Rabobank is benefiting from economic recovery – Telegraaf.nl

UTRECHT (Reuters) – Rabobank in the first half of the year benefited from the recovery of the Dutch economy. This is evident from the half-year figures published by the cooperative bank Thursday. Earnings rose by more than 40 percent to 1.5 billion euros.

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The sharp increase in profit was mainly due to significantly lower provisions for loans to customers that are affected by the economic crisis in dire straits. For it had 356 million be put aside. That is 70 percent less than in the first half of 2014 and well below the long term average.

The recovery will not lead to a higher demand for loans from businesses. The loan portfolio grew overall by more than 1 percent to 434.4 billion euros. This increase, however, was entirely due from abroad, and also was due primarily to the depreciation of the euro.

Savings

The Bank therefore concludes that the damage from the crisis is not yet fully repaired. Especially the number of bankruptcies and persistently high unemployment are issues of concern. However, the recovery is that to last year driven primarily by exports, meanwhile broader support.

Rabobank customer deposits saw a fraction increased to 382.2 billion euros. While customers remain much extra repayments on their mortgages, thicknesses savings of individuals with 1 percent to 143.6 billion euros.

Future

Chairman Wiebe Draijer said in a note that a further improvement of the results is necessary. ,, Given the intense competition and increased capital requirements, it continues reducing costs and improving yields undiminished essential ”. said the CEO.

Rabobank is still working on new plans for the future. That process will be completed by the end of this year, said Draijer

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