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Press conference

August 20th, 2015

Interim financial information for 2015

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Interim financial information for 2015 Wiebe Draijer, Chairman of the Executive Board

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G Higher profit due to economic recovery • Strong financial results

• Sound financial position

• Customer satisfaction improves

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Priorities

• Customer focus

• Cost reduction

• Management model

• Strategy

• Capital/balance sheet management

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Interim financial information 2015 – analysis Bert Bruggink, CFRO

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Balance sheet

In billions of euros 30-06-2015 31-12-2014 30-06-2015 31-12-2014

Cash and Amounts due

cash equivalents 43 43 to customers 328 326

Loans and advances

to customers 467 462 Debt securities in issue 186 189

Financial assets 46 48 Due to banks 21 18

Loans and advances to Derivatives and other

banks 42 46 trade liabilities 58 68

Derivatives 50 57 Other liabilities 41 41

Other assets 27 25 Equity 41 39

Total assets 675 681 Total liabilities 675 681

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Lending

420

425

430

435

31-12-2014 Private individuals TIS Food and agri 30-06-2015

Private sector loan portfolio in billions of euros

Loan portfolio EUR 434 billion; +1%

• Increase at Wholesale, Rural & Retail influenced by deprecation of euro

• Decline at local Rabobanks and FGH Bank

-0% +0% +5%

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Funding (1) Amounts due to customers and liquidity ratios

315

320

325

330

31-12-2014 Private savings Other 30-06-2015

Amounts due to customers in billions of euros

+1% +0%

Amounts due to customers EUR 328 billion; +1%

• Private customer savings EUR 144 billion; +1%

• Loan-to-deposit ratio of 1.32 (1.32)

• Liquidity Coverage Ratio; LCR 130% (144%)

• Net Stable Funding Ratio; NSFR 115% (115%)

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Funding (2) Strong liquidity position

In billions of euros 30-06-2015 31-12-2014 Change

Domestic retail banking 212 209 +3

Wholesale and international retail banking 115 116 -1

Other entities 1 1 0

Amounts due to customers 328 326 +2

Wholesale funding 212 216 -4

Liquidity buffer (HQLA) 81 80 +1

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Equity

In billions of euros

Equity at 31-12-2014 38.9

Net profit +1.5

Payments on certificates, hybrid capital and other non-controlling interests -0.6

Reserve capacity +0.9

Issue of additional tier 1 capital +1.5

Other changes +0.1

Equity at 30-06-2015 41.4

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Capital Strategy

10.8% 10,4% 10.5% 12.0%

2.8% 2.8% 2.7% 2.0% 2.4% 2.3% 2.9% 3.5% 5.3% 5.3% 5,4%

7.5%

0%

4%

8%

12%

16%

20%

24%

28%

31-12-2014 01-01-2015 30-06-2015 Adjusted inconnection with

TLAC

In percent of RWA

CET1 excluding certificates Rabobank Certificates

Additional tier 1 Tier 2

• LT target total capital ratio 25%;

2015 H1: 21.5%

• Target CET1 ratio 14%;

2015 H1: 13.2%

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Development of capital ratios Improved capital ratio in 2015 H1

0

4

8

12

16

20

24

2006 2007 2008 2009 2010 2011 2012 2013 2014 30-06-2015

Capital ratios in percent

Common equity tier 1-ratio Tier 1-ratio Total capital ratio

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Financial results Rabobank Group

In millions of euros 30-06-2015 30-06-2014 change

Net interest income 4,482 4,522 -1%

Net fee and commission income 962 931 +3%

Other income 883 945 -7%

Total income 6,327 6,398 -1%

Total operating expenses 3,833 3,946 -3%

Loan impairment charges 356 1,188

Resolution levy and contribution to resolution fund 121 214 -43%

Operating profit before taxation 2,017 1,050 +92%

Taxation 495 -30

Net profit 1,522 1,080 +41%

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Net profit Per business division

In millions of euros 30-06-2015 30-06-2014 change

Domestic retail banking 1,073 341 +732

Wholesale and international retail banking* 310 389 -79

Leasing 247 223 +24

Real Estate 98 -90 +188

* Excluding goodwill impairment for RNA

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Operating expenses Despite upward currency effects, expenses are down 3% compared to 2014 H1

0

1000

2000

3000

4000

5000

6000

2011-I 2011-II 2012-I 2012-II 2013-I 2013-II 2014-I 2014-II 2015-I

In milions of euros

Libor

• Efficiency ratio improves by 1.1 percentage points to 60.6%

• Further decline in workforce at local Rabobanks

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Net interest income Balance sheet declines 1% in H1 and net interest income also down by 1% compared to 2014 H1

1,00%

1,05%

1,10%

1,15%

1,20%

1,25%

1,30%

1,35%

1,40%

1,45%

1,50%

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

2010-I 2010-II 2011-I 2011-II 2012-I 2012-II 2013-I 2013-II 2014-I 2014-II 2015-I

In millions of euros

Net interestincome (l.h. axis)

Net interestincome (related toaverage balancesheet total; r.h.axis)

• Recovery of margins on loans at local Rabobanks

• Bank BGZ does no longer contribute to net interest income and margin pressure at Wholesale, Rural & Retail

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Loan impairment charges Below the long-term average

0

10

20

30

40

50

60

70

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015-I

In basis points of average lending

Loan impairmentcharges

10-year movingaverage

• Loan impairment charges 16 (2014 H1: 54; H2: 65; FY 60) bp; long-term average 36 bp

• Decline occurs mainly at local Rabobanks and FGH Bank

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Residential mortgages in the Netherlands 47% of lending; 19% of loan impairment charges

30-06-2015

31-12-2014

Residential mortgages in billions of euros

30-06-2015

31-12-2014

Loan impairment charges in millions of euros

Residential mortgages EUR 204.0 (205.0) billion

• Contraction due to additional repayments

• 21% (21%) portfolio funded by NHG

• Loan-to-value 77% (78%)

• Excluding non-recurring effects, loan impairment charges amount to EUR 66 million (6 basis points)

• 2014 H1: EUR 56 million (5 basis points)

205.0

56

66

204.0

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Commercial real estate in the Netherlands Write-offs versus loan impairment charges

0

100

200

300

400

500

600

700

800

900

2011 2012 2013 2014 2015-I

In millions of euros

Loan impairment charges Write-offs

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Domestic retail banking Net profit EUR 1,073 million

30-06-2015

30-06-2014

Net profit in millions of euros

30-06-2015

31-12-2014

In billions of euros

Amounts due to customers Loan portfolio

• Sharp fall in loan impairment charges

• Lower operating expenses

• Last year resolution levy for SNS, this year contribution to resolution fund

341

208.9 289.8

212.4 287.0

1,073

• Loan portfolio EUR 287.0 billion; -1%

• Amounts due to customers EUR 212.4 billion; +2%

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Wholesale and international retail Net profit EUR 310 million

30-06-2015

30-06-2014

Netto profit in million of euros

30-06-2015

31-12-2014

In billions of euros

Amounts due to customers Loan portfolio

• Private equity and reduction of illiquid assets make a positive contribution

• Loan impairment charges increase

389

310*

115.8 95.2

114.6 101.3

• Loan portfolio EUR 101.3 billion; +6%

• Share of food and agri in portfolio 59% (58%)

• Amounts due to customers EUR 114.6 billion; -1%

* Excluding goodwill impairment for RNA

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Leasing Net profit EUR 247 million

30-06-2015

30-06-2014

Net profit in millions of euros

30-06-2015

31-12-2014

Lease portfolio in billions of euros

• Net interest income up

• Loan impairment charges down

223

247

33.0

34.9

• Lease portfolio EUR 34.9 billion; +6%

• Share of food and agri in portfolio 32% (32%)

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Real estate Net profit EUR 98 million

30-06-2015

30-06-2014

Net profit in millions of euros

• Home sales at higher level

• Loan impairment charges the determining factor for earnings recovery

-90

98

7341

17200

8982

17800 30-06-2015

31-12-2014

Loan portfolio in billions of euros

• Number of home sales 3,147; +23%

• Loan portfolio EUR 16.3 billion; -2%

• Assets under management EUR 6.2 billion; -3%

16.7

16.3

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Outlook Net profit in H1 not indicative for H2

24

• Customers will continue to make relatively large mortgage repayments and spend their holiday allowances

We therefore expect a slight decline in lending and amounts due to customers in H2

• The bank tax and contribution to DGS will lead to additional costs in H2

• Loan impairment charges were relatively low in H1

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25

Thank you for your attention

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Interim financial information for 2015 Interim financial information for 2015