General Meeting a
great event
Rabo
band
The Annual General Meeting of the Rabobank Group in the
Utrecht Trade Fair Halls is an event that attracts special atten-
tion in the Netherlands. That attention comes not oniy from the
local Rabobanks, but also from the radio, television and press.
With some 3,000 participants it is probably the largest meeting
annually held in the Netherlands.
Issue 2/September 23, 1988
quently took a turn for the better. Since
short-term funds grew strongly, aggregate
borrowed funds were in accordance with
our projections. Total funds entrusted were
up to DFL. 114,100,000,000. The
Rabobank Group's total assets amounted
to DFL. 155,200,000,000 as at June 30,
1988. This increase is partly attributable
to the higher US dollar exchange rate.
Compared to the first half of 1987,
the period under review saw a pro-
nounced increase in net interest income.
Partly due to the steady growth in lend-
ing, the volume of our interest-earning op-
erations considerably increased. Interest
margins were still under pressure, but
less so than in the same period of the
preceding year.
Commission income grew especially
strongly. Commission from insurance and
travel operations, in particular, saw sub-
stantial gains which more than compensat-
ed for the relatively static developments in
income from stock broking operations.
Commission from payment transactions
also improved.
As a result of good price gains in secu-
rities and foreign exchange arbitrage oper
ations, other income, also rose apprecia-
bly. Total income increased by 7.5%.
Operating expenses were up by 3.6% in
the period under review. Limited expansion
Key figures
30-6-1988
131-12-1987
Member banks
912
922
- branches
2,266
2,293
- agencies
1,060
1,071
Employees
32,720
32,646
Members
795,000
805,000
Savings accounts
8,560,000
8,745,000
Payment accounts
3,725,000
3,670,000
Current accounts
505,000
500,000
Loans
1,155,000
1,135,000
in personnel played an important role in
this, a stringent control being kept over
such developments. The numbers em-
ployed by the Group went up by 74 to
32,720 as at June 30, 1988.
Profit before provisions and taxes for
the first six months of 1988 was 16%
higher and amounted to DFL. 814 million.
Bad debts continued to decrease.
Nevertheless, in line with the expanded
loan portfolio, the addition to the provi-
sion for general contingencies has been
increased. The tax burden has risen fur-
ther. Net profit was up by 15% to reach
DFL. 374 million. Based on current
prospects, we are expecting greater pres
sure on interest margins in the latter half
of 1988 than was the case in the first
half. The second half-year result will con-
sequently show a smaller increase than
in the first six months. For the year as a
whole, the increase in net income will be
approximately equal to the growth in total
assets.
Local Rabobanks
The local Rabobanks are cooperative as.
sociations with both companies and pri
vate individuals as members. Every year,
these local Rabobanks organise a
General Meeting to which all the mem
bers are invited. There, the Supervisory
Board, the Board of Directors and the
Management account for the conduct of
policy and give information about the de
velopments to be expected in the near fu
ture. By participating in the discussion at
this meeting the members can influence
the policy of the bank and they also elect
the members of the Supervisory Board
and the Board of Directors.
Rabobank Nederland is a coopera
tive association formed by the
910 affiliated local Rabobanks.
The General Meeting of the cooperative
Rabobank Nederland is attended by the
general managers and delegates from the
management boards of the local Ra
bobanks. Preliminary advice on all the
items to be dealt with at the meeting is re-
quested from the Central Delegate
Assembly, the most important advisory
Every year, there is a special surprise
gift from a different region of the
Netherlands for everyone attending the
General Meeting. This year it was an or-
ange-glazed cake from Friesland which
was presented by ladies in traditional
costume.
body of the Rabobank
Group.
During the meeting,
the Chairman of the
Board of Directors,
Otto Baron van Ver-
schuer, and the Chair
man of the Executive
Board, Herman Wijf-
fels, accounted for the
conduct of policy in
1987 and gave an in-
sight into the develop
ments to be expected
for 1988 and subse-
quent years. In particu
lar, the economie unifi-
cation of the European
market is engaging the attention of busi-
nessmen, and certainly of the banks as
well. The Rabobank Group has therefore
taken steps to increase the pace of the in-
ternationalization process still further.
The employees of the Rabobank
Group were also mentioned. The quality
of our people and of the resources with
which they work are all decisive for the
achievement of our business objectives in
the present competitive and turbulent
market conditions,' said Mr. Wijffels in
his speech. 'Continuity and renewal are
only possible if we have or can get the
right people with the right skills at the
right place to do this. Our employees are
The General Managers of the foreign branches attended the General
Meeting
more strategically important than ever
and deserve corresponding attention
from management'.
Delegate Assemblies
In the Netherlands there are 43 policy
groups, each consisting of about 20
Rabobanks, which are called Regional
Delegate Assemblies. Consultation on
policy matters takes place in these
Assemblies, delegates from which meet
at the Central Delegate Assembly four
times a year. The items discussed there
are dealt with at the Annual General
Meeting.