Rabobank Reports 39% Fall in First-Half Profit on Extra Provision
August 18 2016 - 3:08AM
Dow Jones News
By Maarten van Tartwijk
AMSTERDAM--Rabobank Group on Wednesday posted a 39% drop in net
profit for the first half of 2016, pulled lower by a provision
related to an interest-rate derivatives mis-selling case in the
Netherlands.
Net profit was 924 million euros ($1.04 billion), from 1.5
billion euros in the same period a year earlier, as the bank took a
541 million euro charge linked to the mis-selling issue. Higher
restructuring costs also weighed on the results, as the bank is
implementing a radical overhaul that will result in thousands of
job losses.
Dutch banks said last month they would join a
government-initiated arrangement to compensate thousands of small
and medium-size businesses who suffered losses on interest-rate
derivatives. The customers said they weren't properly informed
about the risks of these products, a view that was backed by the
Dutch financial markets regulator.
ABN Amro Group NV said this week it took an additional €271
million provision to settle the case, while ING Groep NV has set
aside another 137 million euros. In total, Dutch banks have set
aside more than 1 billion euros.
Write to Maarten van Tartwijk at maarten.vantartwijk@wsj.com
(END) Dow Jones Newswires
August 18, 2016 02:53 ET (06:53 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
ING Groep NV (NYSE:ING)
Historical Stock Chart
From Mar 2024 to Apr 2024
ING Groep NV (NYSE:ING)
Historical Stock Chart
From Apr 2023 to Apr 2024