15 December 2022

Rabobank has received notification of the ECB’s final decision concerning the own funds requirements that it has to meet as of 1 January 2023, following the results of the 2022 Supervisory Review and Evaluation Process (SREP).

The decision for Coöperatieve Rabobank U. A. (“Rabobank”) amounts to a total SREP capital requirement of 9.9% of the bank’s total risk exposure amount, applicable on a consolidated basis (Rabobank Group).

Requirements on a consolidated basis

The 9.9% requirement consists of an 8% Pillar 1 total capital requirement and a 1.9% Pillar 2 requirement. These requirements can be fulfilled by CET1 and partly by AT1 and/or Tier 2 capital. The Pillar 2 requirement for 2023 is similar to the requirement in 2022.

The CET1 minimum requirement is 5.6% consisting of the minimum Pillar 1 CET requirement (4.5%) and the Pillar 2 CET1 requirement (1.1%). In addition, Rabobank should comply with the combined buffer requirement consisting of a Capital Conservation Buffer (2.5%) and an Other Systemically Important Institutions (O-SII) buffer as imposed by the Dutch Central Bank (“DNB”) of 2%. This translates into an aggregate 10.1% CET1 requirement as of 1 January 2023, in line with the 2022 CET1 requirement.  Earlier DNB announced that it will activate a 1% Countercyclical Buffer for Dutch exposures as of 25 May 2023. This implies a ~0.6%-pnt increase of Rabobank's MDA trigger.

The 10.1% CET1 requirement does not include the Pillar 2 guidance. The Pillar 2 guidance is not disclosed.

With a fully loaded CET1 ratio of 15.1% on 30 June 2022, Rabobank already complies with the SREP capital requirement for 2023 and also operates above its own CET1 ratio ambition of at least 14%. With a Tier 1 ratio of 17.0% and a Total capital ratio of 19.9% on 30 June 2022 Rabobank also comfortably meets its total SREP capital requirements.

Requirements on an individual basis

As of 1 January 2023 Rabobank is required to maintain a CET1 ratio of 7% on an individual basis. This consists of the minimum Pillar 1 CET requirement (4.5%) and the Capital Conservation Buffer requirement (2.5%). The CET1 ratio of Rabobank on an individual basis amounted to 14.6% on 30 June 2022 which again is well above these requirements.

Parts of this press release are considered by Rabobank to be insider information that directly or indirectly relates to Rabobank as referred to in Article 7 of the Market Abuse Regulation (EU 596/2014) which is disclosed in accordance with Article 17 of the Market Abuse Regulation.