For 1H 2015, Rabobank reported a net profit of EUR 1.5bn, up from EUR 1.1bn in 1H 2014. The improvement was primarily due to significantly lower loan impairment charges as the Dutch economy showed stronger signs of recovery (1H 2015: EUR 356m, 1H 2014: EUR 1.2bn). The group’s capital and liquidity positions remain sound. The CRD IV transitional CET1 and leverage ratios were 13.2% (11.8% fully loaded) and 5.1% (3.9% fully loaded), respectively. The LCR and NSFR were 130% and 115%, respectively.

The group’s ratings are driven by its leading position in the Netherlands as a relatively low risk cooperative bank. We view positively management’s efforts to adapt the group and its business to a changing operating environment. Initiatives are being taken to improve the delivery of services at a lower cost. As well, the group expects to transition to a new governance model from January 2016 in order to increase effectiveness and efficiency.

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