Rabobank Posts a Net Result of EUR 5,163 Million in 2024

Chair of the Managing Board Stefaan Decraene: “The past year people around the world continued to face a volatile world with economic challenges and geopolitical uncertainty. Our cooperative bank wants to remain a stable factor for our customers in this dynamic context. To make sure that we will remain the steady partner for our customers we have reshaped various parts of our organization to strengthen our customer focus.

“Being a cooperative bank means that we can seize opportunities to do more for our customers and society by offering unique products. Helping them build a more sustainable and financially healthy future. The fact that we are market leader in the mortgage and savings markets in the Netherlands is proof that our products and services resonate with our customers. For example, this year we were the first bank in the Netherlands to offer our mortgage customers an automatic sustainability interest discount during the fixed interest rate period. This discount is offered to customers once their home has improved to an energy label A or better, providing a discount to over 70,000 customers. Additionally, the deposits for our unique savings product ‘Rabo TijdslotSparen’ grew from EUR 7.2 billion last year to EUR 23.1 billion this year.

“Our 2.3 million members are the eyes and ears of our bank in society. In 2024 almost 1,200 active members came together during “Our Day” to discuss where and how our cooperative bank can make a difference. Their insights allowed us to guide our community support and provide almost EUR 45 million for local initiatives throughout the Netherlands. Last year a record breaking half a million members participated in Rabo ClubSupport and divided nearly EUR 16 million over 33,000 clubs and associations.

“I want to thank our customers and members for their continued trust last year. Together with the hard work and commitment of our employees, we have been able to deliver these strong results. I’m proud to see that our employee engagement remains high during these turbulent times. We are confident that we can achieve our ambitions to support our customers, and contribute to future-proof food and energy systems and foster financially healthy communities.”

In 2024, Rabobank’s financial results remained strong, achieving a net profit of EUR 5,163 million compared to EUR 4,377 million last year. This was driven by higher volumes at all our commercial segments, interest rates supporting strong net interest income, low loan impairment charges and significantly lower regulatory levies.

Total income was up by 5% mainly driven by business growth. Across our business segments net interest income increased, positively supported by higher income on capital. Within Domestic Retail Banking (DRB) net interest income was relatively stable, with margins on new lending affected by the continued competitive environment while margins on new mortgages are recovering. Deposit margins were somewhat compressed compared to the elevated levels in 2023. Wholesale & Rural (W&R) extended more loans, largely driven by sustainable loans for renewable energy clients and projects. DLL continued to grow with higher new business volumes. Overall, this supported our net interest income in 2024. Both DRB and W&R were able to increase net fee and commission income resulting in a total increase of 10%. DRB saw higher revenues from payments, insurance and investment products as well as from both mortgage and business lending. W&R benefited from higher fee income from our lending activities. Other income grew despite Rabo Investments income being down compared to 2023, following negative revaluations and fewer exits. BPD in the Netherlands, contrary to the still lagging German operations, showed a recovery in transaction numbers and margins.

Total operating expenses rose by 6%, reflecting the impact of the collective labor agreement and a higher average staff level, mainly in our IT and Financial Economic Crime (FEC) departments. However, the remediation program is nearing completion and as of the second half of 2024, FEC costs and the number of employees dedicated to FEC are on a downward trend, and this trend is expected to continue in the coming years.

Loan impairment charges on financial assets were EUR 468 million, lower than last year (2023: EUR 727 million), reflecting the sound quality of our loan portfolio. DRB saw a net release of EUR 166 million due to the robust Dutch economy, W&R’s loan impairment charges decreased, while at DLL loan impairment charges were elevated because of higher risk costs in Brazil. The Non Performing Loans ratio was stable at 1.7% (2023: 1.6%).

Rabobank’s private sector loan portfolio grew with EUR 13.3 billion from EUR 434.0 billion to EUR 447.3 billion. DRB's total private sector loan portfolio increased by EUR 3.3 billion, W&R's loan portfolio further increased by EUR 7.0 billion and DLL's private sector lending was up by EUR 3.0 billion. Within DRB the increase in the loan portfolio was mainly driven by growth in our residential mortgage business, on the back of a recovery of the Dutch housing market. With a combined market share of 19.0% (2023: 19.3%) at the end of 2024, Rabobank and its subsidiaries Obvion and Vista were market leader in the Dutch mortgage market. In Wholesale, lending increased primarily due to a higher number of loans being granted to customers who contribute to the energy transition, while Rural lending remained stable. DLL’s portfolio saw continued growth from higher new business volumes. Rabobank’s global Food & Agri portfolio increased by 4% to EUR 119.8 billion. In addition to the healthy growth of the private sector loan portfolio, total deposits were up by EUR 20.0 billion mainly due to an increase in deposits from domestic private and business customers. Rabobank maintained its leading position in the Dutch savings market with a market share of 35.4% (2023: 34.7%) at year-end.

In 2024, Rabobank’s cost/income ratio further improved from 55.9% to 54.4% as income growth and significantly lower regulatory levies offset the higher cost base. The return on equity increased to 10.0%. While the strong financial results bolstered our capital position in 2024, the increase in risk weighted assets, largely driven by our model strategy as well as business developments, and the ~EUR 1 billion successful cash tender offer on Rabobank Certificates had a downward effect. Overall, our CET 1 ratio landed at 16.9% (2023: 17.1%), comfortably above our own ambition of >14%. Even considering our strong financial results for 2024, we need to stay vigilant as the banking sector continues to face major challenges such as geopolitical tensions, uncertain levels of inflation, adapting to new technology and competition, climate and cyber risks.

For annual results and further details, view our results and reports

Appendix to the press release

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Elements of this press release are considered by Rabobank as inside information relating directly or indirectly to Rabobank within the meaning of article 7 of the Market Abuse Regulation (EU Regulation 596/2014) that is made public in accordance with article 17 Market Abuse Regulation.