Rabobank charge hike sparked by ACC
PROBLEMS with its ACCBank here forced Dutch lender Rabobank to increase the charge it took from its international division by a fifth during the first half of the year, the bank said yesterday.
Rabobank said yesterday its first-half net profit jumped 13pc and it remained optimistic for the rest of the year should economic conditions not deteriorate.
Net profit stood at €1.85bn, up from €1.64bn in the first half of 2010, while overall revenue rose 13.5pc to €7.3bn.
The group said bad debt charges rose to €618m from €569m a year earlier. It said the charge at its international division rose by almost 20pc to €301m, and the bank said "around two-thirds" of this was linked to ACCBank in Ireland.
"At Rabobank International, value adjustments continued to be high because of Irish-based ACCBank," the bank said.
Loans to the private sector rose by 1pc to €441bn, while assets under management remained steady at €269bn in the first half.
Rabobank said it ensured that its exposure to struggling euro zone nations Spain and Italy -- plus bailed-out Greece, Ireland and Portugal -- was limited at €690m. Greece accounted for €104m, it said.
A new Greek rescue plan, agreed at an emergency euro zone summit in Brussels on July 21, provides comprehensive support of nearly €160bn to Athens and includes a limited contribution from the private sector.
"At Rabobank, we too will be making our contribution which, given our limited exposure in Greece, is actually relatively limited," the bank said.