Rabobank First-Half Profit Drops 39%, Hurt by Legal Charges
- Provisions for swaps compensation rise by 514 million euros
- Chairman Draijer says efficiency efforts proceeding rapidly
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Rabobank Groep, the second-largest Dutch bank by assets, said first-half profit fell 39 percent, hurt by legal costs and restructuring expenses.
Net income dropped to 924 million euros ($1 billion) from 1.5 billion euros a year earlier, the closely held bank said in a statement on Thursday. The lender increased provisions by 514 million euros to compensate clients whose interest-rate swaps backfired after the 2008 financial crisis. Restructuring costs, partly tied to job cuts, jumped to 190 million euros from 26 million euros a year earlier.