Rabobank has posted a net profit of €5,163 million for 2024, marking a significant rise from the €4,377 million reported last year.
In 2024, Rabobank’s net profit surged to €5,163 million, driven by increased volumes across all commercial segments, strong net interest income supported by favourable interest rates, low loan impairment charges, and substantially reduced regulatory levies.
Total income rose by 5% due to business growth, with net interest income bolstered by higher capital income. Despite a competitive lending environment affecting margins on new loans, Domestic Retail Banking (DRB) saw stable net interest income, and margins on new mortgages showed signs of recovery.
Wholesale & Rural (W&R) and DLL experienced growth, with W&R extending more loans for renewable energy projects and DLL recording higher new business volumes.
DLL continued its growth trajectory, contributing significantly to Rabobank’s overall financial success. DLL’s private sector lending grew by €3.0 billion, driven by higher new business volumes. Despite elevated loan impairment charges due to higher risk costs in Brazil, DLL’s performance remained robust, underpinning the Group’s net interest income.
DLL’s growth in new business volumes was a key factor in Rabobank’s net interest income increase in 2024, reflecting its strategic focus on supporting sustainable and innovative business initiatives.
Comprehensive growth
Rabobank’s total operating expenses increased by 6%, primarily due to a higher average staff level in IT and Financial Economic Crime (FEC) departments. However, with the FEC remediation program nearing completion, related costs and staffing levels are expected to decrease in the coming years.
Rabobank’s private sector loan portfolio expanded by €13.3 billion, reaching €447.3 billion. This growth was mainly driven by residential mortgage business in the DRB segment, a recovery in the Dutch housing market, and increased lending in Wholesale, particularly for energy transition projects. DLL’s portfolio continued to grow with higher new business volumes.
Chair of the Managing Board, Stefaan Decraene, commented on the strong results, emphasising Rabobank’s stability amid global economic challenges.
“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 organisation to strengthen our customer focus.”
Decraene highlighted the bank’s commitment to customer focus, sustainable products, and community support, including the introduction of a sustainability interest discount for mortgage customers and the growth of the unique savings product ‘Rabo TijdslotSparen.’
