Interim Report Rabobank Group by alicejenny

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									Interim Report 2011
Rabobank Group
Key figures Rabobank Group

    Loan portfolio                             Amounts in millions of euros          30-Jun-11   31-Dec-10   30-Jun-10   31-Dec-09   30-Jun-09
    in billions of euros
                                               Volume of services                                                                             
500
400
                                               Total assets                          664,953     652,536     675,610     607,483     615,361
300
                                               Private sector loan portfolio         440,897     436,292     434,571     415,235     415,239
200
                                               Amounts due to customers              305,360     298,761     297,765     286,338     284,908
100                                            Assets under management and held in
0
                                                 custody for clients                 269,400     270,400     250,100     230,400     194,700
               30-06 31-12 30-06 31-12 30-06
               2009 2009 2010 2010 2011        Financial position and solvency                                                                

    Amounts due to customers                   Equity                                 42,513      40,757      40,224      37,883      36,853
    in billions of euros                       Tier 1 capital                         37,304      34,461      33,120      32,152      31,178
350
                                               Core tier 1 capital                    29,251      27,735      26,330      25,579      24,982
300
                                               Qualifying capital                     38,299      35,734      34,261      32,973      32,273
250
                                               Risk-weighted assets                  229,586     219,568     223,153     233,221     239,670
200
                                               Profit and loss account
150
100
                                               Income                                   7,303       6,284       6,432       6,012       6,422
50
                                               Operating expenses                       4,357       4,290       3,906       4,178       3,860
0
                                               Value adjustments                         618          665        569          840       1,119
               30-06 31-12 30-06 31-12 30-06
                                               Taxation                                  474          196        318          102        127
               2009 2009 2010 2010 2011        Net profit                               1,854       1,133       1,639         892       1,316
    Net pro t
                                               Ratios                                                                                         

2,000
                                               BIS ratio                               16.7%       16.3%       15.4%       14.1%       13.5%
1,500
                                               Tier 1 ratio                            16.2%       15.7%       14.8%       13.8%       13.0%
1,000
                                               Core tier 1 ratio                       12.7%       12.6%       11.8%       11.0%       10.4%
500
                                               Equity capital ratio                    14.0%       14.2%       13.4%       12.4%       11.8%
0
                                               Net profit growth                       13.1%       27.0%       24.5%      (21.8%)    (18.4%)
               30-06 31-12 30-06 31-12 30-06
                                               Return on equity                        10.8%        6.8%       10.2%        5.7%        8.7%
               2009 2009 2010 2010 2011        Efficiency ratio                        59.7%       68.3%       60.7%       69.5%       60.1%
    Return on equity
    in %                                       Nearby

12
                                               Local Rabobanks                           141          141        143          147        152
       12

10
                                               Branches                                  892          911        950        1,010       1,061
       10

8
                                               ATM's                                    2,956       2,963       2,986       3,063       3,079
           8

6
                                               Members (x 1,000)                        1,827       1,801       1,784       1,762       1,731
           6

4
                                               Foreign places of business                738          682        637          624        603
           4

2          2
                                               Market shares (in the Netherlands)                                                             
0          0

               30-06 31-12 30-06 31-12 30-06
                                               Mortgages                                 29%         29%         31%         30%         30%
               2009 2009 2010 2010 2011        Savings                                   39%         40%         39%         40%         40%
    Tier 1 ratio                               Trade, industry and services              42%         43%         41%         41%         41%
    in %
                                               Ratings                                                                                        
15
12
                                               Standard & Poor's                         AAA         AAA         AAA         AAA         AAA
9
                                               Moody's Investor Service                  Aaa         Aaa         Aaa         Aaa         Aaa
6
                                               Fitch                                     AA+         AA+         AA+         AA+         AA+
3
                                               DBRS                                      AAA         AAA         AAA         AAA         AAA
0
                                               Personnel data                                                                                 
               30-06 31-12 30-06 31-12 30-06
               2009 2009 2010 2010 2011        Number of employees (in FTEs)          59,380      58,714      58,419      59,311      60,490
    Interim Report 2011

    Chairman’s foreword                                                                  2
    Profile of Rabobank Group                                                            4
    Rabobank Group at a glance                                                           6
    Financial developments                                                               8
    Domestic retail banking                                                           14
    Wholesale banking and international retail banking                                21
    Asset management                                                                  27
    Leasing                                                                           31
    Real estate                                                                       35
    Risk management                                                                   39
    Working together towards a sustainable future                                     43
    Interim financial information                                                     46
    Notes to the interim financial information                                        51
    Statements                                                                        68




    General note for readers
    Pages 1 to 45 of the Interim Report are unaudited or have not been subject to a
    limited review. The independent external auditor has issued a review report on the
    interim financial information on pages 46 to 67.




1
Chairman’s foreword



                                     Solid earnings at a time of modest economic recovery
                                     In the first six months of 2011, the global economic recovery was modest. Increased
                                     global demand and growing exports meant that Dutch manufacturers started
                                     investing again, albeit on a limited scale. The economic sentiment, however, was
                                     squeezed by news of the public debt crisis in a number of European countries and the
                                     turmoil surrounding the federal debt ceiling in the US. In the Netherlands, this was
                                     exacerbated by the stagnant housing marking, all of which resulted in low consumer
                                     confidence. All in all, there was limited growth in lending and in amounts due to
                                     customers at Rabobank Group. The performance of most group entities was up
                                     compared to in the first half of 2010. The amount of bad debt costs remained largely
                                     unchanged. On balance, it has been a good half year. Net profit was up 13% to
                                     EUR 1,854 million, which was largely used to further strengthen our equity. Equity
                                     growth is needed to keep our buffers at a robust level. Only in this way can we ensure
                                     the continuity of our business, based on mutual trust and mindful of our cooperative
                                     business structure, and continue to sustainable serve our customers in the years ahead.


                                     The public debt problems in some European countries and in the US strongly affected
                                     sentiments in the financial markets. In the US, political parties wrangled for a long time before
                                     they reached an agreement on how the growth in the federal debt should be tempered. In the
                                     eurozone, the financial problems of Greece and some other Member States dominated the
                                     news in the first half of 2011. Here too, policymakers were slow to take action on lowering
                                     Greece’s debt burden. The financial sector will now also have to bear some of the burden, as
                                     well as governments and citizens. At Rabobank, we too will be making our contribution which,
                                     given our limited exposure in Greece, is actually relatively limited. Financial stability in the
                                     eurozone is important for the Dutch economy, for the customers of Rabobank and for
                                     Rabobank itself. While the political leaders of Europe have at long last taken new measures to
                                     promote that stability, it will still be some time until all European countries have their public
                                     finances back in good order and the confidence in the markets returns.

                                     Rabobank believes the proposals under Basel III, which are aimed at bolstering capital buffers
                                     and improving liquidity, will contribute to increased financial stability. However, various other
                                     laws and regulations are on the cards as well. Expectations are that, taken together, these
                                     developments will weigh heavily on the future financial position of the Dutch banking industry.
                                     Care should be taken to ensure that this accumulation will not affect the Dutch banks’ ability to
                                     maintain adequate reserves and, hence, provide sufficient loans. This could hamper economic
                                     recovery. For this reason, it is imperative that the various policy proposals be consistent, that
                                     they be viewed in conjunction, and that they not jeopardise the financial system’s stability and
                                     its ability to continue to provide loans.

                                     In the first half of 2011, Rabobank Group retained its leading positions in its key markets in the
                                     Netherlands. Across the Rabobank Group, considerable progress was achieved on the further
                                     integration of corporate social responsibility (CSR) into our core business. The local Rabobanks
                                     adapted their savings product range to meet customers’ needs for simplicity, convenience and



   2
Interim Report 2011 Rabobank Group
                                             Piet Moerland, Chairman of the
                                             Executive Board of Rabobank Nederland




                                              transparency. Thanks, in part, to the Rabo SpaarWijzer savings guide, which
                                              was introduced this spring, customers are now better placed to achieve their
                                              personal savings ambitions. Following the EHEC outbreak, Rabobank helped
                                              greenhouse growers in cases where it was justified. At the local Rabobanks,
                                              the CSR policy was further developed in close alignment with customer care
                                              and with a focus on transparency in the services we provide. The value chain
                                              policy was further rolled out in the lending process. Rabobank International
                                              committed itself to becoming the leading wholesale bank in the Netherlands,
                                              resulting in an improved market position. Rabobank International broadened
                                              its foreign retail branch network and was granted a banking licence in
                                              India, meaning that we can now further expand our activities in a key food
                                              and agri market. Due in part to the depreciation of the US dollar, total
                                              lending at Rabobank International recorded a slight fall. The asset
                                              management business made a robust recovery compared to the unusually
                                              modest performance in the first half of 2010. Robeco and Sarasin achieved
                      positive cash flows. We are increasingly providing our customers with information on the CSR
                      profile of their investments. De Lage Landen put in a strong half-yearly performance, thanks in
                      part to an increase in interest income and lower bad debt costs. Rabo Real Estate Group recorded
                      an increase in the number of residential property transactions, with lending showing modest
                      growth. Progress was made in the real estate and leasing divisions on developing commercial
                      opportunities that contribute to the increasing sustainability of value chains.

                      An upturn in the housing market could give an important boost to the recovery of consumer
                      confidence and a further economic upswing. With this in mind, Rabobank launched a
                      comprehensive plan to reform the housing market. Responses from the press and from politics
                      focused primarily on just one aspect of the plan: offering only annuity-based mortgages. Other
                      aspects, in particular incentives for the first-time buyers’ market (which could set a moving
                      house chain in motion), are equally important and should be viewed and judged in concert.
                      The temporary cut in the property transfer tax rate as of 1 July may represent a good first step,
                      but it is not enough to secure the continuing recovery of the housing market or to restore
                      confidence. We therefore call upon all parties to come together to develop further structural
                      measures. Where necessary and where able, Rabobank will also step up to its responsibilities.

                      Despite a number of positive steps towards tackling the financial crisis in Greece, the US debt
                      ceiling, and the property transfer tax cut, the Dutch economy will not see any abundant growth
                      in the second half of 2011 either, and the uncertainties in the markets and shared by our clients
                      remain sizeable. We expect growth in lending and in amounts due to customers to remain
                      moderate. Despite the current turmoil in the financial markets, Rabobank is optimistic about
                      the level of its profits for the full year 2011. In times like these, we are proud that we are able to
                      report solid earnings. We use these, as we always do, to maintain our equity position at an
                      appropriate level, so we can continue to put our customers first going forward.




                      Piet Moerland,
                      Chairman of the Executive Board of Rabobank Nederland



   3
Chairman’s foreword
Profile of Rabobank Group



                                     Rabobank Group is an international financial services provider operating on
                                     the basis of cooperative principles. It offers banking, asset management, leasing,
                                     insurance and real estate services. Focus is on broad financial services provision in
                                     the Netherlands and primarily on the food and agribusiness internationally.
                                     Rabobank Group is comprised of independent local Rabobanks plus Rabobank
                                     Nederland, their umbrella organisation, and a number of specialist subsidiaries.
                                     Overall, Rabobank Group has approximately 59,400 employees (in FTEs), who
                                     serve about 10 million customers in 48 countries. In terms of tier 1 capital,
                                     Rabobank Group is among the world’s 30 largest financial institutions. Rabobank
                                     is consistently awarded a high rating by all rating agencies.

                                     About Rabobank
                                     Rabobank was established in the Netherlands towards the end of the nineteenth century by
                                     entrepreneurial people whose access to the capital market was virtually blocked. The bank’s
                                     roots lie in the SME sector and in agriculture in particular. By operating as a cooperative, a
                                     financial institution emerged that allows its customers to achieve their financial ambitions.
                                     This is Rabobank Group’s compass: the bank’s objective is to let people and businesses
                                     participate in the economy as free and equal agents. Rabobank Group offers all the financial
                                     services needed by clients as they participate in a modern society. In the Netherlands,
                                     Rabobank Group has developed into a broad financial services provider whose services are
                                     continually adjusted and updated so that they always meet the needs of people and
                                     businesses, whether in the Netherlands or elsewhere.
                                        In Rabobank Group’s opinion, the sustainable development of prosperity and welfare
                                     requires a careful approach to nature and the environment. The bank is fully committed to
                                     contributing to sustainability through its operations. Rabobank Group respects local culture
                                     and customs, and abides by them so long as they are not contrary to its objectives and core
                                     values. Maintaining the bank’s excellent solvency and liquidity will always be a criterion in
                                     deciding whether to undertake or continue activities.

                                     Mission
                                     Rabobank Group’s mission starts from, and is based on, the best interests of the customer.
                                     The goal is to create value for the customer by:
                                     - providing those financial services considered best and most appropriate by our customers;
                                     - ensuring continuity in the services with a view to protecting the long-term interests of our
                                       customers;
                                     - showing commitment to our customers and their environment, so that we can contribute to
                                       them achieving their ambitions.

                                     Core values
                                     Rabobank Group wants customers to recognise and acknowledge the bank as a champion of:
                                     - integrity: in its dealings, the bank wants to be fair, honest, conscientious and trustworthy;
                                     - respect: the bank’s basis for collaboration is respect, appreciation and commitment;
                                     - professionalism: the bank serves its customers by offering high-level knowledge and facilities;
                                     - sustainability: the bank wants to help build a sustainable society by making contributions to
                                       economic, social and ecological areas.



   4
Interim Report 2011 Rabobank Group
                                          Structure
                                          The Netherlands
                                          The 141 local Rabobanks in the Netherlands are Rabobank Group’s cooperative core business.
                                          Overall, the local Rabobanks employ about 27,200 FTEs. Committed, nearby and leading in
                                          their service offering, they serve about 6.8 million retail clients and 800,000 corporate clients in
                                          the Netherlands. With 892 branches, which operate 2,956 cash-dispensing machines, Rabobank
                                          forms the densest banking network in the Netherlands. The local Rabobanks seek to offer their
                                          clients the best possible services by leveraging different distribution channels, including the
                                          branch network, and online and telephone services. Rooted in the bank’s cooperative structure,
                                          clients can become members of their local Rabobank. The local Rabobanks, for their part, are
                                          members and shareholders of Rabobank Nederland, the umbrella cooperative that supports
                                          their local service provision. Rabobank Nederland also monitors, on behalf of the Dutch Central
                                          Bank (DNB), the business practices, solvency and liquidity of the local Rabobanks, as well as
                                          acting as the holding company of a number of specialist subsidiaries, both in the Netherlands
                                          and abroad. Rabobank Nederland has an employee base of about 6,800 FTEs.

                                          Global structure
                                          Rabobank International plays a role in serving and connecting the entire food chain from primary
                                          production to the marketing of products by large multinationals. It serves wholesale clients in
                                          and outside the Netherlands, including continents far-away. Outside the Netherlands, Rabobank
                                          International focuses on clients in the food and agribusiness, and – through the foreign branch
                                          network – on Dutch clients operating internationally. Rabobank International also operates an
                                          international retail banking business. Boasting a network in 29 countries and 629 business
                                          locations, Rabobank International is a well-known player in the world’s key markets. Counting
                                          the foreign subsidiaries, Rabobank International has an employee base of about 15,600 FTEs.
                                            Rabo Development supports the advancement of a banking infrastructure in seven
                                          developing countries by taking non-controlling interests in rural banks and offering them
                                          expertise and human capital. Rabobank Foundation helps vulnerable and underprivileged
                                          groups in and outside the Netherlands by contributing funds, human resources and knowledge.

                                          Subsidiaries and associates
                                          The subsidiaries and associates help to achieve Rabobank Group’s mission of offering a
                                          comprehensive range of financial services. The group entities are specialists in their fields
                                          and seek to forge close ties in the customer’s best interest.


                     Rabobank Group Organisation chart                                                                                                                        Situation at 30 June 2011


                                                                                              10 million clients

                                                                                           1.8 million members
                                                                                           141 local Rabobanks
                                                                                                    892 branches

                                                                                           Rabobank Nederland
                                                                                     Executive Board – Supervisory Board
                                             Support of                                   Rabobank                                Corporate departments
                                             local Rabobanks                              International                           Rabobank Group

                                             Retail clients                               Food & agribusiness                     Cooperation & Sustainability
                                             Corporate clients                            Wholesale banking                       Rabobank Foundation
                                             Private Banking                              Rural & retail banking                  Investor Relations
                                             Other support units                          Direct Banking                          Long Term Funding
                                                                                          Rabo Development                        Other corporate departments


                                                                                           Subsidiaries and associates

                     Asset management       Leasing                  Real estate               Insurance           Mortgages         Business          International retail         Partner banks

                      Robeco            De Lage Landen           Rabo Real Estate Group      Eureko (31%)          Obvion (70%)    Rembrandt           ACCBank                   Banco Terra (31%)
                      Schretlen & Co    - Athlon Car Lease       - Bouwfonds Property        - Interpolis                          Fusies &            Bank BGZ (59%)            Banco Regional (40%)
                      Sarasin (69%)     - Freo                    Development                                                      Overnames                                     BPR (35%)
                                                                 - MAB Development                                                                                               NMB (35%)
                                                                 - FGH Bank                                                                                                      Zanaco (46%)
                                                                 - Bouwfonds REIM                                                                                                URCB (9%)
                                                                 - Fondsenbeheer                                                                                                 Banco Sicredi (25%)
                                                                  Nederland




   5
Profile of Rabobank Group
Rabobank Group at a glance
 Rabobank Group
Rabobank Group is an international financial services      in millions of euros       in billions of euros   Rabobank Group’s private sector lending was up
provider operating on the basis of cooperative             2,400                                     600     1% in the first half of 2011, growing to EUR 440.9
principles. It offers retail banking, wholesale banking,   2,000                                     500     billion. Bad debt costs were more or less stable. Net
asset management, leasing and real estate services.        1,600                                     400     profit increased thanks in particular to higher
Rabobank’s service offering is about delivering            1,200                                     300     income from the asset management business and
customer value. Focus is on achieving market               800                                       200     domestic retail banking. The tier 1 ratio was up 0.5
leadership as an all-finance bank in the Netherlands       400                                       100     percentage points, reaching 16.2%, because of
and on building on the bank’s leading position as a        0                                            0    retained earnings and the issuing of hybrid
food and agri bank internationally. Rabobank Group                  2010    2011   31-12 30-06               financial instruments. Consumers continued to
                                                                      I       I    2010 2011
is comprised of independent local Rabobanks plus                                                             rack up savings and amounts due to customers
Coöperatieve Centrale Raiffeisen-Boerenleenbank                Net pro t up EUR 215 million                  rose by 2% to EUR 305.4 billion.
B.A. (Rabobank Nederland), their umbrella organi-              Loan portfolio up 1%
sation, and its subsidiaries and associates. Rabobank
Group’s employee base numbers about 59,400 FTEs,
whom are spread over 48 countries.


 Domestic retail banking
Rabobank Group is the largest mortgage lender,             in millions of euros       in billions of euros   The economy continued to recover gradually in
savings bank and insurance broker in the                   1,200                                     300     the first half of 2011, which was a factor that
Netherlands. Rabobank is also market leader in             1,000                                     250     contributed to the profit increase at domestic retail
the SME segment and in the food and agri sector.           800                                       200     banking. Rabobank Group managed to hold on to
The 141 autonomous local Rabobanks have                    600                                       150     its market shares in its key markets. Corporate
892  branches, boasting 2,956 ATMs and an                  400                                       100     clients were generally able to benefit from the
employee base of about 27,200 FTEs. They serve             200                                         50    ongoing economic recovery. As the largest
about 6.8 million retail clients and about 800,000         0                                            0    mortgage lender in the Netherlands, Rabobank
corporate clients in the Netherlands, offering a                    2010    2011   31-12 30-06               contributed to seeking solutions for kick-starting
                                                                      I       I    2010 2011
comprehensive range of financial services. Obvion,                                                           the stagnant housing market. To the extent,
a mortgage lender working with independent                     Net pro t up EUR 126 million                  justified, Rabobank introduced schemes to help
mortgage brokers, also a part of the domestic                  Loan portfolio up 2%                          out customers who had been affected by the EHEC
retail banking division.                                                                                     crisis. Rabobank continues to be the employer of
                                                                                                             choice for highly educated people.


 Wholesale banking and international retail banking
Rabobank International is Rabobank Group’s                 in millions of euros       in billions of euros   Rabobank International wants to be the leading
wholesale banking and international retail                 900                                       120     Dutch wholesale bank. The progress made
banking division. Within the Netherlands, this             750                                       100     towards this ambition was reflected in the first half
division targets all market sectors and gives              600                                         80    of 2011 in its increased share of the wholesale
priority, in close collaboration with the local            450                                         60    market. Total lending at Rabobank International
Rabobanks, to providing the best possible services         300                                         40    fell marginally in the first six months of the year
to the wholesale market. Outside the Netherlands,          150                                         20    due in part to the depreciation of the US dollar.
focus is on the food and agri sector. Rabobank             0                                            0    Favourable developments in the Direct Banking
International has a worldwide office network, with                  2010    2011   31-12 30-06               business led to a sharp rise in savings deposits.
                                                                      I       I    2010 2011
branches in 29 countries and an employee base of                                                             Profit for the first half of 2011 was down on that for
about 15,600 FTEs. Rabo Development helps                      Net pro t down EUR 222 million                the same period last year, which was attributable
banks in developing countries transform into                   Loan portfolio down 1%                        in part to a gain on the sale of part of the non-
modern financial institutions, and has non-                                                                  controlling interest in Indian-based Yes Bank in
controlling interests in seven partner banks with a                                                          2010. Now that we have our own banking licence
highly agricultural profile.                                                                                 in India, we are well-placed further broaden our
                                                                                                             operations in this key food and agri market.



   6
Interim Report 2011 Rabobank Group
 Asset management
Rabobank Group’s asset management business is           in millions of euros         in billions of euros    Despite positive cash flows, assets managed for
carried out by Robeco, Sarasin and Schretlen & Co.      150                                         300      clients were virtually stable in the first half of 2011.
In addition, some client assets are managed by          125                                         250      Growth in assets was largely cancelled out by the
local Rabobanks; Rabo Real Estate Group                 100                                         200      strong depreciation of the US dollar. Higher
specialises in investment property. Through these       75                                          150      commissions from asset management contributed
group entities, Rabobank allows its clients to invest   50                                          100      to an upswing in net profit. Where responsible
in a large number of investment funds and offers        25                                            50     investments are concerned, important steps were
them access to a broad range of asset management        0                                              0     taken towards achieving two objectives: further
services. The asset management business employs                   2010    2011   31-12 30-06                 alignment of investment services to the UN Principles
                                                                    I       I    2010 2011
approximately 3,100 FTEs in total.                                                                           for Responsible Investment and further integration
                                                             Net pro t up EUR 134 million                    of responsible investment practices across the
                                                             Stability in assets under management            investment product offering.




 Leasing
De Lage Landen runs Rabobank Group’s leasing             in millions of euros         in billions of euros   De Lage Landen achieved higher margins and
activities. The Vendor Finance division helps            180                                           30    managed to lower its bad debt costs. Net profit for
manufacturers and distributors to generate sales         150                                           25    the first half of 2011 was up 52%. The recovery of
in 35 countries. The Financial & Mobility Solutions      120                                           20    residual value gains also contributed to the increase
division is active in nine European countries; it        90                                            15    in profit. Focus on the food and agribusiness led to
operates Athlon Car Lease, the international car-        60                                            10    this sector taking up a greater share of the loan
leasing subsidiary. In the Netherlands, this division    30                                             5    portfolio. Due in part to the depreciation of the US
offers a broad range of leasing, trading and             0                                              0    dollar, lending at De Lage Landen grew to a limited
consumer finance products, for instance under                      2010   2011    31-12 30-06                extent only. The acquisition of a consumer credit
                                                                     I      I     2010 2011
the online Freo label. De Lage Landen has an                                                                 portfolio from Achmea drove the increase in the
employee base of approximately 4,900 FTEs.                    Netto pro t up EUR 53 million                  consumer credit portfolio. The Clean Technology
                                                              Loan portfolio up 1%                           business unit, which was formed in 2010, stepped up
                                                                                                             its activities in the first half of 2011.




 Rabo Real Estate Group
Rabo Real Estate Group is responsible for                in millions of euros         in billions of euros   The number of residential property transactions was
Rabobank Group’s retail and corporate real estate        70                                            21    up 9% in the first half of 2011, rising to 3,567, while
operations. Its core areas are development of            60                                            18    completed new commercial properties dropped by
residential and commercial properties, property          50                                            15    4% to EUR  126 million. Lending rose by 4% to
finance and service provision to property                40                                            12    EUR 18.5 billion. Managed property assets increased
investors. Rabo Real Estate Group operates the           30                                             9    by 1%, reaching EUR  7.3 billion. Despite the still
labels Bouwfonds Property Development, MAB               20                                             6    difficult market, Rabo Real Estate Group saw a rise in
Development, FGH Bank, Bouwfonds REIM and                10                                             3    its net profit by EUR  2 million to EUR  68 million. In
Fondsenbeheer Nederland. With its headcount              0                                              0    order to take a unified approach to sustainable
of about 1,600 FTEs, it operates mostly in                         2010   2011    31-12 30-06                building, Rabo Real Estate defined principles for a
                                                                     I      I     2010 2011
Netherlands, but also has a presence in countries                                                            group-wide approach within the divisions in the first
such as France and Germany.                                   Net pro t Rabo Real Estate Group               half of 2011.
                                                              up EUR 2 million
                                                              Loan portfolio up 4%




   7
Rabobank Group at a glance
Financial developments



                                            Net profit growth and improved capital ratios
                                            Although there was more uncertainty about the debts of several countries,
                                            the first half of 2011 was characterised by ongoing economic recovery in
                                            the Netherlands. Exports were up because of a rise in global demand and
                                            the Dutch economy grew slowly but surely. Businesses showed a tentative
                                            tendency towards resuming their capital expenditures. Total private sector lending
                                            was up 1% to EUR 440.9 billion as a result. As consumers continued to deposit
                                            savings, amounts due to customers increased by 2% to EUR 305.4 billion at group
                                            level. Fuelled by higher interest income and a rise in other income, Rabobank
                                            Group’s net profit increased by 13% in the first half of 2011, to EUR 1,854 million.
                                            Return on equity stood at 10.8%. The tier 1 ratio was up 0.5 percentage points,
                                            reaching 16.2%, because of retained earnings and the issuing of hybrid capital.
                                            Bad debt costs saw a moderate increase; as a percentage of average lending,
                                            these were virtually stable at 29 basis points of average lending. The net profit
                                            growth caused RAROC to rise by 2.0 percentage points to 16.8%. The efficiency
                                            ratio stood at 59.7% and equity was up 4%, rising to EUR 42.5 billion.


                                            Financial targets achieved
1 Return on equity is calculated by         Rabobank Group has three financial targets: a tier 1 ratio of 12.5% or more, a return on equity¹ of at
expressing net profit as a percentage of    least 8%, and an increase in net profit by no less than 10%. The tier 1 ratio was up 0.5 percentage
tier 1 capital as at the end of the         points to 16.2% (15.7%²) in the first half of the year. Retained earnings and the issuing of hybrid
previous financial year.                    financial instruments contributed to the rise in tier 1 capital by 8% to EUR 37.3 (34.5) billion. Risk-
                                            weighted assets increased by 5% to EUR 229.6 (219.6) billion. The core tier 1 ratio3 stood at 12.7%
2 For page 8 to 45, the amounts in          (12.6%) and the equity capital ratio at 14.0% (14.2%). Return on equity was up 0.6 percentage
brackets ( ) are the comparative figures.   points to 10.8% (10.2%). Group profit for the period increased by 13% to EUR 1,854 (1,639) million.
Where income is concerned, these are
the figures for the first half of 2010;     Growth in lending at local Rabobanks in particular
where the financial position is             Economic growth resulted in an improved investment climate in the Netherlands. Exports
concerned, these are the figures at         increased and Dutch businesses tentatively resumed their capital expenditures. The mortgage
year-end 2010. The comparative figures      portfolio also showed limited growth. Thanks in part to higher corporate loans and private
have been restated to reflect the           individual loans, Rabobank Group’s private sector lending was up 1% in the first half of 2011,
insights gained since their preparation.    growing to EUR 440.9 (436.3) billion. This private sector loan portfolio is recognised within
                                            ‘loans to customers’, which item rose by EUR 4.2 billion to EUR 460.1 (455.9) billion. The ‘loans
3 The core tier 1 ratio is calculated by    to customers’ also comprises EUR 9.4 (7.8) billion in ‘securities transactions due from private
relating the tier 1 capital, excluding      sector lending’ EUR 4.6 (6.2) billion in ‘interest rate hedges’ and EUR 5.2 (5.6) billion in ‘public
hybrid capital, to risk-weighted assets.    sector lending’.




   8
Interim Report 2011 Rabobank Group
 Loan portfolio by sector                                                          Loan portfolio by group entity
 in billions of euros                                                              mid-2011

                                             500
                                             400                                    Domestic retail banking        66%
                                             300                                    Wholesale banking and
                                                                                    international retail banking   22%
                                             200
   Food and agri                                                                    Leasing                         6%
   TIS                                       100                                    Real estate                     4%
   Private individuals                       0                                      Other                           2%
                                                   30-06 31-12 30-06 31-12 30-06
                                                   2009 2009 2010 2010 2011



                                             Of the increase in lending, EUR 4.4 billion – which is virtually the entire amount – was
                                             attributable to the local Rabobanks and Obvion. Fuelled by the depreciation of foreign
                                             currencies, including the US dollar, lending at Rabobank International was down and
                                             De Lage Landen posted only a modest increase in lending.
                                               Of the private sector lending, 48% was made up of loans to private individuals, 34% of loans
                                             to the trade, industry and services (TIS) sector, and 18% of loans to the food and agri sector.


 Loan portfolio TIS by industry                                                    Loan portfolio food and agri by industry
 mid-2011                                                                          mid-2011


   Rental property                     20%
   Finance and insurance
   (not banks)                         17%
   Wholesale                           11%                                          Dairy                          19%
   Construction                         6%                                          Grain and oil seeds            19%
   Industry                             6%                                          Animail protein                17%
   Transport and warehousing            5%                                          Fruit and vegetables           11%
   Activities related to real estate    5%                                          Farm inputs                     6%
   Health care                          4%                                          Food retail and food service    6%
   Professional services                3%                                          Flowers                         4%
   Retail non food                      3%                                          Beverages                       4%
   Other TIS                           20%                                          Other food and agri            14%




                                             Loans to private individuals were up 2% to EUR 211.2 (208.0) billion. This portfolio is virtually
                                             entirely comprised of mortgage loans and consumer loans. At group level, the TIS portfolio
                                             grew by 1% to EUR 149.3 (147.7) billion. Lending to the healthcare sector and financial
                                             institutions (not including banks) saw particular increases. Loans to the food and agri sector
                                             were stable at EUR 80.4 (80.6) billion, EUR 55.8 (55.6) billion of which was issued to the primary
                                             agricultural sector.
                                               Of private sector loans, 74% were issued in the Netherlands, 11% in the US, 9% in European
                                             countries other than the Netherlands, 4% in Australia and New Zealand, and 2% elsewhere.

                                             Increase in amounts due to customers
                                             Amounts due to customers have always been an important source of funding for lending at
                                             Rabobank. Customer deposits have become even more important under Basel III. Amounts
                                             due to customers saw a 2% increase at Rabobank Group in the first six months of 2011, rising
                                             to EUR 305.4 (298.8) billion. Most of these amounts were deposited with local Rabobanks,
                                             which posted a 3% increase in amounts due to customers to EUR 197.9 (192.8) billion. At the
                                             wholesale banking and international retail banking division, amounts due to customers were
                                             up too, rising by 1% to EUR 89.0 (88.3) billion. The increase in amounts due to customers at
                                             the asset management business was 5%, pushing this item to EUR 17.5 (16.7) billion.




   9
Financial developments
 Breakdown of amounts due to customers                                                                  Amounts due to customers by group entity
 in billions of euros                                                                                   mid-2011

                                     300
                                     250
                                     200
   Other                             150
   Corporate time desposits                                                                              Domestic retail banking         65%
                                     100
   Current accounts/                                                                                     Wholesale banking and
   settlements accounts              50                                                                  international retail banking    29%
   Saving desposits                  0                                                                   Asset management and investment 6%
                                           30-06 31-12 30-06 31-12 30-06
                                           2009 2009 2010 2010 2011



                                     The key component of amounts due to customers are savings deposits by private individuals,
                                     which rose by 5% to EUR 137.4 (130.9) billion in the first half of the year. Of savings deposits,
                                     83% were generated by domestic retail banking, 13% by wholesale banking and international
                                     retail banking, and 4% by the asset management business. Savings deposits from Direct
                                     Banking activities in Belgium, Ireland, Australia and New Zealand again showed considerable
                                     growth, increasing by 22% to EUR 14.2 (11.6) billion in the first six months of 2011. The number
                                     of clients using these foreign online banks was 395,000 (362,000) at 30 June 2011.

 Equity                                                                                                Increase in equity thanks to retained earnings
 in billions of euros
                                                                                                       Rabobank Group’s equity increased by 4%, reaching EUR 42.5
                                     45                                                                (40.8) billion in the first half of 2011. This rise was attributable
                                     40                                                                to retained earnings and the USD 2 billion of hybrid financial
                                     35                                                                instruments. Hybrid capital was up because of the issuing of
                                     30                                                                hybrid financial instruments to the tone of USD 2 billion.
                                     25                                                                Of equity, 60% is comprised of retained earnings and other
                                     20                                                                reserves, 15% of Rabobank Member Certificates, 18% of
                                     15                                                                hybrid capital and 7% of other non-controlling interests.
   Other non-controling interests
                                     10
   Hybrid capital
   Rabobank Member Certi cates       5                                                                 External capital requirement
   Reserves and retained earning     0                                                                 Rabobank Group’s external capital requirement amounted
                                           30-06 31-12 30-06 31-12 30-06                               to EUR 18.4 (17.6) billion at 30 June 2011. This increase was
                                           2009 2009 2010 2010 2011
                                                                                                       due mainly to adjustments to the internal risk weightings.
                                                                                                       Of the total capital requirement, 91% relates to credit and
                                                                                                       transfer risk, 8% to operational risk and 1% to market risk.
 Capital requirements
 in billions of euros, mid-2011
                                                                                                       Rabobank Group uses the Advanced Internal Rating Based
                                     40                                                                Approach, which has been approved by the Dutch Central
                                     35                                                                Bank, to calculate the external capital requirement for credit
                                     30                                                                risk for virtually the entire loan portfolio. The standardized
                                     25                                                                approach is applied, in dialogue with the Dutch Central Bank,
                                     20                                                                to portfolios with relatively limited exposure and to a few
                                     15                                                                smaller foreign portfolios that are not yet subject to the
   Other risks
                                     10                                                                Advanced Internal Rating Based Approach. Operational risk
   Operational and business risk
   Interest rate and market risk     5                                                                 is  determined using the regulator-approved internal model
   Credit and transfer risk          0                                                                 based on the Advanced Measurement Approach. Where
                                                                                                       market risk is concerned, Rabobank has permission to
                                                                 requirements
                                            Economic capital

                                                               External capital


                                                                                  Qualifying capital




                                                                                                       calculate the general and specific position risk using its own
                                                                                                       internal Value at Risk (VaR) models, based on the rules of
                                                                                                       CAD II (Capital Adequacy Directive).




   10
Interim Report 2011 Rabobank Group
 Economic capital by group entity                                      Economic capital by risk type
 mid-2011                                                              mid-2011


   Domestic retail banking   36%
   Wholesale banking and
   international retail      32%
   Real estate                8%                                         Credit and transfer risk        64%
   Leasing                    5%                                         Operational
   Asset management and                                                  and business risk               17%
   investment                 4%                                         Interest rate and market risk   12%
   Other                     15%                                         Other risks                      7%




                                    Economic capital as an internal capital requirement
                                    Over and above the external capital requirement, Rabobank Group calculates the internal
                                    capital requirement based on an economic capital framework. The key difference with the
                                    external capital requirement is that allowance is made for any material risks and for Rabobank’s
                                    creditworthiness. Rabobank applies a higher confidence level for economic capital (99.99%)
                                    than imposed by the external capital requirement (99.90%). A broad spectrum of risks is
                                    measured consistently to gain a more complete understanding of risks and to allow a more
                                    accurate weighing of risk and return. A series of models has been developed to weigh the risks
                                    incurred by Rabobank Group. These are credit, transfer, operational, business, interest rate and
                                    market risk. Market risk breaks down into trading book, private equity, currency, property and
                                    residual value risk. A separate risk model is used for the equity interest in Eureko.

                                    Economic capital was stable at EUR 22.3 (22.3) billion during the first half of 2011. Total economic
                                    capital is well below the available qualifying capital of EUR 38.3 (35.7) billion that is held to
                                    cover any potential losses. This sizeable buffer underscores the solidity of Rabobank Group.




   11
Financial developments
                                     Financial results of Rabobank Group
                                     Results (in millions of euros)
                                                                                                    2011-I        2010-I        Change
                                     Interest                                                      4,507          4,347            4%
                                     Commission                                                    1,513          1,413            7%
                                     Other results                                                 1,283            672          91%
                                     Total income                                                  7,303          6,432          14%
                                     Staff costs                                                   2,596          2,362          10%
                                     Other administrative expenses                                 1,471          1,278          15%
                                     Depreciation and amortisation                                   290            266            9%
                                     Total operating expenses                                      4,357          3,906          12%
                                     Gross result                                                  2,946          2,526          17%
                                     Value adjustments                                               618            569            9%
                                     Operating profit before taxation                              2,328          1,957          19%
                                     Taxation                                                        474            318          49%
                                     Net profit                                                    1,854          1,639          13%
                                                                                                                                     
                                     Bad debt costs (in basis points)                                  29            27            7%

                                     Ratios                                                                                              
                                     Efficiency ratio                                             59.7%          60.7%               
                                     Return on equity                                             10.8%          10.2%               
                                     RAROC                                                        16.8%          14.8%               

                                     Balance sheet (in billions of euros)                       30- Jun-11     31-Dec-10                 
                                     Total assets                                                  665.0          652.5            2%
                                     Private sector loan portfolio                                 440.9          436.3            1%
                                     Amounts due to customers                                      305.4          298.8            2%

                                     Capital requirements (in billions of euros)                                                         
                                     Capital requirement                                             18.4          17.6            5%
                                     Economic capital                                                22.3          22.3              

                                     Capital ratios                                                                                      
                                     Tier 1 ratio                                                 16.2%          15.7%               
                                     Core tier 1 ratio                                            12.7%          12.6%               
                                                                                                                                     
                                     Number of employees (in FTEs)                                59,380         58,714            1%



                                     Notes to financial results of Rabobank Group
                                     Income up 14%
                                     At Rabobank Group, total income rose by 14% in the first half of 2011 to reach EUR 7,303
                                     (6,432) million. Interest income was up 4% to EUR 4,507 (4,347) million. The local Rabobanks
                                     in particular issued more loans and saw their customer deposits increase. Commission income
                                     was up 7% to EUR 1,513 (1,413) million, mainly as a result of a rise in commissions from asset
                                     management activities. Higher income from Global Financial Markets and Professional
                                     Products, an improvement in trading income at Sarasin, and an increase in residual value
                                     gains at De Lage Landen were factors in the rise in other income. In combination with
                                     favourable developments in the yield curve, with rates rising and the curve steepening, this
                                     resulted in a 91% increase in other income to EUR 1,283 (672) million in the first half of 2011.




   12
Interim Report 2011 Rabobank Group
                         Operating expenses up 12%
                         At Rabobank Group, total operating expenses rose by 12% in the first half of 2011 to reach
                         EUR 4,357 (3,906) million. The rise in insourced staff at the local Rabobanks and Rabobank
                         Nederland as well as higher pension costs contributed to the 10% upsurge in staff costs to
                         EUR 2,596 (2,362) million at group level. Fuelled by higher other administrative expenses at
                         Rabobank International and De Lage Landen, these expenses swelled by 15% to EUR 1,471
                         (1,278) million at group level. Higher amounts were written down on buildings, fixtures and
                         fittings, and software, resulting in an increase in depreciation and amortisation charges by 9%
                         to EUR 290 (266) million.

                         Bad debt costs at 29 basis points
                         Despite the economic recovery, which had a positive effect on developments in value
                         adjustments, various factors nevertheless fuelled a limited increase in bad debt costs.
                         The continuingly poor property market, for instance, caused an increase in value adjustments
                         at the real estate activities and the local Rabobanks recognised an additional provision for
                         greenhouse vegetable growers as a result of the EHEC crisis. At Rabobank International, value
                         adjustments continued to be high because of the Irish-based ACCBank. For the first six months
                         of 2011, value adjustments at group level stood at EUR 618 (569) million. As a measure of
                         average lending, bad debt costs were virtually stable at 29 (27) basis points, which is slightly
                         above the long-term average of 24 basis points.

                         Net profit up 13%
                         Rabobank Group’s net profit increased by 13%, reaching EUR 1,854 (1,639) million in the first half
                         of 2011. The tax expense was EUR 474 (318) million, which corresponds to an effective tax rate of
                         20.4% (16.2%). Most of the profit originates in countries with a high tax burden. Net of non-
                         controlling interests and payments on Rabobank Member Certificates and hybrid financial
                         instruments, an amount of EUR 1,340 (1,176) million remains. This was used to strengthen equity.

                         RAROC up 2 percentage points
                         Risk Adjusted Return On Capital (RAROC) is used as a measure whereby profitability is
                         consistently weighed against risk. The RAROC ratio is used also for pricing at transaction
                         level and in the loan approval process. Thanks to the increase in net profit, Rabobank Group’s
                         RAROC after taxation amounted to 16.8% (14.8%) in the first half of 2011, which represents a
                         rise by 2 percentage points on the same period last year.




   13
Financial developments
Domestic retail banking


www.rabobank.nl, www.obvion.nl, www.interpolis.nl



 Share in net pro t                  Robust performance driven by economic recovery
 Rabobank Group 2011-I

                                     An increase in global demand powered moderate economic recovery in the first
                                     six months of 2011. Many customers were able to reap the benefits. At domestic
                                     retail banking, this led to a limited 2% growth in private sector lending to
                                     EUR 291.3 billion. Amounts due to customers increased by 3% to EUR 197.9
                                     billion. Rabobank managed to retain its market shares in its key markets.
                                       Bad debt costs showed a limited rise in the first half of 2011, however, despite
Domestic retail banking       57%
                                     the economic recovery, one of the reasons being the EHEC crisis in greenhouse
                                     vegetable horticulture. Value adjustments increased by EUR 41 million to EUR 218
                                     million, which corresponds to bad debt costs of 15 basis points of average
                                     lending. Net profit of the domestic retail banking division was up 14% in the first
                                     half of 2011 to EUR 1,058 million. The efficiency ratio improved by 2.6 percentage
                                     points, landing to 55.7%.
                                       For years now, Rabobank has put the customer first and we are fully committed
                                     to stepping up to our responsibility. Rabobank has made an appeal for a full-scale
                                     reform of the housing market to pull it out of its slump. On 1 July, the Dutch
                                     Cabinet decided to temporarily reduce the property transfer tax rate to 2%, which
                                     Rabobank sees as an important first step. In addition, Rabobank supported
                                     greenhouse horticulture businesses by being flexible with customers in that sector
                                     offering them extended repayment options or temporary reduced-rate loans.

                                     Appeal to reform the housing market
                                     In June 2011, Rabobank made an appeal for a full-scale reform of the Dutch housing market,
                                     which has stagnated because of the credit crunch and stricter mortgage rules, among other
                                     factors. One of the elements of Rabobank’s proposal is the annuity-based mortgage. Kick-
                                     starting the first-time buyers’ market, for instance by deferring the repayment obligation or
                                     by offering scope for customised mortgages sets the market in motion, which will restore trust.
                                     Repayments on this mortgage will reduce the national mortgage debt, which will benefit the
                                     country’s financial stability. Formalising all measures in an agreement will build the trust and
                                     stability that the consumer needs. The proposal has opened the door to a debate about the
                                     problems in the housing market with all relevant stakeholders. On 1 July, the Dutch Cabinet
                                     decided to reduce the property transfer tax rate to 2% for a period of one year, which
                                     Rabobank sees as an important first step towards shaking the housing market into motion.
                                     In response, Rabobank has decided to lower the threshold for first-time home buyers; any
                                     mortgage they take out before 31 December 2011 will be interest-free for the first four months.

                                     Employer of choice for highly educated people
                                     Intermediair, a Dutch weekly, has named Rabobank as the employer of choice in the Netherlands.
                                     In its annual survey of highly educated people, it polled what company they would most like to
                                     work for. Respondents mentioned Rabobank most often for the third consecutive time.
                                     Interesting positions, an excellent pay and benefit package, growth opportunities and an
                                     appealing corporate culture were cited as the reasons. They also appreciated that Rabobank
                                     makes clear choices and sticks with them consistently.



   14
Interim Report 2011 Rabobank Group
                          Fighting for mortgage customers
                          Competition in the mortgage market is heating up. Being the market leader in this segment
                          is not self-evident. The competition is winning back the trust of the customer and is focusing
                          more than ever on the long-term interests of customers. In this market, Rabobank was
                          particularly concerned with customers who wanted to refinance their mortgage or whose
                          mortgage was up for interest revision. It should not automatically be assumed that these
                          customers will stay loyal to the bank. We rely on our advisers to make the difference in
                          retaining our customers. Customers are advised a suitable and appropriate product on the
                          basis of interviews with our advisers.
                             In a survey held by the Dutch Consumers’ Association, the Rabo OpbouwHypotheek was
                          ranked first as the best mortgage product. The Consumers’ Association’s survey looked at 27
                          mortgage lenders and their products; the terms and conditions of the Rabo OpbouwHypotheek
                          received the best ratings.
                             Late in May, the Dutch Competition Authority (NMa) concluded that the competition on
                          the mortgage market is adequate and that margins on mortgages are back to where they were
                          before the credit crunch.

                          Stable market shares
                          Two of the focus areas of the domestic retail banking division in 2011 are better client services
                          and profitable market leadership. Rabobank’s leading position is reflected in our sizable shares
                          of the mortgage market, the savings market, the trade, industry and services (TIS) market, and
                          the food and agri sector.
                             The total volume of the mortgage market over the first six months of 2011 was relatively
                          limited despite growth in that market. This market after all has contracted considerably over
                          the past few years. At 29.0% (29.3%), Rabobank Group’s share of the mortgage market was
                          more or less stable in the first half of the year. The local Rabobanks achieved a market share of
                          25.7% and Obvion of 3.3%.
                             The Dutch savings market grew by 4% to EUR 302.5 billion in the first half of 2011. Rabobank
                          Group’s share of this market was virtually stable at 39.4% (39.7%). The market share of the local
                          Rabobanks was 38.0% (38.2%) and that of Robeco Direct stood at 1.4% (1.5%). Rabobank Group
                          also more or less managed to maintain its position in the TIS market, the share of which was
                          42% (43%). Rabobank Group’s share of the agricultural market stood at 84% at year-end 2010.

                           Market shares
                           in %

                                                  50
                                                  40
                            30-06-2009            30
                            31-12-2009
                                                  20
                            30-06-2010
                            31-12-2010            10
                            30-06-2011            0
                                                            Mortgages                  Savings             Trade, industry and
                                                                                                                 services



                          Teaching financial literacy to children
                          Rabobank wants to help children become financially literate. With the help of Rabobank, a school
                          TV channel developed the Financial Literacy teaching module for primary schools, which was
                          awarded the Gold Comenius EduMedia Award 2011. The award is presented annually for the best
                          European educational software and web application.

                          Sharper customer focus at mortgage lender Obvion
                          Obvion is increasingly gearing its products and services to the needs of consumers and customers.
                          In 2011, Obvion’s own product approval committee, which was formed late in 2010, started to
                          review all Obvion products from the perspective of the company’s strategy, its CSR policy and
                          the outcomes of customer surveys.
                            In addition, Obvion developed the website www.kenjehypotheek.nl (know your mortgage) for
                          consumers. In recent years, there has been a lot of debate in the mortgage market about quality
                          improvements in terms of service provision, products, advice and fees. But not enough attention



   15
Domestic retail banking
                                     had been paid to actively educating customers about products. This website, which was initiated by
                                     Obvion and Dukers & Baelemans, an institute of learning, is meant to provide background
                                     information to customers.
                                        Obvion introduced the Startgerusthypotheek mortgage with an interest rate rebate for first-time
                                     home owners. The rebate scheme was developed in collaboration with such parties as the Dutch
                                     Home Owners Association. The scheme makes it easier for housing associations to sell homes to
                                     their tenants by prefinancing an interest rate rebate of 20%. This facility, in combination with the
                                     Obvion mortgage and the mortgage advisory services of the Dutch Home Owners Association,
                                     bring purchasing a home within reach for a group of consumers.

                                     Reduction in tax relief for socially responsible investments
                                     Rabo Groen Bank has not issued any loans since October 2010 because of the Cabinet’s
                                     decision to scale down the tax relief for private investors from 2.5% in 2010 to 1.2% in 2015.
                                     It does, however, still issue new short-term green bonds to fund loans granted in the past.
                                     The Dutch green banks and green funds have been involved in an intensive dialogue with the
                                     Cabinet since this decision was taken, the goal being to explore whether the planned spending
                                     cuts in the scheme might be achieved such that the banks would still be able to continue this
                                     environmental financing, which is often innovative in nature. Expectations are that we will
                                     know the outcome of the debate in the autumn.

                                     Dutch greenhouse horticulture struck by EHEC
                                     A few sectors, including greenhouse horticulture, are still suffering heavily. In dialogue with
                                     these sectors, Rabobank stepped up – and will step up – to its responsibility to help businesses
                                     that were affected by the crisis by meeting with other stakeholders in and outside the value
                                     chain in question in order to work out effective solutions.
                                       Rabobank is the largest financier of greenhouse horticulture in the Netherlands. In the spring
                                     of 2011, food crop horticulture was hit by the effects of the EHEC crisis. The EHEC bacteria
                                     outbreak in Germany for a short time caused a complete standstill in Dutch exports of fresh
                                     vegetables to Germany, one of largest importers of Dutch greenhouse vegetables. This was
                                     a major setback for Dutch greenhouse horticulture businesses. Rabobank felt that sound
                                     businesses should not fall victim to this temporary slump in demand. For this reason, these
                                     growers were offered support where justified in the form of flexibility in credit lines and
                                     extended repayments on loans with extended maturities. Low-interest bridging loans were
                                     made available to businesses with additional liquidity deficits.

                                     Supporting corporate clients
                                     To help corporate clients realise their plans, the local Rabobanks used Rabo Stimuleringskapitaal
                                     (incentive capital), which was introduced late in 2010. These subordinated loans are proving to
                                     be a powerful instrument, particularly for fast-growing, innovative businesses and for business
                                     transfers. The scheme offers promising businesses a subordinated loan at an attractive rate but
                                     with a risk-bearing component.
                                        In the first half of 2011, Rabobank made the best possible use of guarantee schemes of the
                                     Dutch Ministry of Economic Affairs, Agriculture & Innovation if the customer was unable to
                                     independently obtain a bank loan. With a market share of over 50% in such schemes as
                                     Borgstelling MKB Kredieten (guarantee scheme for loans to SMEs) and Garantie
                                     Ondernemingsfinancieringsregeling (guarantee scheme for business finance), the bank managed
                                     to help customers get loans.
                                        Rabobank is a preferred partner of Port4Growth, a platform for fast-growing companies.
                                     They meet regularly teaming up with each other and with expert partners to work on revenue
                                     growth. Not seldom does it involve growth spurts from a few million to, say, EUR 20 million over
                                     a timespan of a couple of years. Over the past six months, 120 fast-growing companies have
                                     helped Rabobank develop the financial growth model. Other fast-growing companies and
                                     bank experts offer appropriate advice on the issues underlying this model.
                                        By collaborating with Stichting Ondernemersklankbord (a feedback group for businesses),
                                     Rabobank offers entrepreneurs access to experienced business advisers. All relevant of services
                                     are being provided to SMEs and agricultural businesses, from starting up a business to
                                     terminating it.




   16
Interim Report 2011 Rabobank Group
                          Data submission via SBR
                          By fulfilling an active, pioneering and driving role in the Standard Business Reporting (SBR)
                          project, Rabobank helped shape the standard submission of business data to banks and
                          government bodies. In the first half of 2011, the government decided to designate SBR as
                          the exclusive channel by which to submit annual figures and other accounting information
                          of businesses to the government. Rabobank has already facilitated data submission via SBR
                          since April 2010. The use of a standard submission protocol and standard data will reduce
                          the administrative burden on businesses.

                          Focus on the customer
                          Customer focus has been a key area of attention over the past six months. One of the issues in this
                          regard was the corporate social responsibility (CSR) framework that was adopted in June 2011.
                          Starting from a number of principles, it combines customer focus, commercial considerations and
                          CSR aspects into a coherent standard for service provision. In addition, the product development
                          process was improved and the product approval process given further structure.

                          Food security and sustainability in value chains
                          The Dutch food and agribusiness is not only important to the Netherlands and production
                          capacity in North-West Europe, but it also plays an important role in spreading knowledge and
                          base products across the globe. Because of its position as market leader, Rabobank expects to
                          have to get even more actively involved over the next few years in discussions about food
                          security and creating a more sustainable supply chain. Rabobank is capitalising on these
                          developments by defining an integrated vision of themes such as the bio-based economy,
                          water, energy and crop protection, supply chain integration, scale increases and food supply.

                          Better labour relations in the mushroom sector
                          On Rabobank’s initiative and in dialogue with the mushroom sector, an agreement was reached
                          with all stakeholders in the chain about introducing responsible labour relations and working
                          conditions. Focus is on certification of the employment conditions of foreign workers in the Dutch
                          mushroom sector. Rabobank takes the view that businesses not qualifying for certification will
                          not be issued loans going forward.

                          Policy for livestock farming
                          Based, in part, on its own Food & Agribusiness Principles, Rabobank formulated a new policy for
                          livestock farming in the Livestock Farming Position Paper. This policy has been narrowed down
                          to livestock farming in the Netherlands. Other countries will follow in the course of 2011. This is
                          how Rabobank puts its ambition to make livestock farming more sustainable into practice.

                          Up-to-date CSR expertise available to account managers
                          Starting this year, the bank’s account managers have had access to specific, up-to-date CSR
                          expertise about all SME sectors and 25 sub-sectors. Rabobank wants CSR to be a key topic in
                          interviews between account managers and customers or potential customers. Loan application
                          officers are also informed of developments in CSR because sustainability is an important aspect
                          in reviewing customer loan applications.
                             CSR is also discussed extensively in the bank’s external publications. It is one of the main
                          themes of the report entitled ‘Visie op de Groothandel’ (vision of the wholesale trade), which
                          was published recently. Later this year, the bank will publish a study entitled ‘Industrie’
                          (industry), which delves into CSR practices in the manufacturing industry.

                          Tentative growth in lending
                          Total private sector lending at domestic retail banking increased by 2% in the first half of the
                          year, rising to EUR 291.3 (286.9) billion, which kept growth at about the same level as in the
                          first six months of 2010. Of loans, most were issued to private individuals (69%), 21% to the TIS
                          sector, and 10% to the food and agri sector. Loans to the TIS sector were up 2% to EUR 62.7%
                          (61.1) billion. In addition, loans to private individuals, which are comprised almost entirely of
                          mortgage loans, rose by 2% to EUR 199.7 (196.8) billion. Loans to the food and agri sector were
                          virtually stable at EUR 28.9 (29.1) billion. Within this portfolio, lending to the meat sector grew
                          by with lending to the diary sector contracting.



   17
Domestic retail banking
 Loan portfolio by sector                                              Simplification of savings products and
 in billions of euros
                                                                       introduction of Rabo SpaarWijzer
                                     300                                   Early in 2010, it was decided to change the range of personal
                                     250                                   savings products to meet customer needs for simplicity,
                                     200                                   convenience and transparency. In May 2010, we took a
                                     150                                   first step by combining the Rabo TeleSparen and Rabo
                                     100                                   RendementRekening savings accounts into a simple product
   Food and agri
   TIS                               50                                    for traditional savings customers: Rabo SpaarRekening. On
   Private individuals               0                                     1 February 2011, the Rabo InternetBonusSparen and Rabo
                                            30-06 31-12 30-06 31-12 30-06  InternetLoyaalSparen online savings accounts were merged
                                            2009 2009 2010 2010 2011
                                                                           into Rabo InternetSparen, a new online savings account with
                                                                           three classes of account balances.
                                     The spring of 2011 saw the launch of Rabo SpaarWijzer, an online savings guide, which was
                                     introduced in support of the savings campaign. This campaign was developed on the basis
                                     that customers who know what they are saving for reach their goals sooner. Rabo SpaarWijzer
                                     is an online tool to help customers gain an understanding of the savings product that is best
                                     suited to their goal. With it, Rabobank wants to take on the role of a financial partner to assist
                                     customers in achieving their personal ambitions. Rabobank also simplified its offering of
                                     business savings products in 2011, reducing them to three: a freely accessible account
                                     (without notice), an account with a quarterly bonus and a time deposit.
                                        Domestic retail banking saw its amounts due to customers increase by 3%, rising to EUR 197.9
                                     (192.8) billion in the first half of 2011. Savings deposited by private individuals, which is the
                                     largest category of amounts due to customers, were up 2% to EUR 114.7 (112.6) billion.

                                     Introduction of new current accounts
                                     In 2010, Rabobank started to introduce four new current accounts. That year, over 3.3 million
                                     customers were migrated to a new account. Another more than 1.3 million customers were
                                     offered a new account in the first half of 2011. As a result of this large-scale operation, which
                                     should be completed by the end of 2011, all customers have been assigned the account that
                                     best suits their needs. Customers pay only for what they need and their payment transactions
                                     are more efficient thanks to a growing spectrum of online features.

                                     Transparent insurance commissions and change in calculation method
                                     Interpolis, a leading insurer in the Netherlands, is a subsidiary of Eureko. Rabobank Group has
                                     a 31% equity interest in Eureko. The local Rabobanks sell Interpolis insurance policies. Being
                                     the insurance provider, Interpolis pays a brokerage fee to Rabobank. Interpolis and Rabobank
                                     plan to disclose the amount of this fee with all their retail customers. By doing so, Rabobank
                                     goes a step further than the government proposal, which tells banks to disclose the amount of
                                     the fee only to customers who ask.
                                       The method for calculating commissions will also be changed. Whereas commissions used to
                                     be based on a percentage of the insurance premium, the fee will now be a fixed amount for
                                     each policy. Starting this November, all Alles in één Polis policyholders will receive a new
                                     certificate of insurance stating the amount of the fee. By the end of 2012, all retail customers
                                     will have insight into this new commission structure.

                                     Reduction in paper consumption
                                     In tandem with Interpolis and other insurers, Rabobank is working towards reducing its paper
                                     flows. The ZekerVanJeZaak business policy, for instance, offers corporate clients the option to
                                     update their details in a fully online environment, so that they are guaranteed not to be
                                     underinsured. This creates more customer-friendly and efficient processes, and reduces paper
                                     consumption. As more and more customers rely on online banking for their daily banking
                                     needs, we are also reducing the number of paper-based bank statements.




   18
Interim Report 2011 Rabobank Group
                          Increase in number of Interpolis insurance policies
                          Interpolis operates in different markets, offering a broad range of products, including Alles in
                          één Polis package insurance for private individuals, ZorgActief Polis health insurance, and the
                          ZekerVanJeZaak Polis and Bedrijven Compact Polis business insurance policies.
                             The number of Alles in één Polis policies arranged by the local Rabobanks was more or less stable
                          at about 1,320,000 (1,321,000) in the first half of 2011, while the percentage of customers with three
                          or more insurance products under an Alles in één Polis policy increased by 0.5 percentage points to
                          57.5% (57.0%). Interpolis also sold more health insurance policies, with the number of ZorgActief
                          Polis policyholders rising by 7% to 191,000 (179,000) in the first half of the year. The increase in
                          ZekerVanJeZaak Polis policies sold (a 22% rise to 38,000 (31,000)) largely comes at the expense of
                          the Bedrijven Compact Polis policy (a 5% drop to 172,000 (181,000)).



                          Financial results domestic retail banking
                          Results (in millions of euros)
                                                                                            2011-I         2010-I        Change
                          Interest                                                         2,576          2,483             4%
                          Commission                                                         673            685            -2%
                          Other results                                                      262              86               
                          Total income                                                     3,511          3,254             8%
                          Staff costs                                                      1,103          1,049             5%
                          Other administrative expenses                                      792            789                
                          Depreciation and amortisation                                        59             59               
                          Total operating expenses                                         1,954          1,897             3%
                          Gross result                                                     1,557          1,357            15%
                          Value adjustments                                                  218            177            23%
                          Operating profit before taxation                                 1,339          1,180            13%
                          Taxation                                                           281            248            13%
                          Net profit                                                       1,058            932            14%
                                                                                                                               
                          Bad debt costs (in basis points)                                     15             13           15%

                          Ratios                                                                                               
                          Efficiency ratio                                                55.7%           58.3%                
                          RAROC                                                           26.7%           24.5%                

                          Balance sheet (in billions of euros)                          30- Jun-11     31-Dec-10               
                          Total assets                                                     371.8          360.9             3%
                          Private sector loan portfolio                                    291.3          286.9             2%
                          Amounts due to customers                                         197.9          192.8             3%

                          Capital requirements (in billions of euros)                                                          
                          Capital requirement                                                 6.6            6.7           -1%
                          Economic capital                                                    8.0            8.1           -1%
                                                                                                                               
                          Number of employees (in FTEs)                                   27,199         27,322                




   19
Domestic retail banking
                                     Notes to financial results of domestic retail banking
                                     Income up 8%
                                     Total income at the domestic retail banking division rose by 8% to EUR 3,511 (3,254) million in
                                     the first half of 2011. Interest income was up 4% to EUR 2,576 (2,483) million in line with the
                                     average increase in assets. The drop in insurance commissions contributed to the 2% fall in
                                     commission income to EUR 673 (685) million. Insurance commissions at the local Rabobanks
                                     amounted to EUR 156 (185) million. Thanks, in part, to higher dividend distributions by
                                     Rabobank Nederland, other income soared to EUR 262 (86) million.

                                     Operating expenses up 3%
                                     Domestic retail banking saw its total operating expenses increase by 3% to EUR 1,954 (1,897)
                                     million in the first half of 2011. Staff costs were up 5%, reaching EUR 1,103 (1,049) million, due
                                     mainly to a higher number of insourced staff contracted, for instance, for temporarily filling
                                     vacancies and carrying out projects. The headcount of permanent staff dropped to 27,199
                                     (27,322) FTEs. At EUR 792 (789) million, other administrative expenses were more or less the
                                     same as in the first half of 2010. Depreciation and amortisation charges were stable at EUR 59
                                     (59) million.

                                     Bad debt costs at 15 basis points
                                     Overall, the economic upswing in the first half of 2011 had a positive effect on developments
                                     in bad debt costs at domestic retail banking. Owing, in part, to the EHEC crisis in greenhouse
                                     horticulture, value adjustments saw an increase in the first six months of the year, rising to
                                     EUR 218 (177) million. Expressed in basis points of average lending, bad debt costs stood at
                                     15 (13) basis points on an annual basis, which is just above the long-term average of 12 basis
                                     points. Of lending, 69% consists of residential mortgages; bad debt costs on this part of the
                                     portfolio remained very low.

                                     External capital requirement down 1%
                                     In calculating the capital requirement, risks associated with loans to private individuals and
                                     corporate clients are estimated using internal rating and risk models. The capital requirements
                                     for the domestic retail banking division saw a limited drop in 2011 on year-end 2010 to EUR 6.6
                                     (6.7) billion. Economic capital, i.e. the internal capital requirement, stood at EUR 8.0 (8.1) billion.




   20
Interim Report 2011 Rabobank Group
Wholesale banking and international
retail banking

www.rabobank.com



 Share in net pro t                          Leading position in the Netherlands and handsome growth
 Rabobank Group 2011-I
                                             in savings on international scale
                                             Private sector lending at Rabobank International saw a marginal drop to EUR 97.8
                                             billion in the first six months of 2011, due, in part, to the depreciation of the US dollar.
                                             Loans to the food and agri sector were stable at EUR 44.1 billion and the international
                                             retail portfolio stood at EUR 33.1 billion. Favourable developments in the Direct
                                             Banking business continued on into the first half of 2011; savings deposits at this
                                             division were up 22% to EUR 14.2 billion.
Wholesale banking and
international retail banking    27%            Net profit fell by 30% to EUR 506 million. Profit in the first half of 2010 was
                                             affected by the sale of part of the equity interest in Yes Bank. The efficiency ratio
                                             was up 6.4 percentage points to 51.0%. Bad debt costs landed at 66 basis points
                                             of average lending.
                                               Rabobank International aspires to become the leading wholesale bank in the
                                             Netherlands, and this ambition was pursued vigorously in the first half of 2011.
                                             Now that it has been granted a banking licence in India, Rabobank International is
                                             expanding its activities in a key growth market for food and agribusiness.
                                               Rabo Development received the local seal of approval for acquiring an equity
                                             interest in Brazilian-based Banco Sicredi. In the year under review, Rabobank was
                                             involved in several initiatives to make food and agri chains more sustainable.

                                             Rabobank: the leading Dutch wholesale bank
                                             In collaboration with the local Rabobanks, the Dutch wholesale banking division provides
                                             services to wholesale clients. It was established in 2010 that there were good opportunities in
                                             the market to broaden the service provision to these clients and to increase the client base.
                                             Contacts with existing and prospective clients were intensified. Becoming our clients’ principal
                                             bank is our aim in the mid-corporate segment. Large corporates usually do not have a principal
                                             bank; they look for a banking partner in each large transaction. Rabobank wants to be the
                                             benchmark for specific products in the wholesale market. Being an all-finance bank and
                                             boasting a large global network, Rabobank is perfectly placed to offer excellent services to
                                             Dutch corporate clients. Experienced bankers are crucial in this regard and we have hired extra
                                             people who fit the bill. The results so far have been promising; our share of the wholesale
                                             market has grown since last year.

                                             Winner of Incompany 500 survey
                                             For the third consecutive year, Rabobank came first in the independent Incompany 500 survey,
                                             which ranks the reputation and customer satisfaction scores of businesses. Rabobank finished
                                             far ahead of the competition in terms of being the number one business partner and employer
                                             of choice. As employer of choice, Rabobank received 25% more preference votes than the
                                             runner-up; as the most popular business partner, we led by no less than 50%.




   21
Wholesale banking and international retail banking
                                     Sharing knowledge with the food and agri sector
                                     Rabobank plays a role in serving and connecting the entire food chain from primary production
                                     to the marketing of products by large multinationals. It is the international wholesale banking
                                     division’s ambition to become the leading global food and agri bank. It is working towards
                                     fulfilling this ambition by capitalising on international growth opportunities in this sector.
                                     Rabobank also plays an important role with regard to sharing knowledge of food and agri
                                     dilemmas. One of the challenges for the agricultural sector is to produce enough food while
                                     there is less fertile agricultural land and the diet of people in emerging economies is changing.
                                     These developments make running an agricultural business more complex; sharing knowledge is
                                     crucial. Rabobank discusses these issues with its clients on a global scale, for instance in Advisory
                                     Boards that have been set up in several regions.

                                     Banking licence in India and office opening in Germany
                                     India’s Central Bank has granted Rabobank a licence to open an office in Mumbai. Rabobank
                                     already had a presence in India through Rabo India Finance, a subsidiary that offers services in
                                     the areas of corporate finance, mergers & acquisitions, and equity & corporate advisory, and
                                     through the Rabobank Foundation. With the new licence, Rabobank will have the option of
                                     broadening its service provision by offering working capital and trade finance, foreign
                                     exchange trading and fixed-income products. India being a key growth market with a large
                                     food and agri sector, this step-up in services is perfectly in line with the strategy. For the same
                                     reason, Rabobank is considering also expanding its current operations in Turkey by applying
                                     for a banking licence there.
                                        Rabobank International Services increased its number of offices in Germany, which is an
                                     important trading partner for the Netherlands. As Northern Germany is the fastest growing
                                     region in the country, Rabobank opened an office in Hamburg, the region’s economic hub, that
                                     provides support to mainly Dutch clients that do business.

                                     Best soft commodities bank
                                     In the first half of 2011, more customers yet again made use of our Trade & Commodity Finance
                                     services. The fact that these services are much appreciated was reflected in Euromoney, a
                                     business and investment magazine, proclaiming Rabobank the Best Soft Commodities Bank
                                     2011. The achievements of Trade & Commodity Finance are particularly apparent in growth
                                     markets such as South America and Asia, both of which are key regions where Rabobank
                                     International is successfully building positions. Soft commodities are agricultural base products
                                     such as crops and animal products. This award shows that Trade & Commodity Finance is
                                     successful at helping customers meet their financing needs and mitigating risks associated
                                     with buying and selling soft commodities. The agricultural knowledge of our people
                                     contributes to this success.

                                     Partial IPO for Bank BGZ
                                     Poland is another key food and agri market with excellent growth perspectives, which is why
                                     Rabobank has a 59% equity interest in Bank BGZ. Bank BGZ is looking to become market leader
                                     in the Polish food and agri market, and, similar to Rabobank, has agricultural roots. The Polish
                                     State floated part of its shares in Bank BGZ in the first half of 2011. As a result, 12% of the
                                     shares have been publicly traded on the Polish stock exchange since the end of May 2011.

                                     Further increase in savings deposits at foreign direct banks
                                     The volume of savings deposits generated by Direct Banking activities continued to grow in
                                     the first half of 2011. Most of the growth originated in Belgium, but fairly substantial
                                     contributions were made in Australia, Ireland and New Zealand too. Total savings deposits at
                                     these foreign online banks rose by 22% to EUR 14.2 (11.6) billion in the first half of 2011. This
                                     increase was achieved in Belgium, Ireland and Australia in particular. Eight years after the
                                     introduction of Belgian-based Rabobank.be, we managed to break the EUR 5 billion mark.
                                     Rabobank’s Direct Banking activities are expected to continue to grow globally in 2011 and
                                     options are being explored for starting up operations in new countries. The success of Direct
                                     Banking is attributable to the competitive rate of interest that is offered on savings deposits in
                                     combination with transparent terms and Rabobank’s robust reputation. The deposited savings
                                     are being used to fund the lending activities of the international retail banking division.



   22
Interim Report 2011 Rabobank Group
                                             Limited drop in retail loans due to currency effects
                                             Although the international retail activities grew in volume because we opened many new retail
                                             branches, the portfolio contracted due to currency effects. Retail loans fell by 2% to EUR 33.1
                                             (33.9) billion, which corresponds to 33.8% (34.2%) of Rabobank International’s total lending.
                                             The depreciation of the Australian and New Zealand dollars cause retail loans in those
                                             countries to increase by a mere 1% to EUR 14.0 (13.8) billion. The US dollar fell by 8% in the first
                                             half of 2011, as a result of which US retail lending was down 4% to EUR 9.9 (10.3) billion. A survey
                                             of 52,000 retail clients in California by J.D. Power and Associates showed that Rabobank was
                                             awarded the highest customer satisfaction score of all surveyed banks. Customers had
                                             particular appreciation for our commitment to their present and future needs. Bank BGZ’s
                                             Polish retail loan portfolio grew by 5% to EUR 5.3 (5.0) billion and Irish-based ACCBank saw the
                                             volume of its retail loans land at EUR 3.9 (4.2) billion. The economic climate in Ireland caused a
                                             growing number of customers to default, so that additional provisions had to be made in the
                                             first half of 2011.

                                             Focus on sustainability in food and agri chains
                                             In the first half of 2011, Rabobank International again placed much emphasis on creating more
                                             sustainable food and agri chains by entering into a direct dialogue with customers and
                                             discussing their opportunities and threats on the one hand, and indirectly through active
                                             involvement in various sector initiatives taken to help distribution partners and non-
                                             governmental organisations (NGOs) reach agreement to make their raw materials chains more
                                             sustainable on the other. Rabobank has been on the Executive Board of the Roundtable on
                                             Sustainable Palm Oil for some time now and took a seat on the Board of the Round Table for
                                             Responsible Soy in June. The bank is also involved in other sector impulses, such as Bonsucro
                                             (sugar) and the Better Cotton Initiative, a large-scale project to help cotton farmers, in India
                                             among other countries, use more sustainable production methods. The project offers the bank
                                             the opportunity to become a front-runner in this sector. The first results are highly encouraging.
                                             Farmers who produce ‘better cotton’ at present save up to 50% on their cost of raw materials,
                                             which leads to an instant increase in income for them while improving their well-being.

                                             Supporting rural banks in developing countries
                                             Rabo Development helps existing banks with a rural orientation in developing countries to
                                             grow into professional, modern-day financial institutions. This is how Rabobank allows millions
                                             of customers in other parts of the world to access suitable financial services. As Rabobank
                                             takes non-controlling interests in these banks, most of their equity remains in local hands.
                                             While keeping their autonomy, these banks benefit from Rabobank’s capital, expertise,
                                             products, networks and management skills. To this end, Rabo Development makes use of the
                                             knowledge and experience of Rabobank staff from all parts of the organisation. Experts in such
                                             areas as credit management, risk management, product development, distribution, ICT and HR
                                             are continually on hand to provide support to our partner banks.
                                               Rabo Development had non-controlling interests in the following seven partner banks at
                                             30 June 2011: National Microfinance Bank of Tanzania, Zambia National Commercial Bank,
                                             United Rural Cooperative Bank of Hangzhou, China, Banco Terra of Mozambique, Banque
                                             Populaire du Rwanda, Banco Regional of Paraguay and Banco Cooperativo Sicredi of Brazil.
                                             Rabobank was granted consent to take an equity interest in Sicredi in the first half of 2011.
                                             Overall, the partner banks have created jobs for more than 20,000 local employees. Boasting a
                                             network of over 1,700 branches, they serve nearly 7 million customers in developing countries.
                                               Limited technical assistance is also being provided to non-partner banks, for instance in
                                             Africa and Asia. In addition to coordinating this technical assistance, Rabo Development’s
                                             project managers offer support to the partner banks in a range of other areas in their
                                             relationship to Rabobank. Our agricultural value chain experts help partner banks improve
                                             their service provision to the agricultural sector, as well as helping Rabobank customers in
                                             other market segments restructure the value chain. Options are being explored for creating
                                             more structured partnerships with sponsors, which are key stakeholders in the Rabo
                                             Development programme.




   23
Wholesale banking and international retail banking
                                     In the first half of 2011, Rabo Development assigned about 45 man-months’ worth of banking
                                     specialists to foreign postings. Furthermore, Rabo Development had 17 managers and long-
                                     term consultants working abroad at 30 June 2011.
                                       In May 2011, Rabo Development injected capital into Banco Terra Mozambique, Rabo
                                     Development’s only greenfield operation. This investment was meant to encourage the bank’s
                                     further commercial and financial growth.

                                     Increase in food and agri share of lending
                                     Total private sector lending at Rabobank International showed a marginal 1% drop in the first
                                     half of the year, falling to EUR 97.8 (99.1) billion. The main reason for this decline was the
                                     depreciation of a number of foreign currencies. There was also a reduced need for loans in the
                                     market. Loans to Dutch corporate clients saw a 9% increase to EUR 12.5 (11.5) billion. Loans
                                     issued to the food and agri sector were stable at EUR 44.1 (44.1) billion, corresponding to
                                     45.0% (44.5%) of total lending. Loans to the TIS sector fell by 3% to EUR 48.4 (49.7) billion.
                                     Lending was down in particular in the industrial sector and the wholesale trade. Retail loans
                                     stood at EUR 5.4 (5.4) billion.


 Loan portfolio by sector                                                  Loan portfolio by region
 in billions of euros

                                     120
                                     100
                                     80
                                     60                                     America                            38%
                                                                            Europe excluding the Netherlands   27%
                                     40
   Food and agri                                                            Australia and New-Zealand          18%
   TIS                               20                                     The Netherlands                    13%
   Private individuals               0                                      Asia                               4%
                                           30-06 31-12 30-06 31-12 30-06
                                           2009 2009 2010 2010 2011




   24
Interim Report 2011 Rabobank Group
                                             Financial results of wholesale banking and
                                             international retail banking
                                             Results (in millions of euros)
                                                                                                             2011-I        2010-I        Change
                                             Interest                                                       1,399          1,416           -1%
                                             Commission                                                       311            301            3%
                                             Other results                                                    382            272           40%
                                             Total income                                                   2,092          1,989            5%
                                             Staff costs                                                      586            475           23%
                                             Other administrative expenses                                    429            363           18%
                                             Depreciation and amortisation                                      51            49            4%
                                             Total operating expenses                                       1,066            887           20%
                                             Gross result                                                   1,026          1,102           -7%
                                             Value adjustments                                                301            252           19%
                                             Operating profit before taxation                                 725            850          -15%
                                             Taxation                                                         219            122           80%
                                             Net profit                                                       506            728          -30%
                                                                                                                                               
                                             Bad debt costs (in basis points)                                   66            55           20%

                                             Ratios                                                                                            
                                             Efficiency ratio                                              51.0%          44.6%                
                                             RAROC                                                         13.2%          18.7%                

                                             Balance sheet (in billions of euros)                        30- Jun-11     31-Dec-10              
                                             Total assets                                                   450.2          440.1            2%
                                             Private sector loan portfolio                                    97.8          99.1           -1%

                                             Capital requirements (in billions of euros)                                                       
                                             Capital requirement                                               7.0           6.5            8%
                                             Economic capital                                                  7.2           7.4           -3%
                                                                                                                                               
                                             Number of employees (in FTEs)                                 15,572         15,197            2%



                                             Notes to financial results of wholesale banking
                                             and international retail banking
                                             Income up 5%
                                             Total income at Rabobank International was up 5% to EUR 2,092 (1,989) million in the first half
                                             of 2011. Interest income was stable at EUR 1,399 (1,416) million because of a reduced need for
                                             loans in the market and currency effects. Commissions rose by 3% to EUR 311 (301) million.
                                             Other income saw a 40% increase to EUR 382 (272) million thanks to higher income from
                                             Global Financial Markets.

                                             Operating expenses up 20%
                                             Rabobank International’s operating expenses increased by 20% to EUR 1,066 (887) million in
                                             the first half of the year. Staff costs were up 23% to EUR 586 (475) million, owing, in part, to an
                                             additional pension charge for UK-based staff, and an increase in headcount by 2% to 15,572
                                             (15,197) FTEs. Fuelled by the expansion of the number of retail branches, the cost of integrating
                                             the acquisitions made in 2010 and higher IT and marketing expenses, other administrative
                                             expenses increased by 18% to EUR 429 (363) million. Depreciation and amortisation was up
                                             slightly, rising to EUR 51 (49) million, due in particular to higher software amortisation.




   25
Wholesale banking and international retail banking
                                     Bad debt costs at 66 basis points
                                     Value adjustments at Rabobank International stood at EUR 301 (252) million in the first half of
                                     2011. About two-thirds of these adjustments related to ACCBank’s loan portfolio. At 66 (55)
                                     basis points of the average lending portfolio, bad debts costs are above the long-term average
                                     of 54 basis points.

                                     External capital requirement up 8%
                                     Rabobank International’s capital requirement saw an 8% increase to EUR 7.0 (6.5) billion in the
                                     first six months of the year due in particular to changes in internal risk weightings. Economic
                                     capital, i.e. the internal capital requirement, stood at EUR 7.2 (7.4) billion.




   26
Interim Report 2011 Rabobank Group
Asset management


www.robeco.com, www.sarasin.com, www.schretlen.com



 Share in net pro t           Stability in assets under management and held in custody
 Rabobank Group 2011-I
                              for clients
                              Assets managed by Rabobank Group’s asset management business in the first
                              half of 2011 were virtually stable at EUR 269.4 billion. Cash flows at Robeco and
                              Sarasin stood at EUR 4.9 billion and EUR 3.2 billion respectively. Equities and
                              bonds showed a mixed picture; investment returns were EUR 2.5 billion negative
                              on balance. The depreciation of the US dollar had an adverse effect on the volume
                              of assets under management. The total negative currency loss was EUR 4.6 billion.
Asset management         7%
                                Robeco’s strategic reorientation resulted in a lower headcount in the first half
                              of 2011. Average assets managed for the period saw an increase compared with
                              the first half of 2010, causing commissions to go up. This, for its part, contributed
                              to an upswing in net profit from asset management to EUR 135 million.
                                With respect to responsible investments, Rabobank, Robeco, Sarasin and
                              Schretlen & Co took important steps towards achieving two objectives: further
                              alignment of investment services to the UN Principles for Responsible Investments
                              and deeper integration of responsible investment practices across the full
                              investment product offering.


                              New strategy prompting organisational changes at Robeco
                              Robeco defined its strategy for the period 2010-2014 in 2010. In the first half of 2011, it continued
                              on the course towards strengthening its position as market leader in the Netherlands and
                              introducing more focus with respect to the number of markets and clients. One of the pillars of
                              this strategic reorientation is greater emphasis on cost control. Partly as a result of this, Robeco
                              has managed to bring about a further reduction in its headcount over the first six months of
                              2011. In 2011, the asset manager will continue to pursue commercial growth while keeping
                              costs at an acceptable level.

                              Rabobank Private Banking and Schretlen & Co
                              Collaborative ties between Rabobank Private Banking and Schretlen & Co have been
                              substantially strengthened over the past period. One of the pillars of the cooperation is the
                              provision of Schretlen services through local Rabobanks. Preparations to facilitate this are in
                              full swing. At present, local Rabobanks are still limited to offering Rabo Beheerd Beleggen asset
                              management services, which showed significant growth over the past six months, partly
                              because of the introduction of an investment fund and an index tracker.
                                 In addition, new investment parameters were formulated that are meant primarily to align
                              the goals and needs of customers, or their risk appetite, in respect of the portfolio. This target
                              risk profile is a reflection of three interrelated aspects from the investment parameters: the
                              bandwidths of the asset mixes, the risk-spreading rules within equities and bonds and other
                              products, and the offering of investment instruments.
                                 In addition, a new range of investment funds was put together that combines the best of
                              Rabobank and Schretlen & Co. In doing so, the number of funds and fund houses was reduced.




  27
Asset management
                                     Fund houses are selected based on quantitative on both quantitative criteria such as results,
                                     risks and costs, and qualitative aspects such as information provision, quality of the investment
                                     process and the extent to which they meet sustainable investing requirements. A range of
                                     index trackers will be added to the new offering of investment funds.

                                     Targeted investments in growth initiatives at Sarasin
                                     Sarasin continues to reap the benefits of the broad geographical spread of its operations
                                     across global growth markets. In addition to targeting Switzerland, Sarasin also focuses on
                                     markets in Europe, the Middle East and Asia. As part of its selective growth strategy, Sarasin
                                     opened a sixth Swiss branch in Luzern in July 2011, and a fourth German branch in Cologne.
                                     There are no plans at present to tap new markets. Instead, Sarasin seeks to leverage its full
                                     potential in existing markets in order to guarantee a cost-efficient approach.

                                     Robeco and Sarasin investment funds: positive returns despite mixed picture
                                     at stock exchange
                                     Many stock exchanges dropped slightly in the first half of 2011 and bond yields showed a
                                     moderately positive picture on average despite the public debt crisis. The AEX Index and
                                     the MSCI World Index were down about 2%, including reinvestment of dividend income.
                                     The MSCI Emerging Markets Index dropped by 6.7%. The Robeco and Sarasin investment funds
                                     generally achieved good returns. Overall, 65% of assets managed by Robeco outperformed
                                     the benchmark for the first six months of 2011, against 62% for the past three years.

                                     Integrating responsible investments into Rabobank Group service offering
                                     Rabobank, Robeco, Bank Sarasin and Schretlen & Co have taken important steps over the past
                                     two years towards achieving two joint objectives: aligning their investment services to the UN
                                     Principles for Responsible Investment and integrating responsible investment practices across the
                                     full investment product offering. In the period under review, for instance, Rabobank added details
                                     to the so-called fund selector on its investment website, allowing investors to review the extent to
                                     which a fund meets socially responsible investment criteria. Schretlen & Co offers its clients the
                                     option of defining their own criteria for portfolio structuring. This feature is used in particular for
                                     bodies such as congregations and charitable institutions that have usually formulated their own
                                     specific responsible investment criteria based on their role in society. The group ambitions will be
                                     fleshed out further in the second half of 2011 via the Sustainable Investing programme.

                                     Robeco’s responsible investment practices
                                     In the reporting period, Robeco continued on the chosen path where responsible investments
                                     were concerned. There was an increase in the number of investment portfolios for which
                                     various factors involving the environment, social aspects and governance issues are integrated
                                     into the investment process. These so-called ESG factors have now become part of quantitative
                                     investment models and their integration is applied to theme funds as well.
                                       Robeco plans to launch several food and agri-related products in the years ahead. The
                                     revamped SAM Sustainable Agribusiness Equities fund has already been presented. While the
                                     asset management business is developing the product offering, Robeco, Robeco subsidiary
                                     SAM and Rabobank are also continuing to work on a programme that combines the areas of
                                     expertise of the three group entities.

                                     Assets managed by Robeco broken down by responsible investment instrument
                                     (in billions of euros)                                                         30- Jun-11     31-Dec-10
                                     Total                                                                               149            150
                                     Assets invested in sustainable theme funds                                             5             4
                                     Assets to which ESG factor integration is applied                                     60            60
                                     Assets on which dialogues with enterprises are ongoing                                43            44
                                     Assets for which votes are cast                                                       27            26
                                     Assets to which the exclusion policy can be applied                                   90            90


                                     Robeco’s assets managed and held in custody under licence at SAM totalled EUR 7 (7) billion.




   28
Interim Report 2011 Rabobank Group
                                   Robeco actively involved in dialogue with businesses and exercising voting rights
                                   Robeco introduced new topics to include in the active dialogue with businesses and to vote on
                                   in shareholders’ meetings. It participated, for instance, in the PharmaFutures initiative, which has
                                   established a dialogue between investors and the pharmaceutical sector about trends in society
                                   such as the increasing power of the consumer and open innovation. Robeco also entered into a
                                   dialogue with various businesses about bribery and corruption. In addition, the asset manager
                                   again took an active role in the discussion about sustainable executive compensation.

                                   Boost in Sarasin’s reputation for sustainable and responsible asset management
                                   With a market share of 27%, Bank Sarasin is the market leader in sustainable asset management
                                   in Switzerland. In 2011, it was awarded the title of Best Cross-Regional Sustainable Bank of
                                   the Year in the Sustainable Finance Awards 2011 of the Financial Times and the International
                                   Finance Corporation.

                                   Sustainable approach to nuclear power and controversial weapons policy
                                   Bank Sarasin’s sustainability analysis proved its worth in the past six months: equities and
                                   bonds of businesses that generate more than 5% of their revenue from the production of
                                   nuclear energy were and are eliminated from all sustainable investment funds and all
                                   discretionary portfolio management mandates that are managed from Switzerland.
                                     In 2011, Bank Sarasin implemented a policy involving controversial weapons. This policy
                                   defines what Sarasin considers to be controversial weapons and how it approaches them in its
                                   service provision to clients and in its own investments.

                                   Stability in assets under management
                                   Positive cash flows, currency losses and negative investment returns more or less balanced out
                                   to keep assets managed and held in custody for clients virtually stable at EUR 269.4 (270.4)
                                   billion in the first half of 2011. Assets managed by Robeco were up, although the result was the
                                   same in terms of euros because of the strong depreciation of the US dollar. Investment returns
                                   at Sarasin and the local Rabobanks had a negative effect on assets, while Robeco and Schretlen
                                   achieved positive returns. At group level, managed assets can be broken down as follows
                                   among Rabobank Group’s subsidiaries:
                                   - Robeco: EUR 149.3 (149.6) billion;
                                   - Sarasin: EUR 83.1 (82.5) billion;
                                   - Schretlen & Co: EUR 8.6 (8.4) billion;
                                   - Rabo Real Estate Group: EUR 7.3 (7.2) billion.
                                   The local Rabobanks have the other client assets in custody. Total inflow of assets into the asset
                                   management business was EUR 7.3 (9.7) billion. Of this amount, EUR 3.2 billion was attributable to
                                   Sarasin and EUR 4.9 billion to Robeco. The local Rabobanks experienced a limited outflow of assets.
                                   The inflow into Robeco subsidiaries Transtrend and Harbor Capital Advisors was EUR 1.0 billion and
                                   EUR 1.1 billion respectively. In addition, Robeco’s sales offices contributed EUR 2.8 billion in assets.
                                     The stock markets showed a mixed picture in the first six months of 2011 and bond funds
                                   yielded moderate returns. This resulted in a negative return on investment of EUR 2.5 billion
                                   on balance.


 Assets under management and held in custody for clients                Changes in assets under managment and held in custody for clients
 by asset category                                                      in billions of euros

                                                                        280
                                                                        270
  Equity                   47%
  Fixed income             28%                                          260
  Mixed                    10%                                          250
  Money market              6%
                                                                        240
  Alternatives              5%
  Real estate               3%                                          230
  Other                     1%                                          220
                                                                                                         Exchange results
                                                                                  31-12-2010



                                                                                               Cash ow




                                                                                                                            Investment resluts



                                                                                                                                                 Sale Robeco France



                                                                                                                                                                      Other



                                                                                                                                                                              30-06-2011




  29
Asset management
                                     Financial results of asset management
                                     Results (in millions of euros)
                                                                                                      2011-I        2010-I        Change
                                     Interest                                                            82            80            3%
                                     Commission                                                        499            424           18%
                                     Other results                                                     110           (31)               
                                     Total income                                                      691            473           46%
                                     Staff costs                                                       307            266           15%
                                     Other administrative expenses                                     140            133            5%
                                     Depreciation and amortisation                                       59            56            5%
                                     Total operating expenses                                          506            455           11%
                                     Gross result                                                      185             18               
                                     Value adjustments                                                     -             -              
                                     Operating profit before taxation                                  185             18               
                                     Taxation                                                            50            17               
                                     Net profit                                                        135              1               

                                     Assets (in billions of euros)                                30- Jun-11     31-Dec-10              
                                     Assets under management and held in custody for clients         269.4          270.4
                                                                                                                                       
                                     Number of employees (in FTEs)                                   3,104          3,070            1%



                                     Notes to financial results of asset management
                                     Income up 46%
                                     Total income from the asset management business rose by 46% in the first half of 2011 to
                                     reach EUR 691 (473) million. Average assets managed over the period were up on the first half
                                     of 2010, causing commission income to grow by 18%, rising to EUR 499 (424) million. Interest
                                     income was virtually stable at EUR 82 (80) million. In 2011, Sarasin saw its income from trading
                                     activities recover from a low point in 2010. This contributed to the EUR 141 million increase in
                                     other income to EUR 110 (-31) million.

                                     Operating expenses up 11%
                                     Owing mainly to the strong appreciation of the Swiss franc and – to a lesser extent – the broadening
                                     of Sarasin’s activities, staff costs increased by 15% to EUR 307 (266) million. This increase was
                                     a factor in the 11% rise in total expenses of the asset management business in the first half of
                                     2011 to EUR 506 (455) million. Despite the appreciation of the Swiss franc, other administrative
                                     expenses were up no more than 5%, rising to EUR 140 (133) million, not in the least thanks
                                     to Robeco’s cost reduction programme. Depreciation and amortisation charges rose by 5%
                                     to EUR 59 (56) million. The headcount of the asset management business saw a slight 1%
                                     increase to 3,104 (3,070) FTEs.




   30
Interim Report 2011 Rabobank Group
Leasing


www.delagelanden.com



 Share in net pro t           Strong increase in net profit thanks to higher interest
 Rabobank Group 2011-I
                              income and lower bad debt costs
                              In the first half of 2011, higher interest income and lower bad debt costs fuelled
                              a EUR 53 million increase in net profit at De Lage Landen to EUR 154 million.
                              Volumes were up and margins improved, leading to higher interest income, as a
                              result of active portfolio management. In combination with a recovery of residual
                              value gains, this had an upward effect on income. Moreover, the economic recovery
                              and rigorous risk management drove a sharp 58-point drop in bad debt costs to
Leasing                  8%
                              44 basis points. The efficiency ratio stood at 60.8%.
                                Owing, in part, to the depreciation of the US dollar, lending at De Lage Landen saw
                              only a limited increase to EUR 25.9 billion. The food and agri share of the portfolio
                              was 26.9%. The consumer credit portfolio saw a EUR 0.3 billion increase to EUR 1.3
                              billion thanks to the acquisition of a consumer credit portfolio from Achmea.
                                The Clean Technology business unit, which was formed in 2010, stepped up its
                              activities, developing specific finance options and related expertise in concert
                              with Rabobank.


                              Vendor Finance well on course
                              De Lage Landen’s Vendor Finance division is well on course towards developing its plans.
                              Portfolio growth was achieved in the period under review by fundamentally exploring how
                              existing customers could best be supported. The Clean Technology business unit also stepped
                              up its activities, developing specific finance options and related expertise in concert with
                              Rabobank. New deals were closed, for instance, for funding solar panels and sustainable
                              lighting products.
                                 De Lage Landen concluded a partner agreement with Philips Lighting for the Benelux and
                              Scandinavia. Under the Philips Lighting Capital label, the two parties will offer finance solutions
                              for innovative LED lighting and sustainable lighting systems for such sectors as greenhouse
                              horticulture and education.

                              Acquisition of Achmea consumer credits
                              In the first half of 2011, De Lage Landen acquired a consumer credit portfolio containing several
                              Achmea labels. De Lage Landen is now responsible for servicing all these labels. Being a specialist
                              in consumer loans, De Lage Landen is well-placed to improve service quality and keep fees low.
                              These are key aspects in the consumer credit market because pricing is one of its main marketing
                              instruments. Some of the portfolio will be transferred to Freo, De Lage Landen’s online consumer
                              credit label. Freo has ambitious growth plans and this acquisition marks a leap forward in realising
                              these plans. De Lage Landen’s consumer credit portfolio grew by EUR 0.3 billion, reaching EUR 1.3
                              (1.0) billion in the first six months of 2011.




   31
Leasing
                                     Third Service Centre for Athlon
                                     Athlon Car Lease, an international provider of operating leases for cars with activities in nine
                                     European countries, is a division of De Lage Landen. Globally, Athlon Car Lease operates about
                                     210,000 (206,000) leases; it is market leader in the Dutch car leasing market with 126,000 leases.
                                     Athlon Car Lease opened its third service centre in the Netherlands in 2011. With it, the company
                                     wants to meet the need among lease car operators for a centralised location where all maintenance
                                     and repair works can be carried out.

                                     Four-pillar CSR strategy at De Lage Landen
                                     De Lage Landen’s CSR strategy has four spearheads: sustainable and innovative leasing solutions,
                                     ethical and responsible business practices, eco-efficiency, and community involvement. These pillars
                                     are reflected in the day-to-day service provision and in developing partnerships with vendors.

                                     Developing sustainable and innovative solutions
                                     De Lage Landen subjected its portfolio of financed clients to a sustainability review. This helps
                                     the company test relevant sectors and industries for sustainability aspects. It was decided in
                                     addition to start monitoring the portfolio for financed sustainable products, which will allow
                                     De Lage Landen to gear its marketing to sustainability aspects of the financed asset going
                                     forward. De Lage Landen is also placing more focus on the full life cycle of leased assets.
                                     For this purpose, it has started to explore options for teaming up with partners where
                                     refurbishment and remanufacturing are concerned.
                                       De Lage Landen subsidiary Athlon Car Lease plans to develop into a one-stop shop for electric
                                     vehicles in the years ahead. Athlon currently operates about 125 electric cars. Its ambitions are
                                     greater than that, however. To realise its plans, it is working on partnerships with European energy
                                     suppliers in order to create charging facilities for electric cars. It has also teamed up with car
                                     manufacturers such as Renault, Opel and Tesla; about 250 electric cars are already on order.
                                     Athlon also focuses on battery leasing and analysing the residual values of electric vehicles.

                                     Community involvement through sponsoring
                                     De Lage Landen will again be sponsoring the Eindhoven Marathon for the next five years and
                                     plans to develop its sponsoring into a partnership between both parties so as to make the
                                     Eindhoven Marathon a grand event with record-breaking performances. De Lage Landen
                                     collaborates with the Worldwide Wildlife Fund (WWF) in the Clipper Round the World Race,
                                     within which scope nine employees from different countries will sail around the world. In this
                                     project, the leasing business hones in on WWF projects and donates financial resources to
                                     these projects. Focus is on water quality, maritime diversity and renewable energy.

                                     Moderate growth in lending
                                     On a global level, De Lage Landen endeavours to further increase the share of food and agri in
                                     its portfolio. This underpins Rabobank Group’s international strategy. The food and agri share of
                                     the portfolio was up 1% to EUR 7.0 (6.9) billion in the first half of 2011, corresponding to 27% of
                                     the total portfolio. The US dollar fell by 8% in the period under review, weighing down the euro
                                     value of the US loan portfolio. This was one of the factors in limiting the increase in total
                                     lending at De Lage Landen to EUR 25.9 (25.7) billion. The share of lending in Asia continued to
                                     increase. The car lease portfolio was stable at EUR 2.6 (2.6) billion in the first half of 2011.


 Loan portfolio                                                            Loan portfolio by region
 in billions of euros                                                      mid-2011


   Vendor Finance                    30
   Consumer Finance
                                     25
   Car Lease
   Healthcare and Clean Technology   20
   Construction, Transportation      15
   and Industrial
                                     10
   Financial Institutions                                                   Europe                    56%
   O ce Technology                   5                                      America                   38%
   Food and agriculture              0                                      Asia/Paci c                6%
                                           30-06 31-12 30-06 31-12 30-06
                                           2009 2009 2010 2010 2011



   32
Interim Report 2011 Rabobank Group
          Financial results of leasing
          Results (in millions of euros)
                                                            2011-I      2010-I   Change
          Interest                                           370          318     16%
          Commission                                           36          41     -12%
          Other results                                      239          211     13%
          Total income                                       645          570     13%
          Staff costs                                        219          200     10%
          Other administrative expenses                      145           98     48%
          Depreciation and amortisation                        28          19     47%
          Total operating expenses                           392          317     24%
          Gross result                                       253          253         
          Value adjustments                                    54         120     -55%
          Operating profit before taxation                   199          133     50%
          Taxation                                             45          32     41%
          Net profit                                         154          101     52%
                                                                                      
          Bad debt costs (in basis points)                     44         102     -57%

          Ratios                                                                       
          Efficiency ratio                                60.8%        55.6%          
          RAROC                                           26.8%        18.6%          

          Balance sheet (in billions of euros)          30- Jun-11   31-Dec-10         
          Loan portfolio                                     25.9        25.7       1%

          Capital requirements (in billions of euros)                                  
          Capital requirement                                 1.2         1.2         
          Economic capital                                    1.2         1.1         
                                                                                      
          Number of employees (in FTEs)                    4,884        4,835       1%




   33
Leasing
                                     Notes to financial results of leasing
                                     Income up 13%
                                     Total income at De Lage Landen was up 13% in the first half of 2011, rising to EUR 645 (570)
                                     million. Interest income rose by 16% to EUR 370 (318) million as a result of improved margins
                                     on new products sold. Commissions fell by EUR 5 million, landing at EUR 36 (41) million. Higher
                                     residual value gains on leased cars and other lease products fuelled a 13% increase in other
                                     income to EUR 239 (211) million.

                                     Operating expenses up 24%
                                     Owing in particular to an increase in other administrative expenses, total operating expenses
                                     at De Lage Landen rose by 24% to EUR 392 (317) million in the period under review. Staff costs
                                     were up 10%, reaching EUR 219 (200) million, due, in part, to an increase in headcount and
                                     periodic salary increases. The 48% rise in other administrative expenses to EUR 145 (98) million
                                     was largely attributable to accelerated amortisation of self-developed software. Depreciation
                                     and amortisation charges stood at EUR 28 (19) million.

                                     Bad debt costs at 44 basis points
                                     The quality of the lease portfolio improved thanks to rigorous risk management and an upswing
                                     in the economy, tempering De Lage Landen’s value adjustments markedly by 55% to EUR 54
                                     (120) million in the first half of 2011. Bad debt costs corresponded to 44 (102) basis points of
                                     average lending, which is 25 basis points below the long-term average of 69 basis points.

                                     Stability in external capital requirement
                                     De Lage Landen’s capital requirement was stable at EUR 1.2 (1.2) billion in the first half of 2011.
                                     The required economic capital, i.e. the internal capital requirement, grew by 9%, rising to
                                     EUR 1.2 (1.1) billion.




   34
Interim Report 2011 Rabobank Group
Real estate


www.raborealestategroup.com



 Share in net pro t           Increase in residential property transactions, lending and
 Rabobank Group 2011-I
                              managed assets
                              Despite the continually poor market for Rabo Real Estate Group, Bouwfonds Property
                              Development managed to achieve 9% growth in the number of homes sold to 3,567.
                              Sales in France and Germany contributed to this increase in particular. MAB
                              Development developed commercial properties for an amount of EUR 126 (131)
                              million. Lending at FGH Bank was up 4%, rising to EUR 18.5 billion.
                                Value adjustments in the first half of the year were limited to EUR 49 million, which
Rabo Real Estate Group   4%
                              corresponds to bad debt costs of 49 basis points of average lending. Managed
                              assets at Bouwfonds REIM saw a limited increase, rising to EUR 7.3 billion. Rabo Real
                              Estate Group’s net profit rose by EUR 2 million, landing at EUR 68 million.
                                In order to take a unified approach to sustainable building, Rabo Real Estate defined
                              three principles for a group-wide approach in the first half of 2011: promoting the
                              sustainable use of natural resources, helping users achieve their property ambitions
                              and improving the quality of the living environment.


                              Hearings in Klimop case
                              In the spring of 2011, the first hearings were held in the criminal proceedings against a
                              network suspected by the Public Prosecutor of large-scale property fraud at the legacy
                              Bouwfonds organisation and the Philips Pension Fund. The suspects include a number of
                              former employees of the legacy Bouwfonds organisation. Some of them will be tried for
                              membership of a criminal organisation. Expectations are that the hearings in the first instance
                              will be finished by the end of 2011.
                                Irrespective of the criminal proceedings, the Public Prosecutor’s Office, the Philips Pension
                              Fund and Rabo Real Estate Group again negotiated repayment schedules in the period under
                              review with a number of suspects in the case. Rabo Real Estate Group is preparing civil suits
                              against parties that defrauded the legacy Bouwfonds organisation and with whom no repayment
                              schedules have been agreed as yet.
                                In addition, as part of Customer Due Diligence (CDD), more in-depth investigations were
                              conducted, where appropriate, into parties mentioned in, or associated with, the fraud case.
                              Mindful of Rabo Real Estate Group’s CDD policy, these parties were given a CDD classification
                              based on available information. This has led to Rabo Real Estate Group severing ties with a
                              number of customers.

                              Dutch Central Bank policy rule incorporated into integrity procedure
                              In the spring of 2011, the Dutch Central Bank (DNB) published the Policy Rule on Integrity
                              in Commercial Real Estate Operations. In it, DNB stipulated that financial institutions, in their
                              statutory integrity policy and the procedures and measures based on it (including sound
                              Customer Due Diligence practices), should make allowance for increased integrity risks
                              associated with commercial property transactions. The crux of this policy rule has been
                              incorporated into Rabo Real Estate Group’s CDD policy. The policy rule is expected to be
                              fleshed out on a divisional basis in the second half of 2011.




   35
Real estate
                                       Group-wide principles for sustainable building
                                       In addition to integrity in business, responsible business practices and community involvement,
                                       sustainable building is one of the four building blocks of Rabo Real Estate Group’s CSR Statute.
                                       The different markets in which Rabo Real Estate Group operates each come with their own set
                                       of sustainable building standards. In order to lend practical application to the concept of
                                       sustainable building, Rabo Real Estate Group has defined three principles for a group-wide
                                       approach: promoting the sustainable use of natural resources, helping users achieve their
                                       property ambitions and improving the quality of the living environment.
                                          In the period under review, the integration of corporate social responsibility into Rabo Real
                                       Estate Group’s business practices prompted Bouwfonds Property Development, in close
                                       dialogue with Rabobank Nederland, to explore options for further broadening the borrowing
                                       capacity for energy-efficient new-build properties. This was driven specifically by the new code
                                       of conduct for mortgage loans and the so-called Spring Accord that has been in effect since
                                       early this year; it dictates that new-builds should be 25% more energy-efficient than stipulated
                                       in the prior-year Buildings Decree. One of the outcomes of the investigation was an updated
                                       housing costs calculator, which is based not only on the parameters used by the Dutch
                                       National Institute for Budget Advice (Nibud), but also takes into account the type of dwelling
                                       and, most importantly, that dwelling’s energy efficiency.
                                          MAB Development further developed its sustainability procedures and embedded them in
                                       its business practices. Sustainability was given a more prominent position, both in decision-
                                       making processes and in the reporting structure. In addition, MAB Development devised an
                                       internal tool that helps to calculate the BREEAM rating of property developments on the basis
                                       of objective criteria. At property development level, MAB Development attaches ever greater
                                       importance to sustainability aspects.
                                          Together with Bouwfonds REIM, FGH Bank was a founding member of the International
                                       Sustainability Alliance. During Provada, the annual real estate platform, they joined other large
                                       Dutch property financiers in signing a sustainability covenant in order to stress the importance
                                       of sustainability for the sector.
                                          Bouwfonds REIM also went on to embed sustainability aspects in its strategy and day-to-day
                                       operations. Being one of the building blocks, sustainability is reflected in acquisitions and in
                                       measuring the level of sustainability in the current portfolio. Bouwfonds REIM developed the
                                       LOG model, which supplements the Municipal Practice Guideline for Buildings (GPR). This
                                       model centres on the location, the premises and the user of a property.

                                       Increase in residential property transactions at Bouwfonds Property Development
                                       Bouwfonds Property Development sold 3,567 (3,280) homes in the first half of 2011, which
                                       corresponds to a 9% increase on the same period in 2010. This increase was primarily attributable
                                       to higher sales in France and Germany, where the housing market is normal. The Dutch housing
                                       market did not yet show signs of recovery with the number of homes sold by Bouwfonds
                                       Property Development falling by 5%. A total of 2,206 (2,314) homes were sold until 1 July. On a
                                       more positive note, both the number of unsold homes under construction and the number of
                                       unsold completed homes saw a considerable drop.

 Breakdown of homes sold 2011-I                                         Drop in construction of commercial real estate at MAB
 by country
                                                                        Development
                                                                        MAB Development developed commercial properties for an
                                                                        amount of EUR 126 (131) million in the first half of 2011. At 30
                                                                        June 2011, 506,743 (561,337) m³ of commercial real estate
   The Netherlands               54%
                                                                        was in the process of being constructed. This market is
   France                        37%
   Germany                        7%                                    struggling with saturation and a low activity level, which
   Other                          2%                                    affects the lettability and saleability of new developments. For
                                                                        this reason, MAB Development is now focusing on
                                                                        redevelopment opportunities. This division had nine
                                                                        developments under construction at the end of June 2011




   36
Interim Report 2011 Rabobank Group
 Loan portfolio                                                                        Limited increase in lending at FGH Bank
 in billions of euros
                                                                                       There were no material changes in the commercial real estate
                                            20                                         market in the period under review compared with the first
                                            16                                         half of 2010. Although there continues to be interest in
                                            12                                         properties subject to a long-term lease at top locations, the
                                            8                                          rest of the market is still characterised by low transaction
                                            4                                          volumes. Lending at FGH Bank saw a limited 4% rise to
                                            0                                          EUR 18.5 billion.
                                                   30-06 31-12 30-06 31-12 30-06
                                                   2009 2009 2010 2010 2011
                                                                                       Limited increase in assets managed by
                                                                                       Bouwfonds REIM
                                            As investors continued to be hesitant to invest in unlisted property funds, Bouwfonds REIM
                                            introduced only few new funds in the first half of 2011. The division did prepare thoroughly for
                                            fund introductions that are planned for a later date. It also made acquisitions for a number of
                                            existing funds. Bouwfonds REIM announced a second European parking fund for institutional
                                            investors, which is set to invest in a pan-European portfolio of parking structures. In addition,
                                            Bouwfonds REIM entered into an alliance with a Belgian partner as part of the introduction of a
                                            new investment fund that will give private investors the opportunity to invest in high-quality
                                            retail properties in the Benelux. Other new initiatives were the US Multifamily Fund, which
                                            invests in US rental properties for Dutch private investors, and the Holland Fund, which allows
                                            German private investors to invest in Dutch office space. Managed assets at Bouwfonds REIM
                                            saw a limited increase, rising to EUR 7.3 (7.2) billion.



                                            Financial results of real estate
                                            Results (in millions of euros)
                                                                                                                   2011-I        2010-I       Change
                                            Interest                                                                138            120          15%
                                            Commission                                                               21             15          40%
                                            Other results                                                           129            109          18%
                                            Total income                                                            288            244          18%
                                            Staff costs                                                             100             92           9%
                                            Other administrative expenses                                            42             40           5%
                                            Depreciation and amortisation                                             4               4            
                                            Total operating expenses                                                146            136           7%
                                            Gross result                                                            142            108          31%
                                            Value adjustments                                                        49             19             
                                            Operating profit before taxation                                         93             89           4%
                                            Taxation                                                                 24             24           0%
                                            Half-year profit Rabo Real Estate Group⁴                                 69             65           6%
                                            Non-controlling interest                                                  1             (1)
                                            Net profit Rabo Real Estate Group⁴                                       68             66           3%
                                            Other                                                                    19             13          46%
4 The ‘Half-year profit Rabo Real           Net profit Real estate division                                          87             79          10%
Estate Group’ and ‘Net profit Rabo Real                                                                                                            
Estate Group’ items correspond to the       Bad debt costs (in basis points)                                         49             23             
financial results published by Rabo Real                                                                                                           
Estate Group itself. The ‘net profit real   Number of houses sold                                                 3,567          3,280           9%
estate division’ item is inclusive of the
amortisation and financing charges          Other information (in billions of euros)                           30- Jun-11     31-Dec-10             

that were incurred due to the               Loan portfolio                                                         18.5           17.8           4%
acquisition of the legacy Bouwfonds         Assets under management                                                  7.3            7.2          1%
organisation and the harmonisation of                                                                                                              
accounting policies.                        Number of employees (in FTEs)                                         1,598          1,559           3%




   37
Real estate
                                     Notes to financial results of real estate
                                     Income up 18%
                                     Interest income was up 15%, reaching EUR 138 (120) million, because of growth in lending,
                                     higher margins on new loans and loan renewals, as well as favourable developments in the
                                     interest rate structure. Thanks, in part, to new loans and loan renewals, commissions increased
                                     by 40% on the first half of 2010, landing at EUR 21 (15) million. Other income saw an 18% rise
                                     to EUR 129 (109) million thanks, in part, to an increase in residential property transactions and
                                     better margins on homes sold. Rabo Real Estate Group’s total income was up 18% to EUR 288
                                     (244) million in the first half of 2011.

                                     Operating expenses up 7%
                                     Total operating expenses at Rabo Real Estate Group rose by 7% to EUR 146 (136) million in the
                                     first half of 2011. Owing, in part, to an increase in headcount, staff costs were up 9% to EUR 100
                                     (92) million. The total headcount at Rabo Real Estate Group showed a modest 3% increase to
                                     1,598 (1,559) FTEs, which was chiefly attributable to growth in employee numbers at
                                     Bouwfonds Property Development in France and Germany, and at FGH Bank. Other
                                     administrative expenses stood at EUR 42 (40) million, and depreciation and amortisation
                                     charges amounted to EUR 4 (4) million.

                                     Bad debt costs at 49 basis points
                                     Although the effects of the continuing poor property market are relatively limited, they do
                                     have an impact on FGH Bank’s loan portfolio. In the difficult market, value adjustments stood
                                     at EUR 49 (19) million in the first six months of 2011 while loan losses remained limited thanks
                                     to rigorous risk management. Bad debt costs rose to 49 (23) basis points of average lending.




   38
Interim Report 2011 Rabobank Group
Risk management


www.rabobank.com/ir



                      Rabobank Group pursues a prudent risk policy aimed at maintaining a moderate
                      risk profile. This was underlined by the solid outcomes of the EBA stress test. The risk
                      profile of Rabobank Group’s loan portfolio improved somewhat, but the fall-out
                      from the EHEC crisis for greenhouse vegetable growers and the late-cyclical nature
                      of the (worldwide) construction and real estate sector caused a limited increase in
                      value adjustments compared to the first half of 2010. Rabobank only has a very
                      limited exposure to European government bonds that are currently perceived by
                      the markets as being less creditworthy. This however does not make her immune to
                      a further worsening of the sovereign debt crisis. The capital position was further
                      strengthened and the liquidity position remained strong. The full-year budget for
                      long-term funding was already entirely raised in the first half of 2011.

                      Stress testing
                      Stress tests form an essential part of the risk management framework. Stress tests are used to
                      measure the impact of extreme, yet plausible events on Rabobank. In 2011, the impact of several
                      internal scenarios as well as some external scenarios developed by regulators, including the
                      European Banking Authority and the Dutch Central Bank (DNB), was assessed. This set of scenarios
                      was first translated into macro-economic consequences, and then into an impact on the bank.
                      For each of the scenarios, a separate review was performed of its impact on the statement of
                      income, the capital and the solvency position of the bank. The outcomes of the scenarios were
                      then reported and discussed with the Executive Board and the Supervisory Board. Besides the
                      stress testing activities for the Rabobank Group, stress scenarios were also developed for specific
                      portfolios of the bank. The outcomes of the EBA stress tests underline the robust position of
                      Rabobank Group. The core tier 1 ratio of 10.8% after two years of stress, is more than twice the
                      minimum requirement of 5% that is needed to pass the stress test.

                      Credit risk
                      Credit risk management at Rabobank Group is robust and organised so as to ensure an
                      acceptable risk profile even in less favourable economic circumstances. Each new loan
                      application is assessed carefully and accepted only if the borrower is deemed to have a
                      sufficient continuity perspective. Loans that have already been granted are managed and
                      monitored rigorously.
                         In its loan approval process, Rabobank Group uses the Basel II parameters and RAROC, so that
                      credit analysts and credit committees are even better positioned to make balanced credit
                      decisions. The Rabobank Risk Rating indicates the probability of default (PD) of a borrower, with
                      the rating being non-cyclical in principle. At 30 June 2011, the exposure at default (EAD)
                      weighted average PD of Rabobank Group’s total performing Advanced IRB loan portfolio was
                      1.18% (1.21%). It should be noted that this PD only reflects the extent to which the bank expects
                      clients to be able to fulfil their contractual obligations. The PD does not provide any indication as
                      to the potential losses, because Rabobank Group has in many cases obtained additional collateral.
                      This is reflected in the loss given default (LGD), which also takes the possibility of restructuring
                      into consideration. The LGD is the estimated economic loss that would result if the debtor
                      defaults, expressed as a percentage of the EAD. At 30 June 2011, the LGD percentage of the total
                      Advanced IRB loan portfolio was 22.5% (22.0%). The EAD of Rabobank Group’s Advanced IRB loan
                      portfolio amounted to EUR 553 (546) billion at the end of the period under review.



  39
Risk management
                                     Allowance for loan losses
                                     The economic recovery will continue into 2011, and growth in the Netherlands will be around
                                     a moderate 2%. Many uncertainties, of which the European public debt crisis is the most
                                     important, are causing downside risks in terms of economic developments. The risk profile of
                                     Rabobank Group’s loan portfolio improved slightly. However, the fall-out from the EHEC
                                     outbreak for greenhouse vegetable growers and the late-cyclical nature of the global
                                     construction and real estate sector caused a limited increase in value adjustments compared
                                     with the first half of 2010. At group level, value adjustments increased in the first half of 2011
                                     to EUR 618 (569) million, which, on an annualised basis, corresponds to bad debt costs of 29
                                     (27) basis points of average lending.
                                        The allowance for loan losses stood at EUR 4,252 (4,014) million. When allowances are taken,
                                     the one-obligor principle is applied, which means that the exposure to all counterparties
                                     belonging to the same group is taken into account. In addition, the full exposure to a client is
                                     then qualified as impaired, even if adequate coverage is available for part of the exposure in
                                     the form of securities or collateral. Finally, Rabobank Group always takes allowances at an early
                                     stage. The table below breaks down the impaired loans and allowances for loan losses in total
                                     lending. The amount for impaired loans at 30 June 2011 was EUR 9,669 (9,284) million. The
                                     allowance for loan losses covered is 44% (43%) of the impaired loans. Impaired loans
                                     correspond to 2.2% (2.1%) of the private sector loan portolio at 30 June 2011.



                                     Impaired loans and allowances
                                                                                          30- Jun-11                            31-Dec-10

                                                                                      Impaired                              Impaired
                                     (in millions of euros)                             loanes         Allowances             loanes        Allowances
                                     Domestic retail banking                             4,628             2,430              4,462              2,261
                                     Wholesale- and international
                                      retail banking                                     3,267             1,141              2,999              1,130
                                     Leasing                                               874                 482              960                464
                                     Real estate                                           831                 137              793                  95
                                     Other                                                  68                  63               70                  64
                                     Rabobank Group                                      9,669             4,252              9,284              4,014


                                     Sovereigns
                                     In its investment and trading portfolios, Rabobank Group only has very limited exposure to
                                     European government bonds issued by the countries shown below, which are currently
                                     perceived by the markets as less creditworthy.


                                     Country                                   Net exposure after impairment   Cumulative changes through profit or loss
                                     (in millions of euros)                                   at 30-Jun-2011                            at 30-Jun-2011
                                     Italy                                                             347                                             -
                                     Greece                                                            211                                         104
                                     Spain                                                               69                                            -
                                     Ireland                                                             45                                           6
                                     Portugal                                                            18                                           1
                                     Total                                                             690                                         111


                                     The Greek, Portuguese and almost all Italian and Spanish Government bonds involve available-for-
                                     sale financial assets. It has been established, based on our accounting policies, that impairment
                                     losses need to be recognised; these positions have been impaired to their market value at 30 June
                                     2011. The Irish exposure involves positions whose changes in value are recognised directly through
                                     profit or loss. Rabobank Group is currently evaluating the different alternatives for its contribution to
                                     resolving the Greek debt crisis.

                                     Structured credit
                                     Structured credit exposure in the trading and investment portfolios at 30 June 2011 stood at
                                     EUR 5.1 (5.8) billion.



   40
Interim Report 2011 Rabobank Group
 Structured credit exposure                                                Structured credit exposure rating distribution
 in billions of euros, mid-2011                                            mid-2011


   Non-subprime RMBS              2.1
   CDO/CLO and other
   corporate exposures            1.6
   Commercial real estate         0.9                                       AAA                        44%
   Other ABS                      0.2                                       AA                         18%
   US subprime                    0.2                                       A                          26%
   ABS CDO                        0.1                                       Below A                    12%




                                        Monoline insurers are counterparties in some credit default swaps used to hedge the credit
                                        risk of certain investments. The counterparty risk on the monoline insurers before provisioning
                                        was EUR 1,227 (1,330) million at 30 June 2011. The total provision was EUR 1,068 (1,114)
                                        million, reducing the remaining counterparty risk to EUR 160 (216) million. This counterparty
                                        risk arises if the fair value of the underlying investments decreases, or as other insured
                                        investments potentially lead to claims for payment being filed with the insurers. In measuring
                                        the economic counterparty risk, time aspects and the credit quality of the investments have
                                        been taken into account. As the vast majority of counterparty risk has already been provided
                                        for, further downgrades have only a minor impact.
                                           Changes in market values and provisions in the first half of 2011 had only very minor result
                                        consequences for the aforementioned exposures.

                                        Funding and liquidity risk
                                        Rabobank Group manages its funding and liquidity risk by strictly limiting outgoing cash
                                        flows within the wholesale banking business, by maintaining a large liquidity buffer and by
                                        raising sufficient long-term funding in the international capital market. The retail banking
                                        division is expected to be largely self-funded by raising customer deposits. In the first half
                                        of 2011, this was more than achieved as amounts due to customers increased more than
                                        the growth in lending.
                                           In the first half of 2011, more than EUR 30 billion in long-term funding was raised in the
                                        international capital markets. This means that the target for the full year has been achieved in
                                        the first six months. Given the flare-up of the international debt crisis, allowance is made for
                                        more difficult market circumstances in the second half of the year. Equity was strengthened by
                                        the issue of hybrid capital for an amount of USD 2 billion.
                                           The Dutch Central Bank has tightened its liquidity requirements with effect from 1 May. This
                                        move, in anticipation of Basel III, primarily involves the definition of liquid assets and the
                                        haircuts to be applied. The available liquidity easily exceeded the requirement, even when
                                        applying the stricter rules. At 30 June 2011, the outstanding amount in asset-backed
                                        commercial paper totalled EUR 10.1 (14.0) billion.

                                        Disclosures as required by Section 5:25d of the Dutch Financial Supervision Act
                                        This interim report includes not only a summary of key events in the first six months of 2011,
                                        including any related effects on the interim financial statements, but also contains a
                                        description of the principal risks and uncertainties in the remaining six months of 2011.
                                        Besides the issue of Capital Securities, no material events and transactions occurred in the first
                                        six months of 2011. More details on Rabobank’s outlook for the six months ahead can be found
                                        in this chapter and in the Chairman’s foreword.

                                        Principal risks and uncertainties in the six months ahead
                                        Rabobank Group expects to see moderate growth in lending and amounts due to customers
                                        in the second half of 2011. Despite the current turmoil in the financial markets and the
                                        prospect of increasing competition on the Dutch savings market, Rabobank is optimistic about
                                        the level of its profits for the full year 2011.




   41
Risk management
                                     It goes without saying that Rabobank Group will face a number of risks and uncertainties in
                                     the second half of the year that might have a material effect on earnings, equity and cash
                                     flows. The principal risks lie in the effects of a further downturn in the financial markets. In
                                     addition, the new flare-up in the European debt crisis in combination with the debt ceiling
                                     crisis in the US, for which no lasting solution has been formulated as yet, might cause
                                     unexpected currency fluctuations. A decline in the financial markets may well have a material
                                     effect on such issues as growth in lending, the measurement of impaired assets, the capacity to
                                     raise customer deposits, debt securities and/or hybrid capital, and the scale of assets under
                                     management. Such deterioration could potentially result in a substantial drop in interest and
                                     commission income, an increase in impairment losses, and a rise in value adjustments.
                                        Regulatory amendments, including changes in the Deposit Guarantee Scheme and the
                                     planned introduction of a bank tax, are not yet expected to have a major impact on earnings in
                                     the second half of 2011.
                                        .




   42
Interim Report 2011 Rabobank Group
Working together towards a
sustainable future

www.rabobank.com/csr



                                            Rabobank Group places high demands on its service provision and its corporate
                                            social responsibility (CSR) policy. In 2010, every group entity formulated its own
                                            CSR KPIs, and from 2011 these entities will be required to submit quarterly reports
                                            on these KPIs. Furthermore, a biodiversity policy was developed and the human
                                            rights policy was updated in the first half of 2011. In addition, the expertise of the
                                            area of CSR and Cooperation was combined to form the Department Cooperation
                                            & Sustainability. Rabobank also entered into a four-year partnership with the
                                            World Wildlife Fund (WWF) in March 2011. The CO₂ reduction target that
                                            Rabobank set for itself – a 20% reduction per FTE between 2008 and 2013 – has
                                            already been largely achieved.

                                            Responsible business practices to secure a sustainable future
                                            Rabobank Group is committed to building a sustainable society in an economic, social and
                                            ecological sense. Mindful of this, its services and policies must satisfy strict CSR requirements in
                                            relation to the environment, society and governance. Customers should know that the services
                                            we provide are responsible and transparent. Furthermore, Rabobank Group is committed to
                                            improving the sustainability of the value chains in all its core business activities. Based on our
                                            cooperative identity, we do this by engaging in partnerships with customers and other
                                            stakeholders. Corporate social responsibility is increasingly becoming integrated into the core
                                            business of Rabobank Group. This means that we endeavour to make the most of commercial
                                            opportunities that generate customer value. At the same time, we are focused on managing
                                            and mitigating risks associated with people, society and the environment.
                                              The importance of sustainability for our clients is expounded on various occasions by the
                                            members of the Executive Board for groups of clients and partners. The opening of the highly
                                            sustainable office building of Rabobank Nederland was one such occasion.

                                            Strategy based on central CSR themes and objectives
                                            Pursuing a sound CSR policy forms part of the Rabobank Group’s strategy. This policy is
                                            focused on four central themes:
                                            - working towards a safe and sustainable food supply;
                                            - innovating production methods and encouraging the efficient use of renewable energy;
                                            - promoting equal opportunity and economic participation;
                                            - encouraging local cohesion and partnership both in and outside the Netherlands.

                                            The following key performance indicators were developed at group level in relation to
                                            these central themes (CSR KPIs):
                                            - helping clients move towards clean and sustainable business operations;
                                            - helping clients make responsible investments;
                                            - supporting community partnerships;
                                            - promoting climate-neutral and energy-efficient services.




   43
Working together towards a sustainable future
                                     Integration of CSR into core business
                                     In 2010, the CSR KPIs were transposed by the various entities of Rabobank Group into
                                     performance indicators. Starting in 2011, these have also been the subject of internal
                                     reporting. Considerable progress has been made towards the integration of CSR into our core
                                     business. In the domestic retail banking division, for instance, the CSR policy was developed in
                                     close connection with customer due diligence, and with a focus on transparency in the
                                     services we provide. In lending, the value chain policy has been further rolled out in such areas
                                     as risk assessment and customer relationship management. At the local Rabobanks, there has
                                     been a visible increase in CSR ambitions and in the implementation of the related policies. In
                                     asset management, clients are increasingly being informed of the CSR profile of alternative
                                     investments. This is done for clients who manage their own investments as well for those who
                                     have their investments taken care of by an investment adviser. In the real estate and leasing
                                     divisions, there is similarly clear progress in the implementation of CSR policies and the
                                     development of sales opportunities that contribute to improving the sustainability of value
                                     chains. Finally, initiatives are being deployed across Rabobank Group in all aspects of the business
                                     to improve energy efficiency, reduce emissions and implement socially responsible procurement.
                                       For the short term, the emphasis remains on further implementation of the ambitions and
                                     their further concretisation in line with developments in the market and in society.

                                     Rabobank in dialogue on animal welfare and the weapons industry
                                     In the period under review, policies were developed on how to deal with biodiversity.
                                     The human rights policy was also updated based on the Business & Human Rights framework
                                     endorsed by the United Nations in June 2011.
                                       There were two central themes in our dialogue with civil society organisations: policy on
                                     controversial weapons, and animal welfare in the pig farming industry. On the subject of
                                     controversial weapons, Rabobank explained its policy and how it is implemented to a number
                                     of civil society organisations. As for animal welfare, Rabobank made submissions to the Eerlijke
                                     Bankwijzer (Fair Bank Guide) about the ways it supports businesses and encourages them in
                                     their transition to more sustainable farming methods. We also provided information on our
                                     involvement in many initiatives to increase sustainability in the industry while referring to
                                     realistic economic conditions and global competitive relationships in pig farming that affect
                                     the economic viability of investments in animal welfare.

                                     Partnership agreement with WWF
                                     In March this year, Rabobank and the World Wildlife Fund (WWF) signed a four-year global
                                     partnership agreement. This is a strategic choice for the bank, based on the philosophy of our
                                     Food & Agribusiness Principles and our Strategic Framework. The focus of the partnership is on
                                     projects that will set the example for the bank’s customers for making the transition from
                                     mainstream production processes and chain management to a more sustainable use of natural
                                     resources, raw materials and clean technologies.

                                     Reducing the bank’s climate footprint
                                     Efforts towards frugal and efficient use of energy and a reduction in our impact on the climate
                                     are visible in all aspects of our operations. Rabobank Group wants to operate on a climate-
                                     neutral basis in 2011 too. Our CO₂ reduction target of 20% per FTE between 2008 and 2013 has
                                     largely already been achieved. This target will therefore be made even tougher in the second half
                                     of the year. Rabobank Group’s climate footprint is largely due to energy consumption and mobility.
                                     Energy saving activities will be continued or expanded. Starting in 2011 in the Netherlands, for
                                     instance, the contractual procurement of green gas has doubled from 6 million cubic metres to
                                     12 million cubic metres. In terms of mobility, Rabobank encourages the use of public transport,
                                     and the impact of its leased vehicle fleet on the environment is being reduced. This is achieved by
                                     purchasing only energy-efficient vehicles and by setting absolute standards for CO₂ emissions.
                                     Furthermore, staff with leased cars are rewarded if they choose the most energy-efficient vehicles.




   44
Interim Report 2011 Rabobank Group
                                            Greener working, greener living
                                            In 2011, the Work and Sustainability study into ways of making Rabobank’s human resources
                                            policies more sustainable was completed. The study came about as a result of the collective
                                            bargaining agreement. The ideas gained from this study will be further discussed across the
                                            Rabobank organisation and shared with other businesses.

                                            Responsible procurement
                                            Rabobank discussed sustainability in the procurement process with its suppliers. In this
                                            connection, Rabobank was one of the initiators of the FIRA Rating System, which tells
                                            procurement officers about the CSR profile of suppliers. This provides a boost to socially
                                            responsible procurement on the supply side and the demand side.
                                              This year, Rabobank was the winner of the Dutch Sourcing Award for Sustainability 2011
                                            of the Foundation for the Forward Development of Procurement. The prize was awarded for
                                            Rabobank’s approach to supplying all its offices and branches with coffee that is both EKO
                                            and Fair Trade-certified, and is sourced from coffee cooperatives that are supported by the
                                            Rabobank Foundation.
                                              The CSR criteria are applied also in all CSR-relevant procurement categories, facility services
                                            and with regard to working conditions. This has already led to a reduction in non-recyclable
                                            waste, the application of Cradle to Cradle (C2C) principles and other CSR criteria in the
                                            procurement of office furniture and other materials. The tender was so successful that, from
                                            2012 onwards, 70% of the product catalogue will be made up of sustainable products,
                                            compared to 28% until only recently. Other examples include increasing the share of organic
                                            products used by the catering service at Rabobank Nederland – from 58% in mid-2010 to 76%
                                            in mid-2011 – and trials with intelligent energy-efficient LED lighting.




   45
Working together towards a sustainable future
Interim financial information



Condensed statement of financial position
In millions of euros                                          30- Jun-2011   31-Dec-2010   30- Jun-2010


Assets                                                                                                 
Cash and cash equivalents                                         26,088         13,471         9,356
Due from other banks                                              36,993         33,511        34,095
Trading financial assets                                          12,167         12,987        12,782
Other financial assets at fair value through profit or loss        9,337          9,588        10,037
Derivative financial instruments                                  34,704         43,947        63,578
Loans to customers                                               460,118       455,941        454,224
Available-for-sale financial assets                               55,835         55,458        60,652
Held-to-maturity financial assets                                    120            218           241
Investments in associates                                          3,587          3,539         3,898
Intangible assets                                                  3,551          3,675         3,936
Property and equipment                                             6,052          6,006         6,156
Investment properties                                                786            816         1,291
Current tax assets                                                   253            357           352
Deferred tax assets                                                1,008          1,200         1,418
Employee benefits                                                  1,953          1,668         1,765
Other assets                                                      12,401         10,154        11,829
                                                                                                      
Total assets                                                     664,953       652,536        675,610
                                                                                                      




    46
Interim Report 2011 Rabobank Group
 In millions of euros                                               30- Jun-2011   31-Dec-2010   30- Jun-2010


 Liabilities                                                                                                 
 Due to other banks                                                     24,639         23,476        27,623
 Due to customers                                                      305,360       298,761        297,765
 Debt securities in issue                                              209,657       196,819        192,417
 Derivative financial instruments and other trade liabilities           41,332         49,640        72,441
 Other debts                                                            10,726          8,199         9,999
 Other financial liabilities at fair value through profit or loss       25,857         29,867        30,144
 Provisions                                                                990            979         1,080
 Current tax liabilities                                                   288            359           494
 Deferred tax liabilities                                                  853            731           612
 Employee benefits                                                         367            466           461
 Subordinated debt                                                       2,371          2,482         2,350
 Total liabilities                                                     622,440       611,779        635,386
                                                                                                            
                                                                                                            
                                                                                                            
                                                                                                           
 Total equity                                                           42,513         40,757        40,224
 Total equity and liabilities                                          664,953       652,536        675,610




     47
Interim financial information
Condensed consolidated statement of income

In millions of euros                                               First half 2011   First half 2010
Interest                                                                  4,507             4,347
Commission                                                                1,513             1,413
Other results                                                             1,283                672
Total income                                                              7,303             6,432
                                                                                                   
Staff costs                                                               2,596             2,362
Other administrative expenses                                             1,471             1,278
Depreciation and amortisation                                               290               266
Operating expenses                                                        4,357             3,906
Value adjustments                                                            618               569
Operating profit before taxation                                          2,328             1,957
Taxation                                                                     474               318
Net profit                                                                1,854             1,639
                                                                                                   
Of which attributable to Rabobank Nederland and local Rabobanks           1,340             1,176
Of which attributable to holders of Rabobank Member Certificates             157               151
Of which attributable to Capital Securities                                  267               240
Of which attributable to Trust Preferred Securities III to VI                 36                36
Of which attributable to non-controlling interests                            54                36
Net profit for the period                                                 1,854             1,639




    48
Interim Report 2011 Rabobank Group
Consolidated statement of comprehensive income

 In millions of euros                                               First half 2011   First half 2010
 Net profit                                                                1,854             1,639
 Arising in the period (after taxation):                                                            
 Foreign currency translation reserves                                                              
 Currency translation differences                                           (189)               461
 Revaluation reserve - Available-for-sale financial assets                                          
 Currency translation differences                                              13                   -
 Changes in associates                                                        (40)              147
 Fair value changes                                                         (226)                64
 Amortisation of reclassified assets                                           46                70
 Transferred to profit or loss                                                283               214
 Revaluation reserve - Associates                                                                   
 Fair value changes                                                           (16)              (14)
 Revaluation reserve - Cash flow hedges
 Fair value changes                                                              5               (4)
 Non-controlling interests
 Currency translation differences                                           (119)               346
 Changes in AFS revaluation reserve                                             3                (6)
 Total other comprehensive income                                           (240)            1,278
                                                                                                    
 Total comprehensive income                                                1,614             2,917
                                                                                                    
 Of which attributable to Rabobank Nederland and local Rabobanks           1,216             2,114
 Of which attributable to holders of Rabobank Member Certificates             157               151
 Of which attributable to Capital Securities                                  267               240
 Of which attributable to Trust Preferred Securities III to VI                  36               36
 Of which attributable to non-controlling interests                           (62)              376
 Total comprehensive income                                                1,614             2,917




     49
Interim financial information
Condensed consolidated statement of changes in equity

                                                                Equity of Rabobank     Rabobank             Capital            Non-
                                                                Nederland and local     Member       Securities and      controlling
In millions of euros                                                    Rabobanks     Certificates              TPS        interests               Total
At 1 January 2010                                                          21,963         6,315             6,182             3,423             37,883
Total comprehensive income                                                  2,114            151              276                  376           2,917
Attributable to Rabobank Member Certificates, Trust Preferred
  Securities III to VI (TPS) and Capital Securities                              -         (151)            (276)                     -           (427)
Other                                                                        (283)            43              155                  (64)           (149)
At 30 June 2010                                                            23,794         6,358             6,337             3,735             40,224
                                                                                                                                                        
At 1 January 2011                                                          24,749         6,583             6,306             3,119             40,757
Total comprehensive income                                                  1,216            157              303                  (62)          1,614
Attributable to Rabobank Member Certificates, Trust Preferred
  Securities III to VI (TPS) and Capital Securities                               -        (157)            (303)                     -          (460)
Issue of Capital Securities                                                                    -            1,437                     -          1,437
Other                                                                        (358)            (7)             (74)            (396)               (835)
At 30 June 2011                                                            25,607         6,576             7,669             2,661             42,513




Condensed consolidated statement of cash flows
In millions of euros                                                                                             First half 2011          First half 2010
Operating profit before taxation                                                                                        2,328                    1,957
                                                                                                                                                        
Non-cash items through operating profit before taxation                                                                    102                      625
Net change in operating assets                                                                                           (802)                (37,252)
Net change in liabilities relating to operating activities                                                             13,493                   56,426
Other                                                                                                                  (2,702)                  (2,760)
Net cash flow from operating activities                                                                                12,419                   18,996
                                                                                                                                                        
Net cash flow from investing activities                                                                                  (779)                (27,850)
Net cash flow from financing activities                                                                                    977                   1,645
Net change in cash and cash equivalents                                                                                12,617                   (7,209)
                                                                                                                                                        
Cash and cash equivalents at 1 January                                                                                 13,471                   16,565
Cash and cash equivalents at 30 June                                                                                   26,088                    9,356




    50
Interim Report 2011 Rabobank Group
Notes to the interim
financial information


                                             General
                                             The consolidated interim financial information of Rabobank Group has been prepared in
                                             accordance with International Financial Reporting Standards (IFRS) as adopted by the
                                             European Union, and is presented in conformity with IAS 34 Interim Financial Reporting.
                                             Unless otherwise stated, all amounts are in millions of euros.
                                               For the publication of its interim financial information, Rabobank Group has opted for
                                             the alternative of presenting condensed versions of its consolidated statement of financial
                                             position, its consolidated statement of income, its consolidated statement of equity and its
                                             consolidated statement of cash flows.
                                               Insofar as other insights implied the need for reclassifications, the comparative figures
                                             have been restated.

                                             Accounting policies
                                             Taking due account of the new and amended IFRSs, the significant accounting policies used
                                             in preparing the consolidated 2010 financial statements and the present interim financial
                                             information have been summarised below. The condensed presentation of the primary
                                             financial statements may cause certain terms in the accounting policies set out below to be
                                             inconsistent with the primary statements.

                                             New and amended IFRSs
                                             In 2011, Rabobank applied Interpretation IFRIC 19, amended Interpretation IFRIC 14, as well as
                                             amended Standards IAS 24 and IAS 32. The bank also applied the improvements made to the
                                             IFRSs in 2010.
                                                IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments is effective for financial years
                                             beginning on or after 1 January 2011. IFRIC 19 provides guidance for the accounting by
                                             a debtor of the equity instruments it issues to a creditor to extinguish all or part of a financial
                                             liability after the terms of the liability have been renegotiated. This Interpretation does not
                                             apply to Rabobank.
                                                The amendment to IFRIC 14 Prepayments of a Minimum Funding Requirement is effective for
                                             financial years beginning on or after 1 January 2011. The amendment removes an unintended
                                             consequence when an entity is subject to minimum funding requirements and makes an early
                                             payment of contributions to cover such requirements. Under certain circumstances, the entity
                                             would be required to recognise an expense. Where there is a minimum funding requirement
                                             for a defined benefit plan, the amendments to IFRIC 14 require that such prepayment, as well
                                             as any other prepayment, be treated as a pension asset. This amendment to IFRIC 14 does not
                                             affect earnings or equity.
                                                The amendment to IAS 24 Related Party Disclosures is effective for financial years beginning
                                             on or after 1 January 2011. The amendment aims to clarify the definition of a related party
                                             while removing certain internal inconsistencies. Furthermore, government-controlled entities
                                             are somewhat relieved from their obligations in terms of the volume of their related party
                                             transactions disclosure. The amendment to IAS 24 does not affect disclosures.
                                                The amendment to IAS 32 Financial Instruments: Presentation is effective for financial years
                                             beginning on or after 1 February 2011. It clarifies how certain rights must be accounted for
                                             when the instruments are issued in a different currency from the issuer’s functional currency.




   51
Notes to the interim financial information
                                     If they are given pro rata to the issuer’s existing shareholders for a fixed amount in cash, they
                                     must be classified as equity instruments, even if their exercise price is in a different currency
                                     from the issuer’s functional currency. This Interpretation does not apply to Rabobank.
                                        Of the new Standards that have been issued by the IAS Board but are not yet effective,
                                     IFRS 9 Financial Instruments is the most important to Rabobank. The impact of IFRS 9 is still
                                     being studied.

                                     Changes in accounting policies and presentation
                                     The disclosure below was also presented in the consolidated financial statements for 2010.
                                     Compared with the 2009 consolidated financial statements, the treatment of impairments of
                                     ‘Loans to customers’ previously classified as ‘Available-for-sale financial assets’ has changed. In
                                     previous years, where these assets were found to be impaired, the remaining revaluation reserve
                                     in equity was transferred to profit or loss, with the assets being remeasured at the present value
                                     of the expected future cash flows, at the effective interest rate at the inception of the contract.
                                        Given an agenda decision the International Financial Reporting Interpretations Committee
                                     made in 2010, it was decided to base the remeasurement on the present value of future cash
                                     flows at the effective interest rate at the time of reclassification.
                                        As a result, Rabobank treats financial guarantee contracts concluded separately and contracts
                                     incorporated in structured products in the same manner when calculating impairment of the
                                     assets insured, with the carrying amounts of guarantee contracts concluded separately, on
                                     initial recognition, being equal to the present value of the estimated future cash flows from the
                                     contract. Recognition has been applied retroactively for consistency reasons. The impact on
                                     equity at 1 January 2009 is -24, at 31 December 2009 -215, and on the results for 2009 -80.
                                        The gain or loss is recognised in ‘Net income from other financial assets at fair value through
                                     profit or loss’.
                                        The treatment of impairments of reclassified loans as ‘Loans to customers’ previously
                                     classified as ‘Available-for-sale financial assets’ had the following impact on the figures for 2010.
                                     At 31 December 2010, the item ‘Loans to customers’ is 484 lower. The negative effect on profit
                                     for the year for 2010 was 29. Deferred tax assets at 31 December 2010 were adjusted upwards
                                     by 203. The impact on equity at 31 December 2010 was -281.
                                        The impact of the adjustments relating to financial guarantee contracts referred to above on
                                     the 2010 figures is negligible. The amounts have already been included in the figures.
                                        The treatment of impairments of reclassified loans as ‘Loans to customers’ previously
                                     classified as ‘Available-for-sale financial assets’ had the following impact on the comparative
                                     figures. The item ‘Loans to customers’ was 82 lower at 1 January 2009 and 513 lower at 31
                                     December 2009. For 2009, interest income was 29 higher. ‘Net income from other financial
                                     assets’ was 269 lower. Operating profit before tax was 240 lower.
                                        The impact of the adjustments relating to financial guarantee contracts referred to above on
                                     the comparative figures is as follows. The item ‘Other assets’ was 41 higher at 1 January 2009
                                     and 114 higher at 31 December 2009. For 2009, both ‘Net income from other financial assets’
                                     and ‘Operating profit before tax’ were 73 higher.
                                        Combined, the impact of these adjustments on the comparative figures is as follows. The
                                     item ‘Loans to customers’ was 426,201 at 1 January 2009, instead of 426,283. At 31 December
                                     2009, they were 433,357 and 433,870 respectively. At 1 January 2009, the item ‘Other assets’
                                     was 10,596 instead of 10,555. At 31 December 2009, they were 8,835 and 8,721 respectively.
                                     Net profit for the year for 2009 was adjusted downward from 2,288 to 2,208. At 1 January 2009,
                                     the deferred tax asset was changed from 1,619 to 1,636. At 31 December 2009, these amounts
                                     were 1,174 and 1,358 respectively. At 31 December 2009, equity was adjusted downward from
                                     22,178 to 21,963. The amounts have already been included in the restated comparative figures.
                                        The amounts at 30 June 2010 have been restated as a result of the changes in accounting
                                     policies and presentation referred to above. The item ‘Loans to customers’ was 454,224 at
                                     30 June 2010, instead of 454,773. At 30 June 2010, the item ‘Other assets’ was 11,829 instead of
                                     11,715. Net profit for the first half of 2010 was adjusted downward from 1,661 to 1,639. Deferred
                                     tax assets at 30 June 2010 were adjusted from 1,220 to 1,418. Equity was adjusted from 40,461 to
                                     40,224. The amounts have already been included in the restated comparative figures.




   52
Interim Report 2011 Rabobank Group
                                             Judgments and estimates
                                             The preparation of the interim financial statements requires management to make estimates
                                             and assumptions that affect the amounts reported for assets and liabilities, the reporting of
                                             contingent assets and liabilities at the date of the interim financial statements, as well as
                                             the amounts reported for income and expenses during the reporting period. The situations
                                             that are assessed based on available financial data and information mainly concern the
                                             determination of the provision for doubtful debts, the fair value of assets and liabilities and
                                             impairments. Although management based their estimates on the most careful assessment of
                                             the current circumstances and activities, the actual results might deviate from these estimates.

                                             Group interim financial statements
                                             Subsidiaries
                                             Subsidiaries and other entities (including special purpose entities over which Rabobank
                                             exercises control, directly or indirectly) are consolidated. The assets, liabilities and results of
                                             these entities are consolidated in full.
                                                Subsidiaries are consolidated from the date on which Rabobank obtains control, and cease
                                             to be consolidated on the date that this control ends. All intra-group transactions, balances
                                             and unrealised gains and losses on transactions between Rabobank Group entities are
                                             eliminated for consolidation purposes.

                                             Internal liability (cross-guarantee system)
                                             In accordance with the Financial Supervision Act (Wet op het financieel toezicht), various legal
                                             entities belonging to the Rabobank Group are internally liable under an intragroup mutual
                                             keep well system. Under this system the participating entities are bound, in the event of a lack
                                             of funds of a participating entity to satisfy its creditors, to provide the funds necessary to allow
                                             such deficient participant to satisfy its creditors.

                                             The participating entities are:
                                             - The local member banks of Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A.
                                             - Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A. (Rabobank Nederland), Amsterdam
                                             - Rabohypotheekbank N.V., Amsterdam
                                             - Raiffeisenhypotheekbank N.V., Amsterdam
                                             - Schretlen & Co N.V., Amsterdam
                                             - De Lage Landen International B.V., Eindhoven
                                             - De Lage Landen Financiering B.V., Eindhoven
                                             - De Lage Landen Trade Finance B.V., Eindhoven
                                             - De Lage Landen Financial Services B.V., Eindhoven

                                             Joint ventures
                                             The interests of Rabobank in entities where control is shared are consolidated proportionally.
                                             With this method, Rabobank includes its share of the income and expenses, assets and
                                             liabilities, and cash flows of the various joint ventures in the relevant items of its interim
                                             financial statements.

                                             Investments in associates
                                             Investments in associates are recognised in accordance with the equity method. With this
                                             method, Rabobank’s share of the profits and losses of an associate – subject to Rabobank’s
                                             accounting policies – (after the acquisition) is recognised in profit or loss, and its share of the
                                             changes in reserves after the acquisition is recognised in reserves. The cumulative changes
                                             after acquisition are adjusted to the cost of the investment.
                                                Associates are entities over which Rabobank has significant influence and in which it usually
                                             holds between 20% and 50% of the voting rights but over which it does not exercise control.
                                             Unrealised gains on transactions between Rabobank and its associates are eliminated in
                                             proportion to the size of Rabobank’s interest in the associates. Unrealised losses are also
                                             eliminated unless the transaction indicates that an impairment loss should be recognised on
                                             the asset transferred.




   53
Notes to the interim financial information
                                     Investments by Rabobank in associates include the goodwill acquired. If Rabobank’s share in
                                     the losses of an associate equals or exceeds its interest in the associate, Rabobank will not
                                     recognise any more losses of the associate unless Rabobank has given undertakings or made
                                     payments on behalf of this associate.

                                     Derivative financial instruments and hedging
                                     General
                                     Derivative financial instruments generally comprise foreign exchange contracts, currency and
                                     interest rate futures, forward rate agreements, currency and interest rate swaps, and currency
                                     and interest rate options (written as well as acquired). Derivative financial instruments might
                                     be traded on an exchange or as over-the-counter (OTC) instruments between Rabobank and a
                                     client. All derivative financial instruments are recognised at fair value. The fair value is
                                     determined using listed market prices, prices offered by traders, cash flow discounting models
                                     and option valuation models based on current market prices and contracted prices for the
                                     underlying instruments, as well as the time value of money, yield curves and the volatility of
                                     the underlying assets and liabilities. All derivative financial instruments are included under
                                     assets if their fair value is positive and under liabilities if their fair value is negative.
                                        Derivative financial instruments that are embedded in other financial instruments are treated
                                     separately if their risks and characteristics are not closely related to those of the underlying
                                     derivative contract and this contract is not classified as fair value through profit or loss.

                                     Instruments not used for hedging
                                     Realised and unrealised gains and losses on derivative financial instruments classified by
                                     Rabobank as held for trading are recognised under ‘Trading results’.

                                     Hedging instruments
                                     Rabobank also uses derivative financial instruments as part of statement of financial position
                                     control to manage its interest rate risks, credit risks and foreign currency risks. Rabobank makes
                                     use of the possibilities provided by the EU through the carve-out in IAS 39. The carve-out
                                     facilitates the application of fair value portfolio hedge accounting to certain positions. Buckets
                                     are used to measure effectiveness.
                                        On the date of concluding a derivative contract, Rabobank can designate certain derivative
                                     financial instruments as (1) a hedge of the fair value of an asset or liability in the statement of
                                     financial position (fair value hedge), as (2) a hedge of future cash flows attributable to an asset
                                     or liability in the statement of financial position, an expected transaction or a non-current
                                     liability (cash flow hedge), or as (3) a hedge of a net investment in a foreign entity (net
                                     investment hedge). Hedge accounting can be applied for derivative financial instruments
                                     designated in this manner if certain criteria are met.
                                     These criteria include the following:
                                     - Formal documentation of the hedging instrument, the hedged item, the objective of the
                                        hedge, the hedging strategy and the hedge relationship before applying hedge accounting.
                                     - The hedge is expected to be very effective (in a range of 80% to 125%) in offsetting changes
                                        in the hedged item’s fair value or cash flows attributable to the hedged risks during the
                                        entire reporting period.
                                     - The hedge is continuously very effective from inception onwards.
                                     Changes in the fair value of derivative financial instruments that are designated as fair value
                                     hedges and are effective in relation to the hedged risks are recognised in profit or loss,
                                     together with the corresponding changes in the fair value of the assets or liabilities hedged
                                     against the risks in question.
                                        If the hedge no longer meets the criteria for hedge accounting (according to the fair value
                                     hedge model), any adjustment to the carrying amount of a hedged interest-bearing financial
                                     instrument is amortised through profit or loss until the end of the hedged period.
                                        Any adjustment to the carrying amount of a hedged equity instrument is recognised as
                                     equity until disposal of the equity instrument.
                                        Changes in the fair value of derivative financial instruments that are designated and qualify
                                     as cash flow hedges and that are highly effective in relation to the hedged risks are recognised
                                     in the hedging reserve included under ‘Equity’. The non-effective part of the changes in the fair
                                     values of the derivative financial instruments is recognised in profit or loss.



   54
Interim Report 2011 Rabobank Group
                                             If the forecast transaction or the non-current liability results in the recognition of a non-
                                             financial asset or a non-financial liability, any deferred gain or loss included in equity is restated
                                             to the initial carrying amount (cost) of the asset or the liability. In all other cases, deferred
                                             amounts included in equity are taken to the statement of income and are classified as income
                                             or expenses in the periods in which the hedged non-current liability or the forecast transaction
                                             had an effect on profit or loss.
                                                Certain derivative contracts, although they are economic hedges in relation to the managed risk
                                             positions taken by Rabobank, do not qualify for hedge accounting under the specific IFRS rules.
                                             These contracts are therefore treated as derivative financial instruments held for trading.

                                             Trade liabilities and other liabilities at fair value through profit or loss
                                             Trade liabilities
                                             Trade liabilities are mainly negative fair values of derivative financial instruments and delivery
                                             obligations arising on short selling of securities. Securities are sold short to realise gains from
                                             short-term price fluctuations. The securities needed to settle the short selling are acquired
                                             through securities leasing or sale and securities repurchase agreements. Securities sold short
                                             are recognised at fair value at the reporting date.

                                             Other liabilities at fair value through profit or loss
                                             Other liabilities at fair value through profit or loss include certain financial liabilities that
                                             Rabobank does not intend to sell, but which it accounted for at fair value. Changes in the fair
                                             value of these financial liabilities are recognised in profit or loss for the period in which they
                                             arise.

                                             Trading financial assets
                                             Trading financial assets are acquired to realise gains from short-term fluctuations in the prices
                                             or margins of traders, or form part of a portfolio that regularly generates short-term gains.
                                                These assets are stated at fair value based on quoted bid prices. Any realised and unrealised
                                             gains and losses are included under ‘Trading income’. Interest earned on trading financial assets
                                             is recognised as interest income.
                                                Dividends received on trading financial assets are recognised as ‘Trading income’.
                                                All purchases and sales of trading financial assets that have to be delivered within a period
                                             prescribed by regulations or market convention are recognised at the transaction date.

                                             Other financial assets and liabilities at fair value through profit or loss
                                             Rabobank has opted to classify financial instruments not acquired or entered into for realising
                                             gains from short-term fluctuations in traders’ prices or margins at fair value through profit or
                                             loss. These financial assets, including venture capital, are carried at fair value.
                                             Management designates financial assets and liabilities to this category upon initial recognition
                                             if any or all of the following criteria are met:
                                             - Such a designation eliminates or substantially reduces any inconsistent treatment that would
                                                otherwise have arisen upon valuation of the assets or liabilities or recognition of profits or
                                                losses on the basis of different accounting policies.
                                             - The assets and liabilities belong to a group of financial assets and/or financial liabilities that
                                                are managed and assessed on the basis of their fair value in accordance with a documented
                                                risk management or investment strategy.
                                             - The financial instrument contains an embedded derivative financial instrument, unless the
                                                embedded derivative financial instrument does not significantly affect the cash flows or if it
                                                is evident, after limited analysis or no analysis at all, that separate recognition is not required.
                                             Interest earned on assets with this classification is recognised as interest income and interest
                                             due on liabilities with this classification is recognised as interest expense. Any other realised
                                             and unrealised gains and losses on revaluation of these financial instruments at fair value are
                                             included under ‘Income from other financial assets and liabilities’.

                                             Day 1 profit
                                             Discrepancies between the transaction price and fair value may arise if valuation techniques
                                             are applied at the time of the transaction. Such a discrepancy is referred to as day 1 profit.
                                             Rabobank recognises this profit directly under ‘Trading income’ provided that the valuation



   55
Notes to the interim financial information
                                     technique is based on observable data inputs (from active markets). If unobservable data
                                     inputs were used, the day 1 profit is amortised over the term of the transaction and recognised
                                     under ‘Other liabilities’. Profit is subsequently accounted for if the financial instrument in
                                     question is sold or if the data input has subsequently become observable.

                                     Available-for-sale financial assets
                                     Management determines the classification of financial assets on the date of acquisition,
                                     depending on the purpose for which the investments are acquired.
                                       Financial assets that are intended to be held indefinitely and that could be sold for liquidity
                                     purposes or in response to changes in interest rates, exchange rates or share prices are
                                     classified as available for sale. Available-for-sale financial assets are initially recognised at fair
                                     value, including transaction costs, based on quoted bid prices or values derived from cash flow
                                     models. The fair values of unlisted equity instruments are estimated based on appropriate
                                     price/earnings ratios, adjusted to reflect the specific circumstances of the respective issuers.
                                     Any unrealised gains and losses from changes in the fair value of available-for-sale financial
                                     assets are recognised in equity unless they relate to amortised interest. If such financial assets
                                     are disposed of, the adjustments to fair value are recognised in profit or loss.
                                       At each reporting date, management assesses whether there are objective indications of
                                     impairment of available-for-sale assets. Equity instruments are impaired if their cost
                                     permanently exceeds their recoverable amount, i.e. their fair value is permanently or
                                     significantly lower than their cost. The recoverable amount of investments in unlisted equity
                                     instruments is determined using approved valuation methods, whereas the recoverable
                                     amount of listed financial assets is determined on the basis of market value. Impairment of
                                     equity instruments is never subsequently reversed through profit or loss.
                                       Debt instruments are impaired if there are objective indications that the market value has
                                     decreased to such a degree that no reasonable assumptions can be made that the value will
                                     recover to carrying amount in the foreseeable future.
                                       In the event of impairment, the cumulative loss is determined by the difference between cost
                                     and current fair value, less any previously recognised impairment transferred from the
                                     revaluation reserve in equity to profit or loss. If the impairment of a debt instrument diminishes
                                     in a subsequent period and the diminution can be objectively attributed to an event that
                                     occurred after the impairment, the impairment is reversed through profit or loss. All purchases
                                     and sales made in accordance with standard market conventions for available-for-sale financial
                                     assets are recognised at the transaction date. All other purchases and sales are recognised at
                                     the settlement date.

                                     Held-to-maturity financial assets
                                     Financial assets with fixed terms and cash flows are classified as held-to-maturity financial
                                     assets, provided management intends to keep them for their full terms and is in a position to
                                     do so. Management determines the appropriate classification for its investments on their
                                     acquisition dates.
                                       Held-to-maturity financial assets are initially recognised at fair value and subsequently
                                     carried at amortised cost based on the effective interest method, net of provisions for
                                     impairment losses.
                                       Interest earned on held-to-maturity financial assets is recognised as interest income. All
                                     purchases and sales made in accordance with standard market conventions for held-to-
                                     maturity financial assets are recognised at the date of settlement.

                                     Repurchase agreements and reverse repurchase agreements
                                     Financial assets that are sold subject to related sale and repurchase agreements are included in
                                     the interim financial statements under ‘Trading financial assets’ or ‘Available-for-sale financial
                                     assets’. The liability to the counterparty is included under ‘Due to other banks’ or ‘Due to
                                     customers’, depending on the application.
                                       Financial assets acquired under reverse sale and reverse repurchase agreements are recognised
                                     as ‘Due from other banks’, or ‘Loans to customers’, depending on the application. The difference
                                     between the selling price and repurchasing price is recognised as interest income or interest
                                     expense over the term of the agreement, based on the effective interest method.




   56
Interim Report 2011 Rabobank Group
                                             Securitisations and other derecognition constructions
                                             Rabobank securitises, sells and carries various financial assets. Those assets are sometimes sold
                                             to special purpose entities (‘SPEs’), which then issue securities to investors. Rabobank has the
                                             option of retaining an interest in sold securitised financial assets in the form of subordinated
                                             interest-only strips, subordinated securities, spread accounts, servicing rights, guarantees, put
                                             options and call options, and other constructions.
                                             A financial asset (or a portion of it) is derecognised if:
                                             - The rights to the cash flows from the asset expire.
                                             - The rights to the cash flows from the asset and a substantial portion of the risks and benefits
                                                of ownership of the asset are transferred.
                                             - A commitment to transfer the cash flows from the asset is presumed and a substantial
                                                portion of the risks and benefits are transferred.
                                             - Not all the economic risks and benefits are retained or transferred; however, control over
                                                the asset is transferred.
                                             If Rabobank retains control over the asset but does not retain a substantial portion of the
                                             rights and benefits, the asset is recognised in proportion to the continuing involvement of
                                             Rabobank. A related liability is also recognised to the extent of Rabobank’s continuing
                                             involvement. The recognition of changes in the value of the liability corresponds to the
                                             recognition of changes in the value of the asset.
                                                If a transaction does not meet the above conditions for derecognition, it is recognised as
                                             a loan for which security has been provided.
                                                To the extent that the transfer of a financial asset does not qualify for derecognition, the transfer
                                             does not result in Rabobank’s contractual rights being separately recognised as derivative financial
                                             instruments if recognition of these instruments and the transferred asset, or the liability arising on
                                             the transfer, were to result in double recognition of the same rights or obligations.
                                                Gains and losses on securitisations and sale transactions depend partly on the previous
                                             carrying amounts of the financial assets transferred. These are allocated to the sold and
                                             retained interests based on the relative fair values of these interests at the date of sale.
                                             Any gains and losses are recognised through profit or loss at the time of transfer.
                                                The fair value of the sold and retained interests is based on quoted market prices or
                                             calculated as the present value of the future expected cash flows, using pricing models
                                             that take into account various assumptions such as credit losses, discount rates, yield curves,
                                             payment frequency and other factors.
                                                Rabobank decides whether the SPE should be included in the consolidated interim financial
                                             statements.
                                                For this purpose, it performs an assessment of the SPE by taking a number of factors into
                                             consideration, including the activities, decision-making powers and the allocation of the
                                             benefits and risks associated with the activities of the SPE.

                                             Cash and cash equivalents
                                             Cash equivalents are highly liquid short-term investments held to meet current obligations in
                                             cash, rather than for investments or other purposes. Such obligations have outstanding terms
                                             of less than 90 days at inception. Cash equivalents are readily convertible to known amounts of
                                             cash and subject to an insignificant risk of changes in value.

                                             Netting of financial assets and liabilities
                                             Financial assets and liabilities are set off and the net amount is transferred to the statement
                                             of financial position if a legal right to set off the recognised amounts exists and it is intended
                                             to settle the expected future cash flows on a net basis, or to realise the asset and settle the
                                             liability simultaneously. This mainly concerns netting off of current account balances.

                                             Foreign currencies
                                             Foreign entities
                                             Items included in the interim financial statements of each entity in Rabobank Group are
                                             carried in the currency that best reflects the economic reality of the underlying events
                                             and circumstances that are relevant for the entity (‘the functional currency’).
                                                The consolidated interim financial statements are presented in euros, which is the parent
                                             company’s functional currency.



   57
Notes to the interim financial information
                                     Gains, losses and cash flows of foreign entities are translated into the presentation currency of
                                     Rabobank at the exchange rates ruling at the transaction dates, which is approximately equal
                                     to the average exchange rates. For purposes of the statement of financial position, they are
                                     translated at closing rates. Translation differences arising on the net investments in foreign
                                     entities and on loans and other currency instruments designated as hedges of these investments
                                     are recognised in equity. If a foreign entity is sold, any such translation differences are recognised
                                     in profit or loss as part of the gain or loss on the sale.
                                        Goodwill and fair value adjustments arising on the acquisition of a foreign entity are
                                     recognised as assets and liabilities of the foreign entity and are translated at the closing rate.

                                     Transactions in foreign currencies
                                     Transactions in foreign currencies are translated into the functional currency at the exchange
                                     rates ruling at the transaction dates. Translation differences arising on the settlement of such
                                     transactions or on the translation of monetary assets and liabilities denominated in foreign
                                     currencies are recognised in profit or loss, unless they are recognised in equity as qualifying
                                     net investment hedges.
                                        Translation differences on debt securities and other monetary financial assets carried at fair
                                     value are included under foreign exchange gains and losses. Translation differences on non-
                                     monetary items such as equity instruments held for trading are recognised as part of the fair
                                     value gains or losses. Translation differences on available-for-sale non-monetary items are
                                     included in the revaluation reserve reported under ‘Equity’.

                                     Interest
                                     Interest income and expense for all interest-bearing instruments is recognised in profit or loss
                                     on an accrual basis, with the effective interest method being applied. Interest income includes
                                     coupons relating to fixed-interest financial assets and trading financial assets, as well as the
                                     cumulative premiums and discounts on government treasury securities and other cash
                                     equivalent instruments. If any loans suffer impairment losses, they are written down to their
                                     recoverable amounts and the interest income recognised henceforth is based on the original
                                     discount rate for calculating the present value of the future cash flows used to determine the
                                     recoverable amounts.

                                     Commission
                                     Income from asset management activities consists mainly of unit trust, fund management
                                     commission and administration. Income from asset management and insurance brokerage is
                                     recognised as earned once the services have been provided.
                                       Commission is generally recognised on an accrual basis. Commission received for
                                     negotiating a transaction, or taking part in the negotiations, on behalf of third parties, for
                                     example the acquisition of a portfolio of loans, shares or other securities, or the sale or
                                     purchase of companies, is recognised at completion of the underlying transactions.

                                     Loans to customers and Due from other banks
                                     Loans to customers and Due from other banks are non-derivative financial instruments with
                                     fixed or defined payments, not listed on an active market, apart from such assets that Rabobank
                                     classifies as trading, at fair value on initial recognition with changes recognised through profit
                                     or loss, or as available for sale. Loans to customers and receivables are initially recognised at
                                     fair value, including transaction costs, and subsequently carried at amortised cost, including
                                     transaction costs.
                                        Loans are subject to either individual or collective impairment analyses. A value adjustment,
                                     a provision for expected losses on loans, is recognised if there is objective evidence that
                                     Rabobank will not be able to collect all amounts due under the original terms of the contract.
                                     The size of the provision is the difference between the carrying amount and the recoverable
                                     amount, which is the present value of the expected cash flows, including amounts recoverable
                                     under guarantees and sureties, discounted at the original effective rate of interest of the loans.




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Interim Report 2011 Rabobank Group
                                             The provision for loans includes losses if there is objective evidence that losses are attributable
                                             to some portions of the loan portfolio at the reporting date.
                                             Examples of objective evidence for value adjustments are:
                                             - Significant financial problems on the part of the borrower.
                                             - Default in making interest and/or redemption payments on the part of the borrower.
                                             - Loan renegotiations.
                                             - Possibility of bankruptcy of or financial reorganisation at the borrower.
                                             - Changes in borrowers’ payment status.
                                             - Changes in economic circumstances that could cause the borrower to default.
                                             The losses are estimated based on the historical pattern of losses for each separate portion, the
                                             credit ratings of the borrowers, and taking into account the actual economic conditions under
                                             which the borrowers conduct their activities. The carrying amount of the loans is reduced
                                             through the use of a provision account and the loss is taken to the statement of income.
                                             Write-downs of provisions for expected losses on loans are made as soon as the enforcement
                                             process is completed, the security provided has been realised, when virtually no other means of
                                             recovery are available and in the event of a formal cancellation of a debt. Where extraordinary
                                             circumstances arise, a provision for expected losses on loans may be written down at a portfolio
                                             level, up to the amount deemed uncollectible. Any amounts subsequently collected are included
                                             under the item ‘Value adjustments’ in the statement of income.
                                                In its role as relationship bank, Rabobank will try to prevent the risk of default of payment on
                                             the part of the customer through adequate credit management, regular consultations with the
                                             customer and taking timely action. If despite these efforts a customer defaults on payment,
                                             Rabobank will attempt to restructure the loan instead of realising the collateral as long as it
                                             sees prospects for continuity. This may result in payments being rescheduled, new terms
                                             attached to the loan agreed or additional collateral obtained. As soon as the prospects for
                                             continuity have recovered, the loan is no longer considered impaired (not fully collectible).
                                             Management continually assesses these renegotiated loans to ensure that all criteria are
                                             satisfied with a view to expected future cash flows.
                                                At each reporting date, management assesses whether there is objective evidence that
                                             reclassified loans previously recognised as available-for-sale assets have been impaired.

                                             Intangible assets
                                             Goodwill
                                             Goodwill is the amount by which the acquisition price paid for a subsidiary or associate exceeds
                                             the fair value on the acquisition date of Rabobank’s share of the net assets and the contingent
                                             liabilities of the entity acquired. Upon each acquisition, the other minority interests are
                                             recognised at fair value or at the proportion of the identifiable assets and liabilities of the
                                             acquired entity. Impairment tests are performed annually or – if indications so dictate – more
                                             frequently to determine whether impairment has occurred.

                                             Software development costs
                                             Costs related to the development or maintenance of software are recognised as an expense at
                                             the time they are incurred. Costs directly incurred in connection with identifiable and unique
                                             software products over which Rabobank has control and that will probably provide economic
                                             benefits exceeding the costs for longer than a year are recognised as intangible assets. Direct
                                             costs include the employee expenses of the software development team, financing and an
                                             appropriate portion of the relevant overhead.
                                               Expenditures that improve the performance of software compared with their original
                                             specifications are added to the original cost of the software. Software development costs are
                                             recognised as assets and amortised on a straight-line basis over a period not exceeding five years.

                                             Other intangible assets
                                             Other intangible assets are mainly those identified upon business combinations. They are
                                             amortised over their terms.
                                               Each year, Rabobank performs an impairment test based on expected future cash flows. An
                                             impairment loss is recognised if the expected future profits do not justify the carrying amount
                                             of the asset.




   59
Notes to the interim financial information
                                     Impairment losses on goodwill
                                     Each year at year-end goodwill is tested for impairment by comparing the recoverable amount
                                     of cash flow generating units with their carrying amount.
                                       The higher of value in use on the one hand and fair value less selling costs on the other
                                     determines the recoverable amount. The definition of cash flow generating units depend on
                                     the type of company acquired.
                                       The recoverable amount of a cash flow generating unit is arrived at by determining the present
                                     value of the expected future cash flows of the cash flow generating unit in question at the
                                     interest rate before tax. The major assumptions used in the cash flow model depend on the input
                                     data which reflect different financial and economic variables, such as the risk-free interest rate in
                                     a country and a premium reflecting the inherent risk of the entity concerned. The variables are
                                     determined subject to review by management. Impairments of goodwill are included in ‘Other
                                     income’ in the statement of income. Impairments of goodwill recognised in the interim financial
                                     statements may not be reversed in the subsequent annual financial statements.

                                     Impairment losses on other intangible assets
                                     At each reporting date, Rabobank assesses whether there are indications of impairment of other
                                     intangible assets. If such indications exist, impairment testing is carried out to determine whether
                                     the carrying amount of the other intangible assets is fully recoverable. An impairment loss is
                                     recognised if the carrying amount exceeds the recoverable amount. Goodwill and software
                                     under development are tested for impairment each year at the reporting date or more frequently
                                     if indications of impairment exist. Impairment losses and reversed impairments of other
                                     intangible assets are included in ‘Other administrative expenses’ in the statement of income.

                                     Property and equipment
                                     Equipment (for own use) is recognised at historical cost net of accumulated depreciation and
                                     impairments if applicable.
                                       Property (for own use) represents mainly offices and is also recognised at cost less
                                     accumulated depreciation and impairments if applicable.

                                     Straight-line deprecation is applied to these assets in accordance with the schedule below.
                                     Each asset is depreciated to its residual value over its estimated useful life:
                                     - Land                                Not depreciated
                                     - Buildings                           25 - 40 years
                                     - Equipment, including
                                       - Computer equipment                1 - 5 years
                                       - Other equipment and vehicles 3 - 8 years

                                     Each year, Rabobank assesses whether there are indications of impairment of property and
                                     equipment. If the carrying amount of an asset exceeds its estimated recoverable amount, the
                                     carrying amount is written down immediately to the recoverable amount. Impairment losses
                                     and reversed impairments of property and equipment are included in ‘Other administrative
                                     expenses’ in the statement of income. Gains and losses on the disposal of items of property
                                     and equipment are determined in proportion to their carrying amounts and taken into
                                     account when determining the operating result. Repair and maintenance work is charged to
                                     profit or loss at the time the relevant costs are incurred. Expenditures on extending or
                                     increasing the benefits from land and buildings compared with their original benefits are
                                     capitalised and subsequently depreciated.

                                     Investment properties
                                     Investment properties, mainly office buildings, are held for their long-term rental income and
                                     are not used by Rabobank or its subsidiaries. Investment properties are recognised as long-
                                     term investments and included in the statement of financial position at cost, net of
                                     accumulated depreciation and impairment.
                                       Investment properties are depreciated over a term of 40 years.




   60
Interim Report 2011 Rabobank Group
                                             Work in progress
                                             Work in progress is included in ‘Other assets’. Work in progress relates to commercial real estate
                                             projects as well as sold and unsold housing projects under construction or planned and is
                                             carried at cost plus allocated interest, net of provisions as necessary. Instalments invoiced to
                                             buyers and customers are deducted from work in progress. If the balance for a project is
                                             negative (the amount of the invoiced instalments exceeds the capitalised costs), the balance of
                                             that project is recognised as ‘Other liabilities’.
                                                Gains and losses are recognised based on the percentage of completion method given the
                                             continuous transfer of ownership involved. In the course of the construction work, Rabobank
                                             transfers the control and the material risks and benefits of the ownership of the work in
                                             progress in its current state to the buyer.

                                             Leasing
                                             Rabobank as lessee
                                             Leases relating to property and equipment under which virtually all risks and benefits of ownership
                                             are transferred to Rabobank are classified as finance leases. Finance leases are capitalised at the
                                             inception of the lease at the fair value of the leased assets or at the present value of the minimum
                                             lease payments if the present value is lower. Lease payments are apportioned between the lease
                                             liability and the finance charges, so as to achieve a constant rate of interest on the remaining
                                             balance of the liability. The corresponding lease liabilities are included under ‘Other loans’, after
                                             deduction of finance charges. The interest components of the finance charges are recognised in
                                             profit or loss over the term of the lease. An item of property and equipment acquired under a
                                             lease agreement is depreciated over the useful life of the asset or, if shorter, the term of the lease.
                                                Leases under which a considerable portion of the risks and benefits of ownership of the
                                             assets is retained by the lessor are classified as operating leases. Operating lease payments
                                             (less any discounts by the lessor) are charged to profit or loss on a straight-line basis over the
                                             term of the lease.

                                             Rabobank as lessor
                                             Finance leases
                                             If assets are leased under a finance lease, the present value of the lease payments is recognised
                                             as a receivable under ‘Due from other banks’ or ‘Loans to customers’. The difference between
                                             the gross receivable and the present value of the receivable is recognised as unearned finance
                                             income. Lease income is recognised as interest income over the term of the lease using the net
                                             investment method, which results in a constant rate of return on the investment.
                                             Operating leases
                                             Assets leased under operating leases are included in the statement of financial position
                                             under ‘Property and equipment’. The assets are depreciated over their expected useful lives in
                                             line with those of comparable items of property and equipment. Rental income (less discounts
                                             granted to lessees) is recognised under ‘Other income’ on a straight-line basis over the term of
                                             the lease.

                                             Provisions
                                             Provisions are recognised if Rabobank has a present obligation (legal or constructive) as a result of
                                             a past event, if it is probable that an outflow of resources will be required to settle the obligation
                                             and if a reliable estimate can be made of the amount of the obligation. If Rabobank expects a
                                             provision to be reimbursed, for example under an insurance contract, the reimbursement is
                                             recognised as a separate asset but only if the reimbursement is virtually certain. The provisions
                                             are carried at the discounted value of the expected future cash flows.

                                             Restructuring
                                             Restructuring provisions comprise payments under redundancy schemes and other costs directly
                                             attributable to restructuring programmes. The costs are recognised in the period in which a legal
                                             or constructive obligation arises for Rabobank and a detailed redundancy scheme is in place. No
                                             provisions are formed in advance for costs relating to continuing operations of Rabobank.




   61
Notes to the interim financial information
                                     Tax and legal issues
                                     The provisions for tax and legal issues is based on the best possible estimates available at
                                     the reporting date, taking into account legal and tax advice. The timing of the cash outflow
                                     of these provisions is uncertain because the outcome of the disputes and the time involved
                                     are unpredictable.

                                     Other provisions
                                     This item includes a provision for onerous contracts, credit guarantees and obligations under
                                     the terms of the deposit guarantee system.

                                     Employee benefits
                                     Rabobank has various pension plans in place based on the local conditions and practices of
                                     the countries in which it operates. In general, the plans are financed by payments to insurance
                                     companies or trustee administered funds. The payments are calculated actuarially at regular
                                     intervals. A defined benefit plan is one that incorporates a promise to pay an amount of
                                     pension benefit, which is usually based on several factors such as age, number of years in
                                     service and remuneration. A defined contribution plan is one under which Rabobank pays
                                     fixed contributions to a separate entity (a pension fund) and acquires no legal or constructive
                                     obligation if the fund has insufficient assets to pay all the benefits to employee/members of
                                     the plan in respect of service in current and past periods.

                                     Pension obligations
                                     The defined benefit liability is the present value of the defined benefit obligation at the reporting
                                     date, including adjustments for actuarial gains and losses and past service costs not yet
                                     recognised, reduced by the fair value of the plan assets. The defined benefit obligation is
                                     calculated by independent actuaries each year using the projected unit credit method. The
                                     present value of the defined benefit obligation is calculated by discounting the estimated
                                     future cash outflows at rates of interest on prime corporate bonds with terms approximating
                                     those of the related obligations. Most of the pension plans are career average pension plans
                                     and the net costs after deduction of employees’ contributions are included under ‘Staff costs’.
                                     Actuarial gains or losses from adjustments to actual developments and modified actuarial
                                     assumptions are recognised using the corridor method. Insofar as unrecognised cumulative
                                     actuarial gains or losses exceed 10% of the higher of the present value of the gross obligation
                                     under the defined benefit plan and the fair value of the fund, such excess is taken to profit or
                                     loss the next financial year, spread over two years.

                                     Defined contribution plans
                                     Under defined contribution plans, Rabobank pays contributions to publicly or privately
                                     managed insured pension plans on a compulsory, contractual or voluntary basis. Once the
                                     contributions have been made, Rabobank has no further payment obligations. The regular
                                     contributions are net period costs for the year in which they are due and are included on this
                                     basis under ‘Staff costs’.

                                     Other post-employment obligations
                                     Some Rabobank units provide other post-employment benefits. To become eligible for such
                                     benefits, the usual requirement is that the employee remains in service until retirement and
                                     has been with the company a minimum number of years. The expected costs of these benefits
                                     are accrued over the years of service, based on a system similar to that for defined benefit
                                     plans. The obligations are valued each year by independent actuaries.

                                     Tax
                                     Current tax receivables and payables are set off if there is a legally enforceable right to set off
                                     such items and if simultaneous treatment or settlement is intended. Deferred tax assets and
                                     liabilities are set off if there is a legally enforceable right to set off such items and if they relate
                                     to the same tax authority and arise from the same tax group.
                                        Provisions are formed in full for deferred tax liabilities, using the liability method, arising
                                     from temporary differences at the reporting date between the tax bases of assets and liabilities
                                     and their carrying amounts for financial reporting purposes.



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Interim Report 2011 Rabobank Group
                                             The main temporary differences relate to the depreciation of property and equipment, the
                                             revaluation of certain financial assets and liabilities, including derivative financial instruments,
                                             provisions for pensions and other post-employment benefits, provisions for losses on loans and
                                             other impairment and tax losses, and, in connection with business combinations, the fair values
                                             of the net assets acquired and their tax bases. Deferred income tax assets and liabilities are
                                             measured at the tax rates that have been enacted or substantively enacted at the reporting date.
                                               Deferred tax assets are recognised to the extent that it is probable that future taxable profits
                                             will be available, against which the temporary differences can be utilised.
                                               Provisions are formed in respect of taxable temporary differences associated with
                                             investments in subsidiaries, associates and interests in joint ventures, unless the timing of the
                                             reversal of the temporary differences can be controlled and it is probable that the temporary
                                             differences will not reverse in the foreseeable future.
                                               Taxes on profit are calculated in accordance with the tax legislation of the relevant
                                             jurisdiction and recognised in the period in which the profit is realised. The tax effects of the
                                             carry-forward of unused tax losses are recognised as an asset if it is probable that future
                                             taxable profits will be available against which the losses can be utilised.
                                               Deferred tax assets or deferred tax liabilities are included for the revaluation of available-for-
                                             sale financial assets and cash flow hedges that are directly taken to equity. Upon realisation,
                                             they are recognised in profit or loss together with the respective deferred gain or loss.

                                             Due to other banks, due to customers and debt securities in issue
                                             These borrowings are initially recognised at fair value, i.e. the issue price less directly
                                             attributable and non-recurring transaction costs. Loans are subsequently included at
                                             amortised cost. Any difference between the net proceeds and the redemption amount is
                                             recognised over the term of the loan, using the effective interest method.
                                               If Rabobank repurchases one of its own debt instruments, it is derecognised, with the
                                             difference between the carrying amount of a liability and the consideration paid being
                                             recognised as income or expense.

                                             Rabobank Member Certificates
                                             These are the certificates for shares in the capital of Rabobank Ledencertificaten N.V.,
                                             Rabobank Ledencertificaten II N.V. and Rabobank Ledencertificaten III N.V. respectively issued
                                             in 2000, 2001, 2002 and 2005. On 30 December 2008, the merger between RLC (as the
                                             recipient company), RLC I and RLC II became effective (‘the Merger’). As a consequence of the
                                             Merger, RLC (known after the Merger as: Rabobank Ledencertificaten N.V.) acquired all the
                                             capital of RLC I and RLC II by universal title and RLC I and RLC II ceased to exist.
                                               Since the proceeds of the issue are available to Rabobank on a perpetual and highly
                                             subordinated basis (also subordinate to the Trust Preferred Securities), and since, in principle,
                                             no distribution is made if the consolidated statement of income of Rabobank shows a loss for
                                             any financial year, the issue proceeds, insofar as they have been lent on to Rabobank
                                             Nederland, are recognised under ‘Equity’ in proportion to the number of certificates held by
                                             members and employees. As a result, distributions are accounted for in the profit
                                             appropriation.

                                             Trust Preferred Securities and Capital Securities
                                             Trust Preferred Securities, which pay a non-discretionary dividend and are redeemable on a
                                             specific date or at the option of the holder, are classified as financial liabilities and included
                                             under ‘Subordinated debt’. The dividends on these preferred securities are recognised in profit
                                             or loss as interest expense based on amortised cost using the effective interest method.
                                               The remaining Trust Preferred Securities and Capital Securities are recognised as ‘Equity’, as
                                             there is no formal obligation to repay the principal or to pay the dividend.

                                             Financial guarantees
                                             Financial guarantees are measured at fair value.




   63
Notes to the interim financial information
                                     Segment information
                                     A segment is a distinguishable component of Rabobank that engages in providing products or
                                     services and is subject to risks and returns that are different from those of other segments. The
                                     business segments Rabobank uses in its reporting are defined from a management viewpoint.
                                     This means they are the segments that are reviewed as part of Rabobank’s strategic
                                     management and for the purpose of making business decisions, and have different risks and
                                     returns. Rabobank’s primary segment reporting format is by business segment; the secondary
                                     format is by geographical segment.

                                     Statement of cash flows
                                     Cash and cash equivalents comprises cash resources, money market deposits and deposits at
                                     central banks. The statement of cash flows is prepared in accordance with the indirect method
                                     of calculation and provides details of the source of the cash and cash equivalents that became
                                     available during the year as well as their application during the year. Operating profit before
                                     taxation in the net cash flow from operating activities is adjusted for items in the statement of
                                     income and changes in items in the statement of financial position which do not actually
                                     generate cash flows during the year.
                                        The cash flows from operating, investing and financing activities are stated separately.
                                     Changes in loans and receivables and interbank deposits are accounted for under cash flows
                                     from operating activities. Investing activities relate to acquisitions and disposals and repayments
                                     on financial investments, as well as the acquisition and disposal of subsidiaries and property and
                                     equipment. The proceeds from the issue of and payments on Rabobank Member Certificates, Trust
                                     Preferred Securities, Capital Securities, Senior Contingent Notes, Rabo Extra Member Notes and
                                     subordinated loans qualify as financing activities. Changes on account of currency translation
                                     differences are eliminated, as are the consolidation effects of acquisitions of associates.

                                     Capital Securities issue in first half of 2011
                                     Rabobank Nederland issued USD 2 billion in Capital Securities in the first six months of 2011.
                                     The Capital Securities are perpetual and first callable on 26 July 2016. The Capital Securities are
                                     recognised within ‘Equity’, as there is no formal obligation to repay the principal or pay dividend.
                                     They satisfy the present rules, known as the CRD 2 requirements, that apply to hybrid capital.
                                     Among other things, they prescribe that the securities may no longer include a step-up and that
                                     they should share in losses once a certain trigger is hit, in which case the principal is permanently
                                     written down. Write-down will be on a pro rata basis with other equity components.
                                     For Rabobank Group, the trigger will be an equity capital ratio of 8%. Once it is hit, losses will also
                                     be attributed to this series of Capital Securities on a pro rata basis. The distribution is 8.375% per
                                     year and is made payable every six months in arrears as of the issue date (26 January 2011), for
                                     the first time on 26 July 2011. With effect from 26 July 2016, provided the Capital Securities have
                                     not been repaid early, the distribution will be reset without a step-up for a five-year period, based
                                     on the US Treasury Benchmark Rate plus a 6.425% mark-up.

                                     Planned exchange of Rabobank Member Certificates
                                     In October 2011, the Rabobank Member Certificates are expected to be exchanged. Holders of
                                     an existing Rabobank Member Certificate will receive a new Rabobank Member Certificate as
                                     well as a payment in cash equaling the difference between the existing Rabobank Member
                                     Certificate’s net asset value and the new Rabobank Member Certificate’s nominal value, which
                                     difference is expected to be EUR 1.20 per certificate. The new Rabobank Member Certificates
                                     will be depository receipts of participation rights directly issued by Rabobank Nederland.




   64
Interim Report 2011 Rabobank Group
                                             Disclosures required under IAS 34.15, 15B and 16A
                                             Besides the issue of Capital Securities referred to above and the planned exchange of
                                             Rabo Member Certificates, no significant events and transactions occurred in the first six
                                             months of 2011.

                                             The disclosures required under IAS 34.16A are presented below.
                                             - The same accounting policies and methods of computation are followed in the interim
                                               financial statements as compared with the 2010 consolidated annual financial statement.
                                               Changed accounting policies and methods are set out in the ‘New and amended IFRSs’ Section.
                                             - There are no other items than those set out in this report that affect assets, liabilities, equity,
                                               net income or cash flows that are unusual because of their nature, size or incidence.
                                             - No changes in estimates occurred during this interim period.
                                             - Rabobank made various issues, repurchases and repayments of bonds, but they are part
                                               of Rabobank’s ordinary operations.
                                             - Rabobank’s interim operations are not of a seasonal or cyclical nature.
                                             - Rabobank made payments to owners of equity instruments as set out in the condensed
                                               consolidated statement of changes in equity.
                                             - The ‘Business segments’ Section has been prepared in conformity with the requirements
                                               of IFRS 8.
                                             - There were no events after the reporting date that provide further information on the actual
                                               situation at the reporting date.
                                             - There were no changes in the composition of the entity during the interim period, including
                                               business combinations, obtaining or losing control of subsidiaries and long-term
                                               investments, restructurings and discontinued operations.

                                             Notes to the primary financial statements
                                             Condensed consolidated statement of income - Other results
                                             Higher income from Global Financial Markets and Professional Products, an improvement in
                                             trading income at Sarasin, and an increase in residual value gains at De Lage Landen were
                                             factors in the rise in other income. In combination with favourable developments in the yield
                                             curve, with rates rising and the curve steepening, this resulted in a 91% increase in other
                                             income to 1,283 (672) million in the first half of 2011.

                                             Consolidated statement of comprehensive income
                                             The fall in total other comprehensive income can largely be attributed to currency translation
                                             differences in non-controlling interests and the foreign currency translation reserve, which were
                                             chiefly caused by the lower US dollar exchange rate.

                                             Condensed consolidated statement of changes in equity
                                             Other non-controlling interests are 396 lower, especially mainly due to the deconsolidation of
                                             structured finance deals with third-party investors in the United States.

                                             Condensed consolidated statement of cash flows
                                             For the first half of 2011, the non-cash items recognised in operating profit before taxation are
                                             lower than those for the first half of 2010, because of the increase in net income from financial
                                             assets and liabilities at fair value through profit or loss and income from associates.

                                             In the first half of 2011, the net change in operating assets was less negative than that for the
                                             first half of 2010, chiefly on account of the decrease in derivative financial instruments during
                                             the first half of 2011 and the increase in derivative financial instruments in the first half of 2010.
                                             The same effect can be seen in the net change in liabilities relating to operating activities.

                                             The net cash flow from investing activities in the first half of 2011 was lower than that for the
                                             first half of 2010, as a major cash outflow had taken place in the first half of 2010 with respect
                                             to the purchase of government bonds in anticipation of more stringent liquidity requirements.




   65
Notes to the interim financial information
                                     Business segments
                                     The business segments Rabobank uses in its reporting are defined from a management viewpoint.
                                     This means they are the segments that are reviewed as part of Rabobank’s strategic management
                                     and for the purpose of making business decisions and have different risks and returns.
                                        Rabobank distinguishes six major business segments: domestic retail banking, wholesale and
                                     international retail banking, asset management, leasing, real estate and other segments.
                                        The domestic retail banking segment mainly comprises the operations carried out by the
                                     local Rabobanks and Obvion. The wholesale and international retail banking segment –
                                     Rabobank International – provides support to Rabobank Group in achieving market leadership
                                     in the Netherlands as an all-finance service provider. Internationally, it concentrates on the
                                     food and agri sector. Rabobank International undertakes regional corporate banking
                                     operations while globally operates entities, such as Global Financial Markets, Structured
                                     Finance, Leveraged Finance, Renewable Energy & Infrastructure Finance, Direct Banking, Trade
                                     & Commodity Finance and Rabo Private Equity. It carries on its retail banking operations under
                                     the Rabobank label, with the exceptions of ACCBank and Bank BGZ, The asset management
                                     segment mainly comprises the operations of Robeco, Schretlen & Co and Sarasin. The leasing
                                     segment – De Lage Landen – is responsible for the lease operations, offering a wide range of
                                     lease, trade finance and consumer finance products in its Dutch home market. Across the
                                     globe, it supports sales of manufacturers, vendors and distributors, offering them its asset
                                     finance products. In Europe, De Lage Landen operates the car lease company Athlon Car Lease.
                                     The real estate segment – Rabo Real Estate Group – carries out Rabobank’s real estate
                                     operations. Its core business is in developing residential and commercial real estate as well as
                                     providing finance and asset management services. Rabo Vastgoedgroep operates under the
                                     labels Bouwfonds Ontwikkeling, MAB Development, FGH Bank and Bouwfonds REIM. The other
                                     segments of Rabobank comprise a variety of segments, none of which requires separate
                                     reporting. They chiefly reflect the figures for the associates (notably Eureko) and head office
                                     operations. There are no clients representing over 10% of Rabobank’s total revenues.
                                        Inter-segment transactions are conducted in accordance with standard commercial terms
                                     and market conditions. The dividend distribution of 241 to the local Rabobanks has been
                                     recognised within ‘Other results’ in the domestic retail banking segment. No material income
                                     or expense items other than from operating activities arise between business segments.
                                     The assets and liabilities of a segment comprise operating assets and operating liabilities, i.e.
                                     a substantial part of the statement of financial position, but are exclusive of items such as
                                     taxation. The accounting policies used for segment reporting are the same as those described
                                     in the section on the significant accounting policies used in preparing the consolidated interim
                                     financial statements.




   66
Interim Report 2011 Rabobank Group
                                                                  Wholesale                                                   Consolidation
                                                               banking and                                                         effects/
                                                  Domestic     international         Asset                              Other        hedge
 In millions of euros                        retail banking   retail banking   management    Leasing   Real estate   segments   accounting       Total
 For the half-year ended 30 June 2011                                                                                                                
 Interest                                           2,576            1,399             82      370           141         (61)             -     4,507
 Commission                                           673              311            499        36           20         (25)           (1)     1,513
 Other results                                        262              382            110      239           149         474         (333)      1,283
 Total income                                       3,511            2,092            691      645           310         388         (334)      7,303
 Segment expense                                    1,954            1,066            506      392           152         964         (677)      4,357
 Value adjustments                                    218              301               -       54           45            -             -      618
 Operating profit before taxation                   1,339              725            185      199           113        (576)          343      2,328
 Taxation                                             281              219             50        45           26        (231)           84       474
 Net profit                                         1,058              506            135      154            87        (345)          259      1,854
                                                                                                                                                     
 Total assets                                    371,795          450,236          26,074    29,541      26,899       92,485     (332,077)    664,953
 Total liabilities                               348,712          446,634          23,085    26,477      24,882       75,798     (323,148)    622,440




                                                                  Wholesale                                                   Consolidation
                                                               banking and                                                         effects/
                                                  Domestic     international         Asset                              Other        hedge
 In millions of euros                        retail banking   retail banking   management    Leasing   Real estate   segments   accounting       Total
 For the half-year ended 30 June 2010                                                                                                                
 Interest                                           2,483            1,416             80      318           123         (73)             -     4,347
 Commission                                           685              301            424        41           14         (53)            1      1,413
 Other results                                         86              272            (31)     211           116         768         (750)       672
 Total income                                       3,254            1,989            473      570           253         642         (749)      6,432
 Segment expense                                    1,897              887            455      317           154         791         (595)      3,906
 Value adjustments                                    177              252               -     120            20            -             -      569
 Operating profit before taxation                   1,180              850             18      133            79        (149)        (154)      1,957
 Taxation                                             248              122             17        32              -       (69)         (32)       318
 Net profit                                           932              728              1      101            79         (80)        (122)      1,639
                                                                                                                                                     
 Total assets                                    349,806          456,766          24,744    30,623      26,685       70,901     (283,915)    675,610
 Total liabilities                               327,511          491,544          22,098    27,753      25,489       57,297     (316,306)    635,386




     67
Notes to the interim financial information
Statements
Review report



                                     To the Executive Board and Supervisory Board of Rabobank Nederland

                                     Introduction
                                     We have reviewed the condensed consolidated interim financial information as set out in the
                                     interim report 2011 on pages 46 to 67, of Coöperatieve Centrale Raiffeisen-Boerenleenbank
                                     B.A. (Rabobank Nederland), Amsterdam, which comprises the condensed consolidated
                                     statement of financial position as at 30 June 2011, the condensed consolidated statement of
                                     income, consolidated statement of comprehensive income, condensed consolidated statement
                                     of changes in equity and condensed consolidated statement of cash flows for the six month
                                     period then ended and the notes to the interim financial information. The Executive Board of
                                     Rabobank Nederland is responsible for the preparation and presentation of this condensed
                                     consolidated interim financial information in accordance with IAS 34, ‘Interim Financial
                                     Reporting’ as adopted by the European Union. Our responsibility is to express a conclusion on
                                     this condensed consolidated interim financial information based on our review.

                                     Scope
                                     We conducted our review in accordance with Dutch law including the Dutch standard 2410,
                                     ‘Review of Interim Financial Information Performed by the Independent Auditor of the Entity’.
                                     A review of interim financial information consists of making inquiries, primarily of persons
                                     responsible for financial and accounting matters, and applying analytical and other review
                                     procedures. A review is substantially less in scope than an audit conducted in accordance with
                                     the Dutch auditing standards and consequently does not enable us to obtain assurance that
                                     we would become aware of all significant matters that might be identified in an audit.
                                     Accordingly, we do not express an audit opinion.

                                     Conclusion
                                     Based on our review, nothing has come to our attention that causes us to believe that the
                                     accompanying condensed consolidated interim financial information for the six months period
                                     ended 30 June 2011 is not prepared, in all material respects, in accordance with IAS 34, ‘Interim
                                     Financial Reporting’, as adopted by the European Union.

                                     Amsterdam, 22 August 2011

                                     Ernst & Young Accountants LLP




                                     /s/G.H.C. de Meris




   68
Interim Report 2011 Rabobank Group
Executive Board responsibility statement



              The Executive Board of Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A.
              (Rabobank Nederland) declares that, to the best of their knowledge:
              - the interim financial information gives a true and fair view of the assets, liabilities, financial
                position and results of operations of Rabobank Nederland and its consolidated entities;
              - the interim report gives a true and fair view of the situation at the balance sheet date, and of
                developments in activities of Rabobank Nederland and of its consolidated entities in the first
                half of the year, as well as a description of the principal risks and uncertainties for the
                remaining six months of 2011, in which, insofar as weighty interests do not oppose this,
                special attention is paid to the investments and to the circumstances on which the
                development of turnover and profitability depends.

              Piet Moerland, Chairman
              Bert Bruggink, CFO
              Berry Marttin, Member
              Sipko Schat, Member
              Piet van Schijndel, Member
              Gerlinde Silvis, Member

              Utrecht, 22 August 2011




   69
Statements
                                     Colophon



                                        Published by
                                     Rabobank Nederland Communications Departments


                                        Disclaimer
                                     This Interim Report is a translation of the Dutch Interim Report. In the event of any conflict in interpretation,
                                     the Dutch original takes precedence.


                                        Annual Reporting
                                     In 2011 Rabobank Group publishes the following annual reporting documents, both in English and in Dutch:
                                     - Annual Summary 2010 Rabobank Group - Jaarbericht 2010 Rabobank Groep
                                     - Annual Report 2010 Rabobank Group - Jaarverslag 2010 Rabobank Groep
                                     - Consolidated Financial Statements 2010 Rabobank Group - Geconsolideerde jaarrekening 2010 Rabobank Groep
                                     - Financial Statements 2010 Rabobank Nederland - Jaarrekening 2010 Rabobank Nederland
                                     - Interim Report 2011 Rabobank Group - Halfjaarverslag 2011 Rabobank Groep


                                     Rabobank Group’s annual reporting is available online on www.rabobank.com/annualreports and
                                     www.rabobank.com/jaarverslagen.
                                     The key figures are also available for the mobile phone on:




                                     http://m.keyfiguresrabobank.com                                                            http://m.kerngegevensrabobank.nl


                                        Materials used
                                     Rabobank Group uses environmentally-friendly materials when printing this document. Third parties downloading the PDF
                                     from the Internet and printing it are kindly requested to do the same.


                                        Contact
                                     jaarverslagen@rn.rabobank.nl
                                     Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A. (Rabobank Nederland)
                                     Croeselaan 18
                                     P.O. Box 17100
                                     3500 HG Utrecht
                                     The Netherlands
                                     +31 30 216 0000




   70
Interim Report 2011 Rabobank Group
Interim Report 2011 Rabobank Group
August 2011
www.rabobank.com/annualreports

								
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