August 22, 2013 / 10:32 AM / in 4 years

UPDATE 2-Dutch lender Rabobank tots up likely costs of Libor scandal

By Sara Webb

AMSTERDAM, Aug 22 (Reuters) - Rabobank, one of several banks named by the authorities in the international Libor interest rate rigging scandal, has made an unspecified provision in its first-half results for settling with regulators.

The Dutch cooperatively-owned bank expects certain regulatory agencies and authorities to conclude their investigations this year, it said in a statement on Thursday.

“Taking into account the uncertainties regarding the timing of (the) conclusion of these investigations, Rabobank has made an estimate of these settlement amounts,” it said.

“Rabobank does not disclose detailed information regarding such provisions as such disclosures could seriously prejudice its position,” it added.

Rabobank said the estimated Libor settlement was not included under “provisions” in its financial statement, but was recognised under “other liabilities”, which amounted to 11.88 billion euros at the end of June, up from 11.07 billion euros at the end of December, and 11.32 billion euros a year ago.

Earlier the bank reported a 14 percent drop in its first-half net profit to 1.1 billion euros ($1.47 billion), reflecting higher bad debts.

“The Dutch economy remained in recession and the prospects for recovery continue to be poor,” Piet Moerland, chief executive, said in a statement.

The bank, which reported a full-year net profit of 2.1 billion euros in 2012, has already announced sweeping job cuts, branch closures and reductions in remuneration packages to save about 1 billion euros in costs.

About 8,000 domestic retail banking jobs will go by 2016 - reducing the headcount in those operations by nearly a third to 20,000 from 28,000, while Rabobank said it will close about 300 out of the 800 or so existing branches of its member banks.

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