Rabobank also reports skyrocketing profits thanks to higher interest rates
Rabobank recorded a profit of 2.5 billion euros in the first six months of 2023, largely thanks to the higher interest rates. That is almost double compared to the same period last year and one of Rabobank’s best results ever, NOS reports.
Like the other big banks in the Netherlands, Rabobank benefits from the difference between interest rates on loans, which have risen quickly since the European Central Bank started hiking rates to combat inflation, and the interest rates on savings, which are rising more slowly. Rabobank earned 1.4 billion more in interest than a year ago.
On the downside, Rabobank had to set aside a lot of money in its buffer for loans that may not be repaid. The bank pushed 339 million euros into its bad loans buffer, compared to 42 million euros a year earlier.
Rabobank expects that customers will run into trouble because of the high inflation, the increased interest on loans, and because entrepreneurs still have to repay taxes deferred during the coronavirus crisis. But for the time being, these factors have had a limited impact on customers, Rabobank said.
On Wednesday, ABN Amro also reported that its profits nearly doubled to 1.4 billion euros, primarily due to the interest rates. ING’s profits more than doubled over the past six months, rising to 3.7 billion euros.
