Rabobank’s net profits rose 82% last year to €4.28 billion, but costs were up because of higher expenditure on IT and personnel and further rises are likely this year, the cooperative bank said on Thursday.

The higher profit was partly driven by income from interest rates but “good business performance” also played a part, the bank said in a statement.

Total income increased by 31%. Expenses were 9% higher than in 2022 due to an increase in staff costs at the bank’s financial and economic crime unit, investments in IT infrastructure, and statutory pay rises.

“The upward trend in the overall cost level is expected to continue as ongoing efficiency measures only partly offset higher staff costs,” the bank said.

Almost all the Dutch banks have been reprimanded by the central bank for not having their checks on money laundering and financing terrorism in order. Rabobank has been given until the end of the year to get up to speed or face fines.

ING said last month it had booked net profit of almost €7.3 billion last year, double the 2022 total, as rising interest rates allowed it to earn more from savings and to borrow more cheaply.