Rabobank Reports Strong 2024 Performance with Increased Net Profit and Focus on Sustainability

Rabobank Reports Strong 2024 Performance with Increased Net Profit and Focus on Sustainability

(IN BRIEF) Rabobank posted strong financial results for 2024, achieving a net profit of EUR 5,163 million, up from EUR 4,377 million the previous year. The bank’s growth was driven by increased volumes across its commercial segments and its strong position in the Dutch mortgage and savings markets. Rabobank also focused on sustainability, introducing new products such as a mortgage interest discount for energy-efficient homes. The bank continued to support local initiatives through its Rabo ClubSupport program and saw significant growth in its loan portfolios. Despite higher operating costs, Rabobank’s cost/income ratio improved, and its CET 1 ratio remained strong. The bank’s commitment to sustainable growth is evident, though it remains cautious amid global uncertainties.

(PRESS RELEASE) UTRECHT, 11-Feb-2025 — /EuropaWire/ — Rabobank has announced a strong financial performance for 2024, posting a net profit of EUR 5,163 million, a significant increase from EUR 4,377 million in the previous year. This positive result highlights the cooperative bank’s robust position in a year marked by global economic volatility and geopolitical uncertainty, enabling it to contribute meaningfully to its communities and society.

Stefaan Decraene, Chair of the Managing Board, commented on the challenges faced in 2024, stating that Rabobank’s primary goal was to remain a stable partner for customers amidst these dynamics. He emphasized the bank’s commitment to reshaping parts of its organization to enhance customer focus and continue offering unique products that support both individual and societal goals. Rabobank’s market leadership in the Netherlands, particularly in mortgages and savings, serves as a testament to the resonance of its services with customers. For example, the bank introduced an automatic sustainability interest discount for mortgage customers who improved their homes to an energy label A or better, benefiting over 70,000 clients. Additionally, Rabobank saw substantial growth in deposits for its ‘Rabo TijdslotSparen’ savings product, with deposits increasing from EUR 7.2 billion to EUR 23.1 billion in 2024.

Rabobank’s 2.3 million members have remained integral to the bank’s success, with nearly 1,200 members actively engaging during “Our Day” to provide feedback on where the bank can make a difference. Their contributions helped direct nearly EUR 45 million towards local initiatives, and the bank’s Rabo ClubSupport program saw half a million members participating to allocate almost EUR 16 million to 33,000 clubs and associations.

Rabobank’s financial performance was driven by growth across all its commercial segments. Net interest income remained strong, with increased volumes across Domestic Retail Banking (DRB), Wholesale & Rural (W&R), and DLL. In particular, W&R’s lending saw growth thanks to sustainable loans for renewable energy clients. Despite facing a competitive lending environment, DRB saw a recovery in mortgage margins, contributing to overall income growth.

Operating expenses rose by 6%, reflecting higher staff levels, particularly in IT and Financial Economic Crime (FEC) departments. However, costs related to FEC are expected to decrease as the remediation program nears completion. Loan impairment charges fell to EUR 468 million, a decrease from EUR 727 million in 2023, highlighting the overall sound quality of Rabobank’s loan portfolio. The Non-Performing Loans ratio remained stable at 1.7%.

Rabobank also experienced significant growth in its private sector loan portfolio, which increased by EUR 13.3 billion. The Dutch mortgage market remains a key focus, with Rabobank and its subsidiaries holding a market share of 19% at the end of 2024. The global Food & Agri portfolio saw healthy growth, up 4% to EUR 119.8 billion.

The bank’s cost/income ratio improved to 54.4%, and its return on equity increased to 10%. Despite these positive results, Rabobank remains cautious in the face of ongoing global challenges, including geopolitical tensions and technological disruption. The CET 1 ratio stood at 16.9%, comfortably above its target.

Rabobank’s continued growth and stability reflect the bank’s solid financial foundation, and the organization remains committed to supporting customers and contributing to a sustainable and financially healthy future.

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

Appendix to the press release

Media Contact:

Press office
+ 31 (0) 30 216 2758
pressoffice@rabobank.nl

SOURCE: Rabobank