Press conference

21 August 2014

Interim financial figures 2014

Interim financial figures 2014 Rinus Minderhoud, Chairman of the Executive Board

Interim financial figures 2014 – analysis Bert Bruggink, CFO

Balance sheet

In billions of euros 30-Jun-14 31-Dec-13 30-Jun-14 31-Dec-13

Cash and cash Due to

equivalents 41 43 customers 323 326

Loans to customers 463 456 Debt securities in issue 194 195

Financial assets 53 57 Due to other banks 18 15

Due from other Derivative financial instruments

banks 41 41 and other trade liabilities 56 50

Derivative financial instruments 45 40 Other liabilities 49 43

Other assets 37 33 Equity 40 39

Total assets 680 669 Total liabilities 680 669

Lending

420

425

430

435

440

31-Dec-13 Private individuals TIS Food and agri 30-Jun-14

Private sector loan portfolio in billions of euros

Loan portfolio EUR 433 billion; -0.3%

• Slight growth at Wholesale, Rural & Retail, De Lage Landen and Obvion

• FGH Bank virtually stable and decrease at local Rabobanks

-1% -0% +2%

Funding (1) Amounts due to customers and liquidity ratios

310

315

320

325

330

31-Dec-13 Savings Other 30-Jun-14

Amounts due to customers in billions of euros

-2% 0%

Amounts due to customers EUR 323 billion; -1%

• Private savings EUR 148 billion; -2%

• Loan-to-deposit ratio 1.36 (1.35)

• Net stable funding ratio; NSFR 119% (114%)

• Liquidity coverage ratio; LCR 161% (126%)

Funding (2) Liquidity position at comfortable level

In billions of euros 30-Jun-14 31-Dec-13 Change

Domestic retail banking 214 216 -2

Wholesale and international retail banking 107 108 -1

Other group entities 2 2 0

Amounts due to customers 323 326 -3

Wholesale funding 221 219 +2

Liquidity position 103 121 -19

Equity

In billions of euros

Equity at 31-Dec-13 39.4

Net profit +1.1

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

Retained earnings +0.5

Issuance of Rabobank Certificates +0.1

Redemption of Capital Securities -0.2

Equity at 30-Jun-14 39.9

Capital (1) Strategy

10.7% 9.7% 9.8% 12.0%

2.8% 2.8% 2.8% 2.0%

3.1% 2.5% 2.3%

3.5% 3.2%

3.5% 4.8% 4.5%

0%

5%

10%

15%

20%

25%

31 December2013

1-1-2014(CRD IV)

30-6-2014(CRD IV)

Target 2016

In percentages of RWA

CET1 excluding certificates Rabobank Certificates

Additional tier 1 Tier 2

• Target capital ratio >20%;

2014 H1: 19.7%

• Target CET1 ratio 14%;

2014 H1: 12.6%

Capital (2) Improved capital position

• Transition to new pension scheme

• Rabobank Member Certificates converted into Rabobank Certificates

• Increased amount of tier 2 capital

• Sale of subsidiaries

• Stricter regulatory requirements - CRD IV

Development of capital ratios Improvement of ratios in first half of 2014

0

4

8

12

16

20

24

2005 2006 2007 2008 2009 2010 2011 2012 2013 1-1-2014(CRD IV)

30-6-2014(CRD IV)

Capital ratios in percentages

Common equity tier 1 ratio Tier 1 ratio Capital ratio

Financial results Rabobank Group

In millions of euros 30-Jun-14 30-Jun-13 change

Interest 4,522 4,453 +2%

Commission 931 1,046 -11%

Other results 945 956 -1%

Total income 6,398 6,455 -1%

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

Value adjustments 1,188 1,106 +7%

Taxation and resolution levy 184 97

Net profit from continued operations 1,080 1,012 +7%

Net profit from discontinued operations - 98

Net profit 1,080 1,110 -3%

Net profit by business segment

In millions of euros 30-Jun-14 30-Jun-13 change

Domestic retail banking 341 615 -45%

Wholesale and international retail banking 389 494 -21%

Leasing 223 232 -4%

Real estate -90 -189

Other 217 -42

Rabobank Group 1,080 1,110 -3%

Resolution levy 214 -

Profit excluding resolution levy 1,294 1,110 +17%

Operating expenses Operating expenses down 7% compared to 2013 H1

0

1000

2000

3000

4000

5000

6000

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

In millions of euros

• Efficiency ratio improved by 4.0 percentage points to 61.7%

• Further decrease of number of staff at local Rabobanks

Net interest income Net interest income up 2% compared to 2013 H1

0

1000

2000

3000

4000

5000

6000

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

In millions of euros

• Improvement of net interest income at domestic retail banking

Bad debt costs Above long-term average

0

10

20

30

40

50

60

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014-I

In basis points of average lending

Bad debt costs

10-year rollingaverage

• Bad debt costs 54 (full-year 2013: 59) bp; long-term average 32 bp

• Increase in bad debt costs mainly in real estate segment

Residential mortgages in the Netherlands 48% of lending; 5% of value adjustments

30-Jun-14

31-Dec-13

Residential mortgages in billions of euros

30-Jun-14

30-Jun-13

Value adjustments in millions of euros

Residential mortgages EUR 207.6 (209.1) billion

• Decrease due to additional repayments

• 20.6% (20.3%) of portfolio financed with National Mortgage Guarantee NHG

• Loan-to-value 79.4% (80.7%)

• Bad debt costs 5 (6) basis points

209.1

68

56

207.6

Commercial real estate in the Netherlands Write-downs versus value adjustments

0

100

200

300

400

500

600

700

800

900

2010 2011 2012 2013 2014-I

In millions of euros

Value adjustments Write-downs

Domestic retail banking Net profit EUR 341 million; -45%

30-Jun-14

30-Jun-13

Net profit in millions of euros

30-Jun-14

31-Dec-13

In billions of euros

Amounts due to customers Loan portfolio

• Result of domestic retail banking impacted mainly by resolution levy

• EUR 183 million levy

• Excluding this levy 15% decrease rather than 45%

615

215.7 303.1

214.0 298.8

341

• Loan portfolio EUR 298.8 billion; -1%

• Amounts due to customers EUR 215.7 billion; -1%

Wholesale and international retail Net profit EUR 389 million; -21%

30-Jun-14

30-Jun-13

Net profit in millions of euros

30-Jun-14

31-Dec-13

In billions of euros

Amounts due to customers Loan portfolio

• Value adjustments down

• De-risking

• Lower gross result and higher taxation

494

389

108.5 87.8

107.3 89.9

• Loan portfolio EUR 89.9 billion; +2%

• Share of food and agri in portfolio 57% (56%)

• Amounts due to customers EUR 107.3 billion; -1%

Leasing Net profit EUR 223 million; -4%

30-Jun-14

30-Jun-13

Net profit in millions of euros

30-Jun-14

31-Dec-13

Lease portfolio in billions of euros

• Net interest income down slightly

• Lower level of value adjustments

232

223

30.2

31.3

• Lease portfolio EUR 31.3 billion; +4%

• Share of food and agri in portfolio 32% (30%)

Real estate Net loss EUR 90 million

30-Jun-14

30-Jun-13

Result of Rabo Real Estate Group in millions of euros • High level of value adjustments in current year

• Last year also included impairments on land positions and revaluations of land operations

-189

-90

7341

17200

8982

17800 30-Jun-14

31-Dec-13

In billions of euros

Loan portfolio

• Number of houses sold 2,562; +46%

• Loan portfolio EUR 19.6 billion; +1%

19.4

19.6

23

Thank you for your attention

Interim financial figures 2014 Interim financial figures 2014