Rabobank sees profit slip as it awaits stress test results
Dutch lender says outlook is uncertain partly due to Ukraine crisis and its impact on the global economy
Dutch lender Rabobank said today its net profit slipped 3 per cent to €1.1 billion in the first half of the year, due to charges related to Dutch bank SNS which was bailed out by the government.
The outlook for 2014 is uncertain, the bank said in a statement, partly due to the Ukraine crisis and the possible impact on the global economy.
Rabobank said its net result in the first six months of 2014 was reduced by a one-time €214 million levy imposed on Dutch banks.
Rabobank, the largest Dutch mortgage lender, said in a statement it was not yet able to give guidance on the possible impact of the European Central Bank’s asset quality review, or “stress test” of European banks.
The bank said it “was expecting a cautiously continuing economic recovery in the second half of the year,” citing rising consumer consumption and positive signs in the housing market. It added that the trade conflict with Russia over the Ukraine crisis “represent an uncertain factor”.
“Russian sanctions can have an adverse impact on a number of our business customers and may therefore also adversely affect Rabobank’s result to a limited extent,” it added.
Rabobank is the largest lender in the Dutch farms. The Russian sanctions are expected to cost the agriculture sector more than €300 million in lost business this year.