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Rabobank sees agricultural loan applications growing
Rabobank further increased profits in the first half of this year. What is striking is that the cooperative bank has provided more loans in the agricultural and food sectors worldwide. The Dutch home market is growing above average. The bank also takes less account of agricultural credit losses.
Rabobank already recorded a record profit last year and increased it further in the first half of this year: by 11% to €2,81 billion. The money booster itself speaks of a strong result, which is largely a result of the interest income. The fact that consumers have been saving more recently also helps, according to Belgian CEO Stefaan Decraene, as he reports in the half-year figures published today.
The bank also saw costs rise significantly, especially wage costs as a result of adjusted collective labor agreements. The costs of credit losses – the so-called straw fund – were €279 million lower than the €339 that was reserved for this in the same period last year.
More agricultural loans
According to the bank, global demand for loans is limited. Nevertheless, the loan portfolio increased by €7,9 billion in the first six months of this year. Rabobank's global food and agri portfolio grew by 4% to €119,6 billion. This is significantly more than in the first half of last year when growth was only 1%. Within the Netherlands, the agricultural loan portfolio increased proportionally even faster by 5,45% to €44,5 million. Loans within the global agricultural and food sector account for 27% of the total. That is one percentage point more than six months ago.
Agricultural credit losses
In the half-year report, Rabobank further emphasizes its intention to support the agricultural sector towards a more sustainable production system, as was also incorporated into the report at the end of last year. agricultural vision from the bank. The bank also expects that the results of the recent elections in various European countries will lead to continued uncertainty for the agricultural sector in the field of climate policy. Partly because of this, Rabobank takes credit losses in the Dutch agricultural sector into account. However, the reservation pot has been adjusted significantly downwards, from €47 million at the end of 2023 to €24 million. This is said to be the result of improved insights and adapted methodology.
In recent years, the bank has made an additional €3 billion available for the Dutch agricultural sector for sustainable loans on favorable terms. Of the €3 billion, only €31 million had actually been provided as of December 2023, 35. It is not known what the status of this pot is six months later.
Wouter Job
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