Rabobank parent group posts 39% drop in profits

Rabobank, the second-largest Dutch bank by assets, said first-half profit fell 39%, hurt by legal costs and restructuring expenses.

Net income dropped to €924m from €1.5bn a year earlier, the closely held bank said in a statement. The lender increased provisions by €514m to compensate clients whose interest-rate swaps backfired after the 2008 financial crisis.

Restructuring costs, partly tied to job cuts, jumped to €190m from €26m a year earlier.