group • Wholesale, International Retail &Leasing • Global spread of activities • Domestic residential mortgage portfolio • Loan-to-value domestic residential mortgages • F&A portfolio • Non-F&A portfolio • Commercial real estate: high impairments


EUR bn June 2014 Dec 2013

Group total 433.2 434.7 -0%

• Domestic retail 298.8 303.1 -1%

• Wholesale & Int. retail 89.9 87.8 +2%

- Domestic Wholesale 12.8 12.1 +6%

- International - Wholesale - Rural & Retail

77.1 44.7 32.4

75.7 44.6 31.1

+2% +0% +4%

• Leasing 25.7 24.7 +4%

- Domestic 4.1 4.2 -7%

- International 21.6 20.5 +5%

• Rabo Real Estate Group 18.1 18.3 -1%

- Domestic lessors of real estate & property development

16.8 17.2 -2%

- Other 1.3 1.2 8%

Table 7: Group loan portfolio by entity

EUR million June 2014 Dec 2013

Total Domestic lending 333.8 337.7 -1%

• Mortgages 207.6 209.1 -1%

• Food & agri retail 28.7 29.2 -2%

• Commercial real estate - Domestic retail - Rabo Real Estate Group

28.8 10.7 18.1

30.2 11.9 18.3

-5% -10%

-1%

• Other SMEs 51.8 52.9 -2%

• Wholesale 12.8 12.1 +6%

• Leasing 4.1 4.2 -2%

Table 8: Domestic loan portfolio by client category


Loan portfolio

Diversified portfolio with focus on the Netherlands

Domestic portfolio by entity EUR 334bn (76% of Group loan portfolio)

Domestic portfolio by client category EUR 334bn

Domestic retail 90%

Wholesale 4%

Leasing 1%


5%

Mortgages 62%

Food & agri retail 9%

Commercial real estate

9%

Other SMEs 15%

Wholesale 4%

Leasing 1%

Group loan portfolio by entity EUR 433bn

International portfolio EUR 99bn (24% of Group loan portfolio)

Domestic retail 69%

Wholesale & Int. Retail 21%

Leasing 6%


4%

Retail 33%

Wholesale 45%

Leasing 22%


Loan portfolio

EUR million June 2014 % of loans Dec 2013 % of loans

Impaired loans Domestic retail 6,492 2.2% 6,651 2.2%

Wholesale & int. retail 2,666 3.0% 2,670 2.9%

Leasing 687 2.7% 721 2.9%

Rabo Real Estate Group 3,892 21.5% 2,767 15.1%

Total Rabobank Group 13,737 3.2% 12,809 2.9%

% of impaired loans % of impaired loans

Allowance Domestic retail 2,033 31% 2,275 34%

Wholesale & int. retail 678 25% 708 27%

Leasing 448 65% 480 67%

Rabo Real Estate Group 1,262 32% 842 30%

Total Rabobank Group 4,422 32% 4,306 34%

2014-I in bps * 2013-I in bps *

Bad debt costs Domestic retail 578 38 bps 629 41 bps

Wholesale & int. retail 178 35 bps 228 44 bps

Leasing 69 47 bps 85 59 bps

Rabo Real Estate Group 358 391 bps 164 180 bps

Total Rabobank Group 1,188 54 bps 1,106 49 bps

Table 9: Impairments, allowances and bad debt costs


* Annual basis

Loan portfolio

Impairments, allowances and bad debt costs Group impaired loans by entity EUR 13.7bn

Group bad debt costs 2014-I by entity EUR 1,188mn

Group loan portfolio by entity EUR 433bn

Group allowance by entity EUR 4,422mn

Domestic retail real estate

15%

Domestic retail mortgages

6%

Domestic retail F&A 9%

Other domestic retail SMEs

18%

Wholesale & int. retail 19%

Leasing 5%

Rabo Real Estate Group 28%


15%


5%



23% Wholesale & int.

retail 15%

Leasing 6%


30%


22%


5%



10%

Wholesale & int. retail 15%

Leasing 10%

Rabo Real Estate Group 29%



2%


48%



12%

Wholesale & Int. Retail 21%

Leasing 6%


4%

Loan portfolio

Domestic retail total 69%




Domestic real estate total 6%




EUR million June 2014

Loan portfolio (x 1,000) 298.8 -1%

Impaired loans 6,492 -2%

- in % of loans 2.2% 0%-pnt

Allowance 2,033 -11%

- in % of impaired loans 31% -3%-pnt

2014-I

Bad debt costs 578 -8%

- in bps (annual basis) 38 bps -3 bps

Table 10: Domestic retail: Loans & impairments

Domestic retail & Rabo Real Estate Group


Loan portfolio (x 1,000) 18.1 -1%

Impaired loans 3,892 +41%

- in % of loans 21.5% +6.4%-pnt

Allowance 1,262 +50%


2014-I

Bad debt costs 358 +118%

- in bps (annual basis) 391 bps +211 bps

Table 11: Rabo Real Estate Group: Loans & impairments

• Local Rabobanks and Obvion • Residential mortgages, savings, SMEs (incl. F&A and

commercial real estate financing), payment services, private banking and insurance

• 123 Local cooperative banks with 591 branches • 2 million members, 6.7 million private clients, 800,000

corporate clients • 25,192 FTEs (-1,807)

• Net profit EUR 341mn (-21%) • Bad debt costs 38 bps (41 bps) • Loans EUR 299bn (-1%) • Due to customers EUR 214bn (-1%)

• FGH Bank and Bouwfonds • Commercial real estate financing, development of residential

property and real estate investment management • Netherlands, France and Germany • 1,506 FTEs

• Net result EUR -90mn (EUR -189mn) • Bad debt costs 391 bps (180 bps) • Loans EUR 18.1bn (-1%) • Number of houses sold: 2,562 (+46%)

Domestic retail



Loan portfolio


Loan portfolio (x 1,000) 89.9 +2%

Impaired loans 2,666 -0%

- in % of loans 3.0% +0.1%-pnt

Allowance 678 -4%


2014-I



Table 12: Wholesale and int. retail: Loans & impairments

Wholesale, International Retail & Leasing


Loan portfolio (x 1,000) 25.7 +4%

Impaired loans 687 -5%

- in % of loans 2.7% -0.2%-pnt

Allowance 448 -7%


2014-I



Table 13: Leasing: Loans & impairments

• Dutch corporate clients with turnover >EUR 250mn • International focus on food- and agribusiness • Farm financing, community banking and F&A corporates • Rabo Direct Banking • 15,901 FTEs

• Net profit EUR 389mn (-45%) • Bad debt costs 35 bps (44 bps) • Loans EUR 89.9bn (+2%), of which EUR 12.8bn in the Netherlands • F&A lending 57% of total • Due to customers EUR 107bn (-1%) of which direct banking

EUR 29.7bn (+2%)

• De Lage Landen • Financial lease, operational lease, car lease, consumer finance • Increased focus on food- & agribusiness • 36 countries, 5,183 FTEs

• Net profit EUR 223mn (-4%) • Bad debt costs 47 bps (59 bps) • Lease portfolio EUR 31.3bn (+4%) of which loans EUR 25.7bn

(+4%) • F&A lease 32% of total

Wholesale and International Retail

Leasing


Loan portfolio

EUR billion Wholesale Rural & Retail TOTAL

Total International portfolio 98.7

• Int. Wholesale & Retail 44.7 32.4 77.1

- Europe excl. the Netherlands 12.4 2.2 14.6

- North America 17.7 11.3 29.0

- South America 5.0 2.8 7.8

- Australia & New Zealand 2.7 16.1 18.8

- Asia 6.8 - 6.8

- Africa 0.1 - 0.1

• Int. Leasing 21.6

Table 14: International loan portfolio

Global spread of activities

• 40 countries

• 766 foreign offices of which ca. 600 retail offices

• Loan portfolio international wholesale & retail EUR 77.1bn (+2%) • Wholesale (EUR 44.7bn) is 58% of total • Rural & Retail (EUR 32.4bn) is 42% of total

• Focus on food & agribusiness (EUR 50.8bn) is 66% of total international wholesale & retail

• International leasing portfolio EUR 25.2bn

• of which EUR 21.6bn loans


Loan portfolio

Domestic residential mortgage portfolio

• Low loan losses 5.4 bps • Loan-to-value ratio: 79.4% on average • NHG: 21% of mortgage portfolio • 93% of portfolio has (predominantly long-term) fixed interest rate • Number of delinquencies and foreclosures remains very low • Bank has first charge at default • Bank has full recourse to the borrower

Delinquencies, recovery procedure and foreclosures 2014-I in % of total number of domestic mortgages

100% 0.57% 0.35% 0.02%

Number of mortgage clients 1.2 million

>90 days past due in recovery procedure foreclosures (annual basis)

Contractual fixed interest rate period Rabobank mortgages

>10 years 26%

6-10 years 44%

4-5 years 16%

2-3 years 3%

fixed <1yr 4%

variable 7%


Loan portfolio


Loans 207,586 209,142 -1%

Impaired loans 774 894 -13%

- in % of loans 0.37% 0.43% -0.06%-pnt

Allowance 207 198 +5%

- in % of impaired loans 27% 22% +5%-pnt

2014-I 2013-I


in bps (annual basis) 5.4 bps 6.4 bps -1.0 bps

Table 15: Domestic residential mortgage portfolio


Loan portfolio

* Note

Please note that loan-to-value (LTV) is not the only factor determining the risks in Rabobank’s mortgage portfolio. There are a number of factors that can mitigate the potential risk of a mortgage being higher than the actual value of the house

• LTV figures do not take into account free savings accounts of the borrower

• LTV figures do not take into account securities and other assets of the borrower

• To cover premature death risk, the majority of clients have a life insurance, pledged to the bank

• An LTV in excess of 100% does not mean that the loan in question is impaired. As long as the borrower is able to meet debt service, the collateral value is less of an issue.

• By far most clients with an LTV>100% have a better than standard cost-to-income ratio so that they are able to continue fulfilling their mortgage obligations

Loan-to-value Guaranteed Other Total

0%-50% 1.5% 18.6% 20.1%

50%-60% 0.9% 7.5% 8.3%

60%-70% 1.1% 9.0% 10.2%

70%-80% 1.6% 8.4% 10.0%

80%-90% 2.2% 7.5% 9.8%

90%-100% 3.1% 8.4% 11.5%

100%-105% 2.6% 4.3% 6.9%

105%-110% 2.1% 3.6% 5.7%

110%-115% 1.8% 3.2% 5.0%

115%-120% 1.7% 2.9% 4.6%

120%-125% 1.0% 2.4% 3.3%

>125% 1.0% 3.6% 4.6%

20.6% 79.4% 100%

Average Loan-to-value in June 2014: 79.4% (Dec 2013: 80.7%)

Table 16: Loan-to-value domestic residential mortgage portfolio*


Loan-to-value domestic residential mortgages

Loan portfolio


F&A loan portfolio (x 1,000) Domestic retail 28.7 29.2 -2%

Domestic wholesale 2.6 3.0 -13%

Domestic leasing 0.3 0.3 0%

International retail 16.0 15.5 +3%

International wholesale 32.0 31.0 +3%

International leasing 8.9 8.0 +11%

Total group 88.5 87.0 +2%

F&A impairments domestic retail Impaired 1,236 1,238 0%

- in % of loans 4.3% 4.2% +0.1%-pnt

Allowance 387 350 +11%

- in % of impaired 31% 28% +3%-pnt

2014-I 2013-I

F&A bad debt costs domestic retail Bad debt costs 64 94 -32%

in bps (on annual basis) 44 bps 64 bps -20 bps

Table 17: F&A portfolio


Loan portfolio

F&A portfolio

• F&A Group portfolio EUR 88.5bn, 21% of total Group loan portfolio

• EUR 28.7bn, 10% of Domestic retail is in F&A

• EUR 50.8bn, 57% of Wholesale & int. retail is in F&A

• EUR 9.2bn, 36% of Leasing is in F&A

• F&A portfolio well diversified in:

• Subsectors • Geography • Links in the food supply chain

• Domestic market share 85%

Group F&A portfolio EUR 88.5bn Dairy 16%

Grains & oilseeds 17%

Animal protein 19%

Fruit & veg 10%

Farm inputs 7%

Food retail & foodservice

6%

Flowers 3%

Beverages 4%

Miscellaneous crops

2%

Sugar 2%

Other 14%

Investor Relations

Loan portfolio

Domestic retail F&A portfolio EUR 28.7bn Dairy 20%

Grains & oilseeds 5%

Animal protein 19%

Fruit & veg 14%

Farm inputs 5%

Food retail & foodservice

6%

Flowers 9%

Other 22%

35


Non-F&A loan portfolio (x 1,000) Domestic retail 61.5 63.0 -2%

Domestic Rabo Real Estate Group 18.1 18.3 -1%

Domestic wholesale 15.3 13.3 +15%

Domestic leasing 2.4 2.4 0%

Other domestic retail 0.5 0.7

International wholesale & retail 20.0 25.3 -21%

International leasing 13.1 12.6 +4%

Total group 130.9 135.6 -3%

Non-F&A impairments domestic retail Impaired 4,414 4,449 -1%

- in % of loans 7.2% 7.1% +0.1%-pnt

Allowance 1,392 1,623 -14%

- in % of impaired 32% 36% -5%-pnt

2014-I 2013-I

Non-F&A bad debt costs domestic retail Bad debt costs 459 470 -2%

in bps (on annual basis) 148 bps 146 bps +2 bps

Table 18: Non-F&A portfolio


Loan portfolio

Non-F&A portfolio

• Non-F&A Group portfolio EUR 130.9bn, 30% of total Group loan portfolio

• EUR 61,5bn, 21% of Domestic retail is in non-F&A

• EUR 35.3bn, 39% of Wholesale & int. retail is in non-F&A

• EUR 15.5bn, 60% of Leasing, is in non-F&A

• Non-F&A Portfolio well diversified in: • Subsectors • Geography

• Mainly SME lending

• Domestic market share: 42%

Group non-F&A portfolio EUR 130.9bn


Loan portfolio

Domestic retail non-F&A portfolio EUR 61.5bn

Lessors of real estate

19%

Finance & insurance (except

banks) 10%

Trade 12%

Professional services

6%

Construction (incl. Property

Dev.) 10%

Manufacturing 6%

Transportation & warehousing

5%

Health care 5%

Retail (excl. food) 4%

Other 23%

Lessors of real estate

16% Finance &

insurance (except banks)

5%

Trade 6%

Professional services

4% Construction

(incl. Property Dev.) 13%

Manufacturing 4%

Transportation & warehousing

6%

Health care 6%

Retail (excl. food) 4%

Other 36%

EUR million Loan portfolio (x 1,000)

Impaired Allowance Bad debt costs

Domestic Lessors of real estate June 2014 June 2014 June 2014 2014-I

Domestic retail 8.8 1,452 649 160

Rabo Real Estate Group 15.8 3,761 1,195 345

Total domestic 24.6 5,213 1,844 505

Domestic Property development

Domestic retail 1.8 597 339 21

Rabo Real Estate Group 1.0 131 41 11

Total domestic 2.8 728 380 32

ACC Loan Management* 1.0 2,286 1,574 60

Domestic + ACC Loan Management June 2014 / 2014-I* 28.4 8,227 3,798 597

Domestic + ACC Loan Management Dec 2013 / 2013-I* 28.4 6,941 3,246 354

Table 19: Commercial real estate lending


*) Lessors of real estate and property development

Loan portfolio

Commercial real estate: high impairments

Break-down of domestic lessors of real estate

Offices 20%

Residential 25%

Retail outlets 20%

Industrial 25%

Land 5%

Other 5%

• Commercial real estate financing in Domestic retail, Rabo Real Estate Group and ACC Bank

• Conservative valuation policy

• Domestic lessors of real estate loan portfolio EUR 24.6bn (-6%)

• Domestic property development loan portfolio EUR 2.9bn (-4%)

• ACC Loan Management EUR 1.0bn (-10%)


Loan portfolio

4 Equity, liabilities & funding • Well-balanced balance sheet • High quality equity base • IFRS equity versus qualifying capital • Capital strategy Rabobank. • Bail-in buffer EUR 51.6bn • Strong protection against Senior bail-in • Rabobank Certificates • (Grandfathered) Additional Tier 1 • Tier 2 • Senior contingent notes & Stress analysis Equity Capital Ratio • Liquidity buffer EUR 103bn • Excellent access to Senior unsecured funding • The public market: Euro benchmark issuance & other currencies • Short-term debt • Private placements • Preview FY2014



Assets Loans (incl. public sector) 462,739 455,909 +1%

Cash 40,612 43,039 -6%

Banks 40,980 40,787 +0%

Securities 53,209 56,780 -6%

Derivatives 45,335 39,703 +14%

Other 36,638 33,186 +10%

Total Assets 679,513 669,404 +2%

Equity & liabilities Equity 39,854 39,443 +1%

Due to customers 323,035 326,222 -1%

Long-term issued debt 163,694 164,935 -1%

Short-term issued debt 57,592 54,417 +6%

Banks 17,715 14,745 +20%

Derivatives 55,611 50,171 +11%

Other 22,012 19,471 +13%

Total equity & liabilities 679,513 669,404 +2%

Encumbered assets - in % of funded assets 4.1% 4.4% -0.3%-pnt

- according to EBA guidelines 6.6% 7.4% -0.8%-pnt

Table 20: Balance sheet


Equity, liabilities & funding

Well-balanced balance sheet

• Total assets EUR 679.5bn (+2%) • Negligible asset encumbrance – only 4.1% of funded assets is

secured funding; according to new EBA guidelines , asset encumbrance would be 6.6%

• Loan-to-deposit ratio 1.36

% of total % of total

Loans 463 68% Retained earnings + reserves+ minority interests Rabobank Certificates Additional Tier 1

26 6 8

4% 1% 1%

Equity 40 6%

Due to customers 323 48%

Long-term issued debt 163 24%

486 72%

Cash 41 6% Short-term issued debt (CD / CP) 58 8%

Banks 41 6% Banks 18 3%

Securities 53 8%

Short-term assets 135 20% Short-term liabilities 76 11%

Derivatives 45 7% Derivatives 56 8%

Other 37 5% Other 22 3%

Total 680 100% Total 680

100%

Balance sheet (June 2014) in EUR bn


• Total of due to customers plus long term funding is more than loan book

• Short-term assets (20%) much larger than short-term liabilities (11%)


High quality equity base

Equity EUR 39.9bn


Equity 39,854 39,443

- Retained earnings, reserves & minority Interests

25,511 25,086

- Rabobank Certificates

5,928 5,823

- (Grandfathered) Additional Tier 1

8,415 8,534

Table 21: Equity

Retained earnings,

reserves & minority interests

64%

Rabobank Certificates

15%

(Grandfathered) Additional Tier 1

21%



Table 22: IFRS equity versus qualifying capital

EUR million IFRS equity Qualifying capital

Retained earnings 28,118 27,066

Rabobank Certificates 5,928 5,928

Non-controlling interests 470 33

Reserves -3,077 -3,077

Regulatory adjustments -6,162

Transitional adjustments 3,401

Common Equity Tier 1-capital 27,189

Capital Securities & Trust Preferred Securities III-VI 8,415 7,283

Transitional adjustments -2,223

Tier 1-capital 32,249

Subordinated debt 10,971

Transitional adjustments -606

Total IFRS equity / qualifying capital 39,854 42,614


IFRS equity versus qualifying capital


Rabobank’s capital strategy focuses on comfortable levels of the Common Equity Tier 1-ratio and the Total capital ratio • Risk Weighted Assets: EUR 216.2bn (June 2014)

Common Equity Tier 1-ratio 12.6% • CET1-ratio was impacted negatively by

• Implementation of CRDIV in January 2014 • Increase of Risk Weighted Assets

• CET1-ratio was positively impacted by • Slight increase of Rabobank Certificates

• Target CET1-ratio December 2016: 14%

Total Capital ratio 19.7% • Total Capital ratio was impacted negatively by

• Implementation of CRDIV in January 2014, including haircut on grandfathered Additional Tier 1 instruments

• Increase of Risk Weighted Assets • Total Capital ratio was positively impacted by

• Slight increase of Rabobank Certificates • Newly issued Tier 2 capital

• Target Total Capital ratio December 2016: >20%

Capital strategy Rabobank Current and future capital structure in % of Risk Weighted Assets

10,7% 9,9%

2,8% 2,7%

3,1%

2,3%

3,2% 4,8%

0%

5%

10%

15%

20%

25%

Dec 2013 June 2014 Target Dec 2016

Tier 2-Capital

(Grandfathered) Additional Tier 1-Capital


Retained earnings & reserves

Common Equity Tier 1 14%

Total Capital >20%



EUR billion June 2014 Dec 2013

Retained earnings & reserves of which - retained earnings - reserves

24.9

28.1 -3.1

24.6

28.1 -3.5

Rabobank Certificates 5.9 5.8

(Grandfathered) Additional Tier 1 8.4 8.5

Tier 2 11.1 7.8

Senior Contingent Notes (SCNs) 1.2 1.2

Total bail-in buffer * 51.6 48.0

Table 23: Bail-in buffer

Bail-in buffer EUR 51.6bn* Bail-in buffer EUR 51.6bn*

• Rabobank has built a strong buffer, of 24% of RWA, which would protect senior unsecured bondholders in the unlikely event of bail-in of senior debt

0

10

20

30

40

50

60

dec-08 dec-09 dec-10 dec-11 dec-12 dec-13 jun-14

SCNs

T2

AT1

CET1

EUR bn

* Note Capital figures based on gross numbers. i.e. excluding CET1 deductions and including non-qualifying Tier 1 (grandfathered) and including amortising Tier 2; Bail-in buffer excluding Minority interests.



Strong protection against Senior bail-in

Potential impact of losses on Capital and Senior Unsecured*

0

50

100

150

200

250

June 2014

1% 2% 3% 4% 5% 6% 7% 8% 9% 10%

CET1

AT1

T2

SCNs

Loss Senior Unsecured (% of total Senior Unsecured)

Loss

Senior Unsecured

Loss in % of balance sheet total (EUR 675bn)

EUR bn

-10% -6%

-2%

• The large buffer of EUR 51.6bn serves as a strong protection against bail-in of Senior Unsecured bonds

• Senior bonds not affected until losses exceed EUR 51.6bn (7.5% of balance sheet total)

• Even if losses were to amount to 10% of balance sheet total (EUR 67bn) losses for Senior debt holders would be limited to 10%



* Note Capital figures based on gross numbers. i.e. excluding CET1 deductions and including non-qualifying Tier 1 (grandfathered) and including amortising Tier 2


Historical paid out distributions

• Rabobank Certificates are the most deeply subordinated capital instruments of Rabobank • 237,961,365 Rabobank Certificates outstanding, which represent EUR 5.9bn in Common Equity Tier 1 capital. • The quarterly intended pay out distribution on Rabobank Certificates is the higher of:

• 6.5% ,or • the three-monthly average on an annual basis of the effective return on the most recent 10 year Dutch state loan +150bps calculated based on a nominal value of EUR 25 divided by four

• Rabobank has the discretion not to pay a distribution on the Rabobank Certificates • Rabobank has been profitable in each of its 115+ years of existence and has never not declared a distribution on its Certificates


5.89% 6.00%

5.49% 5.23%

5.35% 5.17%

.4,99% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5% 5.2% 5.2%

6.5% 6.5% 6.5%

Average 10yr DSL + 1.5%

Higher of 10yr DSL + 1.5% or 6.5%

Average 10yr DSL

10yr most recent DSL


1st call date Issue date

CHF 750mn, 6.875%, Capital Securities Nov 2014 July 2009

AUD 250mn, applicable BBSW+0.67%, Trust Preferred Securities V Dec 2014 Oct 2004

AUD 250mn, 6.415%, Trust Preferred Securities VI Dec 2014 Oct 2004

USD 2bn, 8.375%, Capital Securities July 2016 Jan 2011

USD 755mn, 5.254%, Trust Preferred Securities III Oct 2016 Oct 2004

USD 2bn, 8.4%, Capital Securities May 2017 Nov 2011

NZD 900mn, applicable 1-yr swap rate + 0.76%, Capital Securities Oct 2017 Oct 2007

GPB 350mn, 5.556%, Trust Preferred Securities IV Dec 2019 Oct 2004

CHF 350mn, 5.5%, Capital Securities June 2018 June 2008

ILS 323mn, 5.50%, Capital Securities July 2018 July 2008

NZD 280mn, applicable 5-yr swap rate + 3.75%, Capital Securities June 2019 May 2009

USD 2.9bn, 11%, Capital Securities June 2019 June 2009

GBP 250mn, 6.91%, Capital Securities June 2038 June 2008

Table 24: (Grandfathered) Additional Tier 1

• Total Additional Tier 1: EUR 8.4bn

• All currently outstanding Additional Tier 1 instruments are being grandfathered under CRDIV

(Grandfathered) Additional Tier 1




• Tier 2 capital increased to EUR 11bn

• All Tier 2 instruments are fully CRD IV compliant

Tier 2

Table 25: Tier 2 issues

Tier 2 issues 1st call date / maturity Issue date

EUR 1bn, 5.875% May 2019 May 2009

EUR 1bn, 3.750% Nov. 2020 Nov. 2010

EUR 2bn, 2.500% May 2021 / 2026 May 2014

EUR 1bn, 4.125% Sept. 2022 Sept. 2012

USD 1.5bn, 3.950% Nov. 2022 Nov. 2012

USD 1.75bn, 4.625% Dec. 2023 Nov. 2013

EUR 1bn, 3.875% July 2023 July 2013

GBP 500mn, 5.250% Sept. 2027 Sept. 2012

GBP 1bn, 4.625% May 2029 May 2014

USD 1.25bn, 5.750% Dec. 2043 Nov. 2013


Senior contingent notes

• March 2010: issue of EUR 1.25bn benchmark 10 year fixed rate senior note

• Annual coupon 6.875%

• Trigger: Equity Capital Ratio (ECR) <7%

• ECR June 2014: 15.7%

• In the unlikely event that ECR were to fall below 7%, write-down to 25% of par and immediate repayment of this redemption price, thus strengthening Rabobank’s capital



Stress analysis Equity Capital Ratio

Stress analysis ECR

Retained Earnings + Member Certificates 28.1bn + 5.9bn ECR June 2014 = ------------------------------------------------------- = -------------------------- = 15.7% Risk Weighted Assets 216.2bn

• Trigger of ECR< 8% is hit if * losses made > EUR 17bn or * RWA increase > EUR 210bn • Trigger of ECR< 7% is hit if * losses made > EUR19bn or * RWA increase > EUR 270bn

Change in Equity Capital RWA change 30% 20% 10% 0% -10% -20% -30% -40% -50% -60% RWA change

-30% 29,2% 27,0% 24,7% 22,5% 20,2% 18,0% 15,7% 13,5% 11,2% 9,0% -30% -20% 25,6% 23,6% 21,7% 19,7% 17,7% 15,7% 13,8% 11,8% 9,8% 7,9% -20% -10% 22,7% 21,0% 19,2% 17,5% 15,7% 14,0% 12,2% 10,5% 8,7% 7,0% -10%

0% 20,5% 18,9% 17,3% 15,7% 14,2% 12,6% 11,0% 9,4% 7,9% 6,3% 0% 10% 18,6% 17,2% 15,7% 14,3% 12,9% 11,5% 10,0% 8,6% 7,2% 5,7% 10% 20% 17,1% 15,7% 14,4% 13,1% 11,8% 10,5% 9,2% 7,9% 6,6% 5,2% 20% 30% 15,7% 14,5% 13,3% 12,1% 10,9% 9,7% 8,5% 7,3% 6,1% 4,8% 30% 40% 14,6% 13,5% 12,4% 11,2% 10,1% 9,0% 7,9% 6,7% 5,6% 4,5% 40% 50% 13,6% 12,6% 11,5% 10,5% 9,4% 8,4% 7,3% 6,3% 5,2% 4,2% 50% 60% 12,8% 11,8% 10,8% 9,8% 8,9% 7,9% 6,9% 5,9% 4,9% 3,9% 60% 70% 12,0% 11,1% 10,2% 9,3% 8,3% 7,4% 6,5% 5,6% 4,6% 3,7% 70% 80% 11,4% 10,5% 9,6% 8,7% 7,9% 7,0% 6,1% 5,2% 4,4% 3,5% 80% 90% 10,8% 9,9% 9,1% 8,3% 7,5% 6,6% 5,8% 5,0% 4,1% 3,3% 90%

100% 10,2% 9,4% 8,7% 7,9% 7,1% 6,3% 5,5% 4,7% 3,9% 3,1% 100%

30% 20% 10% 0% -10% -20% -30% -40% -50% -60% Change in Equity Capital




Liquidity buffer (after regulatory haircuts)

Liquidity buffer 102.7 121.3 -15%*

Cash 36.6 38.7 -5%

Government debt 38.3 39.0 -2%

Other central bank eligible assets

27,8 43,7 -36%*

Funding Due to customers 323.0 326.2 -1%

Domestic - Private individuals - Corporate

137.6 122.8

138.2 123.6

0%

-1%

International - Private individuals - Corporate

of which IDB

25.4 37.2

29.7

26.4 38.0

29.1

-4% -2%

+2%

Wholesale funding 221.3 219.4 +1%

Short term issued debt (CD/CP) 57.6 54.4 +6%

Long term issued debt - of which subordinated

163.7 11.1

164.9 7.8

-1% +42%

Table 26: Liquidity

* Note The decrease is mainly a result of adjusted DNB haircuts. DNB now assigns, for regulatory reporting, lower liquidity values to externally held securities (ABS) and securities held internally that are backed by residential mortgages provided by Rabobank (RMBS). Despite these lower assigned values, the risk profile did not deteriorate.



Liquidity buffer EUR 103bn

• Liquidity buffer of EUR 103bn (EUR 121bn) comfortably covers short-term debt issued

• The decrease by EUR 18bn is mainly a result of adjusted DNB haircuts. DNB now assigns lower liquidity values to externally held securities (ABS) and securities held internally that are backed by residential mortgages provided by Rabobank (RMBS).

• Despite these lower assigned values, the risk profile did not deteriorate.

• LCR at 161% (126%)

• NSFR at 119% (114%)

Liquidity buffer EUR 103bn

Liquidity buffer and Short-term issued debt

Cash 36%

Government debt 37%

Other central bank eligible

debt 27%

0

20

40

60

80

100

120

Liquidity buffer Short-term issued debt



Table 27: Funding highlights January to August 2014 Table 28: Funding highlights 2013


Currency Size Features

EUR 3.4bn 1-year Floating Rate

EUR 1.75bn 1.5-year Floating Rate

EUR 1bn 5-year Floating Rate

EUR 1.5bn 5-year Fixed Rate


USD 1.75bn 5-year Fixed Rate

GBP 3bn 1-year Floating Rate

AUD 600mn 5-year Fixed Rate

CHF 700mn 2 & 7-year Floating & Fixed Rate

JPY 100.3bn 3, 5 & 10-year Samurai Fixed & Floating

AUD 675mn 4, 6 & 7-year Fixed Rate

CAD 125mn 5-year Fixed Rate

NOK 2.1bn 4 & 5-year Fixed Rate

NZD 750mn 3, 4 & 5-year Fixed Rate

SEK 750mn 3-year Floating Rate

TRY 475mn 2, 3 & 7-year Fixed Rate

ZAR 900mn 4, 5 & 7-year Fixed Rate


EUR 750mn 3-year Floating Rate

EUR 4.8bn 1-year Floating Rate

EUR 1.5bn 10-year Fixed Rate


USD 1bn 3-year Floating Rate

USD 1.5bn 5-year Fixed Rate

GBP 2.5bn 1-year Floating Rate

AUD 650mn 4-year Domestic deal

CHF 300 mn 7-year Fixed Rate

JPY 89.1bn 3 & 5-year Samurai Fixed & Floating

JPY 101.5bn 3 & 5-year Samurai Fixed & Floating

MXN 3.3bn 3, 4 & 5-year Fixed Rate

NOK 500mn 5-year Fixed Rate

NZD 100mn 5-year Fixed Rate

SEK 1bn 1 & 3-year Fixed Rate

TRY 625mn 3 & 4-year Fixed Rate

ZAR 1.4bn 3, 4 & 6-year Fixed Rate


Excellent access to Senior unsecured funding

• Rabobank issued over EUR 18bn of medium term funding in Senior unsecured format during 2014-I

• Average maturity of the funding portfolio is 4.5 years with more than EUR 40bn maturing in 2020 or later

• The global funding team operates close to the regional investor base

• Rabobank is committed to liquid benchmark curves in the main currencies

• All Rabobank issues have been well received with our investors and provide good secondary performance

Maturity profile senior unsecured portfolio (Aug 2014)

Currency breakdown (in volume, Aug 2014)

EUR 53%

USD 14%

GBP 9%

AUD 7%

JPY 6%

Other 11%

0

5

10

15

20

25

30

35

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023+

EUR mn



Year of issue Maturity Coupon Issue size (EUR)

2010 16-Feb-15 3.0% 3bn

2006 18-Jan-16 3.375% 1.85bn

2011 20-Apr-16 3.875% 3.5bn

2009 5-May-16 4.375% 2.2bn

2007 16-Jan-17 4.25% 3bn

2010 21-Apr-17 3.375% 2bn

2008 15-Jan-18 4.75% 3.425bn

2011 17-Oct-18 3.5% 1.5bn

2014 22-Jan-19 1.75% 1.5bn

2010 14-Jan-20 4.125% 3.5bn

2011 12-Jan-21 4.125% 2bn

2006 7-Jun-21 4.375% 1.25bn

2012 11-Jan-22 4.0% 1.75bn

2007 6-Jun-22 4.75% 2.55bn

2013 22-May-23 2.375% 1.5bn

2010 14-Jul-25 4.125% 2.65bn

Table 29: EUR benchmark curve



The public market: Euro benchmark issuance

Rabobank EUR senior spread performance (basis points over midswaps)

• Rabobank is committed to a liquid EUR benchmark curve in Senior unsecured format • The EUR benchmarks have shown good liquidity in times of stress • The curve consists of 16 maturities with a minimum size of EUR 1bn each and maturities up until 2025 • 10 of these issues have an issue size of EUR 2bn or larger • In 2009 Rabobank issued the largest ever EUR benchmark done by a financial institution: a EUR 5bn, 5-year deal • Rabobank issued a new EUR 1.5bn 5-year at MS+63 in January 2014 and the trade shows good secondary performance.

0

10

20

30

40

50

60

70

80

90

mei-13 jun-13 jul-13 aug-13 sep-13 okt-13 nov-13 dec-13 jan-14 feb-14 mrt-14 apr-14 mei-14 jun-14 jul-14

Secondary Trading Performance RABOBK 1.5 bn 2.375% 2013 - 10y

RABOBK 1.5 bn 1.75% 2014 - 5y




AUD 14.1bn Eurobond + Kangaroo

CAD 5.4bn Eurobond + Maple

CHF 4.8bn Eurobond

CNY 1bn Dimsum bond

GBP 10.5bn Eurobond

HKD 2.6bn Eurobond

HUF 3.9bn Eurobond

JPY 1,127bn Eurobond + Samurai

MXN 14.2bn Eurobond

NOK 15.2bn Eurobond

NZD 4.3bn Eurobond + Kauri

SEK 2.8bn Eurobond

TRY 3.7bn Eurobond

USD 27.6bn Eurobond + 144a + 3a2

ZAR 11.4bn Eurobond

Table 30: Other currencies, public market (in local currency)



The public market: other currencies

• Rabobank is an active player in institutionalized markets like USD, GBP, CHF, AUD and JPY

• With funding officers based in Utrecht, New York, Hong Kong, Sydney and Tokyo we operate close to the markets

• Most currency exposure is swapped back to EUR

• Rabobank is a well established issuer in retail markets by being active in these markets over many years

• Issuance is done in over 20 different currencies giving investors opportunities to diversify currency risk in their portfolios

• In the current low-yield environment, Rabobank continues to experience high demand in niche currencies (e.g. NZD, NOK, ZAR)



Programme Currency

Rabobank Nederland, (FCD) Multi currency

Rabobank Nederland, (ECP & ECD) Multi currency

Rabobank Nederland, Australia Branch (CD) AUD

Rabobank Nederland, New Zealand Branch (CD) NZD

Rabobank Nederland, Australia Branch (ECP) Multi currency

Rabobank Nederland, Hong Kong Branch (CD) Multi currency

Rabobank Nederland, London Branch (CD) Multi currency

Rabobank Nederland, New York Branch (YCD) USD

Rabobank USA Financial Corporation (CP) USD

Nieuw Amsterdam Receivables Corporation (US ABCP) USD

Nieuw Amsterdam Receivables Corporation (E ABCP) Multi currency

Table 31: Short-term funding programmes



Short-term debt

• Total short term debt (CP, CD, ABCP) outstanding at June 2014: EUR 57.6bn (equivalent)

• Rabobank is a flexible and frequent issuer with priority given to: • Active maturity profile management • Diversifying sources of funds

• To ensure response to investor requirements in all time zones,

short-term funding teams operate in several locations including five key hubs: • Utrecht • London • New York • Sydney • Hong Kong

• Issuance is offered in:

• Multiple currencies • A variety of maturities • Flexible ticket sizes • Fixed and Floating rate

• Rabobank continues to see a good inflow of funding due to its

high creditworthiness

Maturity profile


CD 44.1 42.8 +3%

CP / ABCP 13.5 11.6 +16%

Total short term debt 57.6 54.4 +6%

Table 32: Short-term funding

0

5

10

15

20

25

< 5 5-30 31-90 91-180 181-365 > 365

EUR bn


days


Private placements

• More than EUR 5.5bn raised in 2014 YtD in private placements, of which EUR 1.5bn are structured MTNs

• Over 130 transactions completed in 2014 with a broad group of dealers active in all global markets

• All exposures in other currencies are swapped back to floating Euro rate

• In 2013, a total amount of EUR 7.7bn was issued in Private Placements. The total number of transactions was over 250

• Rabobank is a prominent issuer in the structured MTN market and has the ability to issue in the most innovative products

• For example, Rabobank can issue in possible structures like • Plain Vanilla – FRN • Plain Vanilla – Fixed • Interest Rate Linked • Commodity Linked • Fund/Equity Linked • Inflation Linked • FX Linked



Preview FY2014

• Slow recovery of Dutch economy

• Stable level of lending and amounts due to customers

• Further strengthening of Rabobank’s capital base

• Rabobank’s liquidity position well above Basel III requirements

• A continued strategic approach to benchmark funding, especially in institutional markets in EUR, USD, AUD and JPY


Preview FY 2014

1

Investor Relations – Rabobank Group

Telephone: +31 30 712 2401 P.O. Box 17100, UCR 315 E-mail [email protected] 3500 HG Utrecht Internet www.rabobank.com/IR The Netherlands Bloomberg RABO NA

More information

mailto:[email protected]

http://www.rabobank.com/IR

Date post:	16-May-2015
Category:	Investor Relations
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