Rabobank ended 2025 with its second-highest profit on record, despite global geopolitical uncertainty leading the bank to set aside more funds for potential loan losses.
The bank added €764 million to its contingency reserve, up from €468 million the previous year. “You naturally consider what can happen in the world. It’s quite fragile right now,” said Chief Financial Officer Bas Brouwers. Rabobank has adjusted its models to include scenarios such as an escalation of the global trade war and the introduction of new trade barriers. For now, the bank says it has seen a few customers getting into financial difficulty.
Rabobank closed the year with nearly €5 billion in profit, following a record €5.2 billion in 2024. The bank benefited from continued growth in its loan portfolio and increased income from fees and commissions. However, it faced lower margins on savings accounts, partly due to earlier interest rate cuts by the European Central Bank.
Chief Executive Officer Stefaan Decraene, who recently began a second term, said the bank had shown resilience over the past year and had further strengthened its capital buffer. According to Decraene, Rabobank is now among the best-capitalised banks in Europe, creating financial room for growth. He plans to use this for expansion in the coming years, including through acquisitions. In November, the bank announced it would acquire Alfam, a personal loans provider owned by ABN AMRO.
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