Rabobank set aside 1 billion euros in the first six months for loans that are unlikely to be repaid by companies that got into trouble due to the COVID-19 pandemic. As a result, the profit has largely evaporated, the bank reports Thursday.

As a result of the reservation, Rabobank has now set aside a total of EUR 1.442 billion for loans that may not be repaid. There was already about 400 million euros in this reserve.

Profit in the first half of the year was considerably lower than in the same period last year: 227 million euros in 2020, compared to 1.21 billion in 2019.

In addition to the reservation, Rabobank has also had to write down various assets, just as many other companies do today. The impairments of Rabobank include its own investment division and an interest in the American Mechanics Bank.

Sales in the first six months of this year amounted to 5.2 billion euros. That was 8 percent less than the 5.7 billion euros in the first half of 2019. A decline in activity is the main cause of the decline in turnover.