In six months, Rabobank already netted twice as much net profit as in the entire previous corona year. It is also almost the same as in the entire year before. However, the bank still sees problems with some of its customers.
This is apparent from the presentation of the bank’s half-year figures. The profit that remained in the past six months was just under 2.2 billion euros.
According to Rabobank CEO Wiebe Draijer, the good figures were partly written by grace of last year’s bad figures. “We attribute the strong result that is now ahead in part to the recovery from the negative developments in 2020.”
Then, in the first half of last year, the bank had to set aside more than 1.4 billion euros in case customers could no longer pay off their loans due to the corona crisis. Because the defaults seem to be not too bad for the time being, 274 million euros went out of that emergency pot in recent months.
“Despite the Covid-19 measures, there was a sharp economic recovery in the first half of 2021 due to the wide availability of vaccines,” said Draijer. Food and agricultural companies, an important customer group for the bank, also recovered. And the government extended support measures. “The expected deterioration in credit quality has not yet materialized.”
Don’t share customers out of trouble yet
Still, the worries are not over. If the government support measures end in the coming months, some of the bank’s customers may still have problems paying off loans.
“It may come later and may be less high than previously expected, but the fact is that there are still customers with challenges,” said Draijer. The bank also continues to suffer from low interest rates.
As a result, the difference between how much the bank pays for attracting money and how much is earned by lending it is smaller. That is still by far the most important source of income for the bank: two-thirds of the money that comes in is earned there.
Huge profit for Rabobank, but there are still concerns
Source link Huge profit for Rabobank, but there are still concerns