Cooperative bank Rabobank booked net profit of €924m in the first half of 2016, a drop of 39% on the same period last year.

The decline is due to provisions taken to cover compensation for business customers with interest rate derivatives, higher regulatory taxes and the cost of the ongoing reorganisation, the Utrecht-based bank said.

However, underlying operating profit is up in all commercial business segments, the bank said in a statement.

Like ING and ABN Amro, Rabobank has benefited from the downturn in provisions needed to cover bad loans, which were down €208m on the first half of 2015.

Rabobank is currently in the middle of a reorganisation which will see 12,000 of its 47,000 jobs go. Almost 2,000 full time positions have been scrapped so far this year.

‘The digitisation of our services and the implementation of necessary improvements to efficiency… are proceeding at a rapid pace,’ said chief executive Wiebe Draijer. ‘The very large loss of jobs associated with this presents a huge challenge to both remaining and departing employees. We are doing our utmost to ensure that this process is effected with care and attention.’

So far staffing costs have been cut by 6%, the bank said.