3
Dutch banks
prepare for
bigger role
on worldwide
markets
Kaoo
5
The Netherlands plays a signifi
cant role in the international busi
ness world. It's not for nothing
that the Dutch are called the
Chinese of Europe. They can af-
ford to blow their trumpet, par-
ticularly as regards agribusi-
ness. Compared with other
Dutch banks, Rabobank is a rela-
tive newcomer on the interna
tional markets. Just nine years
ago Rabobank Nederland opened
its first office outside the Nether
lands, in New York. What posi-
tion do the other Dutch banks
occupy when it comes to world
wide activities? And what is the
objective of the banks and of
Rabobank? An inventory.
Just nine years after
the first foreign office
The Netherlands' largest banks
Issue 7/September 21, 1990
There's a lot going on at present in the
world of the just over sixty banks reg-
istered as independent operations in
the Netherlands. For years, there were only
five major national banks, alongside many
small ones: ABN-Bank, Amro-Bank, NMB,
Postbank and Rabobank. Besides these,
distributed locally, there are savings banks
which are mainly active in the retail market.
This year, Amro-Bank and ABN-Bank
merged, thus creating by farthe largest bank
in the Netherlands. One year earlier Post
bank - previously a state company - merged
with NMB. This resulted in NMB-Postbank.
This combination now follows Rabobank as
third in the top ten Dutch banks.
Nationally: three banks The game on
the Dutch market is now largely being
played by three banks. In Rabobank's most
important domestic markets - small and
medium-sized businesses, the private sav
ings and mortgage market - Rabobank is
still the market leader. The Amro/ABN-
Bank, with a balance sheet total amounting
to almost half that of the total of the major
Dutch banks, has only a relatively small
share of these market segments. Rabobank
has the largest market shares here. That cer-
tainly applies to the agricultural market, in
which Rabobank has a share of over 90
per cent. The new combination, however, is
strengthening its grip among large companies.
Competitor The other newly formed
bank, NMB-Postbank, is mainly a big player
in the Netherlands in the field of payment
transactions and handles almost half of
these. Among private individuals, Postbank
has had a strong grip on the savings, con-
sumer credit and mortgage markets for
years now and is therefore a formidable
competitor for Rabobank. NMB was formed
in the twenties for the purpose of granting
credit to small and medium-sized businesses.
Over the years, Rabobank has captured a
high percentage of this market and is now
bigger there than NMB.
Big in market segments ABN-Bank and
Amro-Bank mainly aim to develop worldwide
activities. The new combination has re
sulted in a bank which ranks among the 25
largest in the world. In Europe, this Dutch
mammoth takes sixth or seventh place. In
the Netherlands, Rabobank always came a
firm third in terms of its balance sheet total.
Now it comes second. But the merger of the
two largest banks does not mean that Rabo-
Objectives Rabobank's objectives on
the international market are very different
from those of the two banks. Wijffels: 'Our
ambition is not to become a globai gen-
eral bank. Our services abroad are aimed at
both our domestic customers and the agri-
business world. The new combination in-
tends to be able to supply all the banking
services to everyone worldwide. They are
very strong in that. As far as we're con-
cerned, our foreign operations are still an
addition to our domestic business. We
were and still are a bank oriented predomi-
nantly towards retail activities with certain
operations in the Wholesale sector.'
Plans Are Rabobank's plans changing
now that other large Dutch banks have
merged? Wijffels: 'We are going on with
the expansion of our foreign offices net-
work. It will grow to further maturity. In ad
dition, we will develop the possibilities for
improving our market reach by means of
The head office of NMB in Amsterdam.
bank will suddenly become a
small bank. Rabobank is still
bigger in a number of seg
ments in the domestic market.
Selective NMB-Postbank
aims to expand its activities
internationally on a selective
basis, lts attention is mainly
concentrated on growth coun-
tries outside Europe. Inside
Europe there are already to
many banks to allow further
growth to be achieved, so they
believe. The combination, par-
ticularly NMB, already has an
important position in the debt/equity trad
ing field. Over one-fifth of the combination's
balance sheet total is the result of the role
which the bank plays internationally.
Mainly countries abroad The new com
bination of Amro-Bank and ABN-Bank is ex-
pected to concentrate mainly on activities in
countries abroad. Herman Wijffels, Chair-
man of Rabobank Nederland's Executive
Board, made the following comment on this
when the merger plans were announced:
'The gap between what we can offer in that
field and what they will shortly be able to offer
together is increasing. That can give rise to the
question of whether certain options which we
have in our foreign developments will not
come under somewhat greater pressure. So
we will have to look at how to answer this.'
Year-end 1989
Balance
Employees
Offices
Sheet Total
(Dfl billions)
Netherlands Abroad
Netherlands Abroad
ABN 173.2
20,440 11,554
711 269
AMRO 179.7
21,543 2,175
762 106
ABN/AMRO 352.9
41,983 13,729
1,473 375
NMB
11,500 1,532
440 41
Postbank
11,192
2,605
NMB/Postbank 161.3
22,692 1,532
3,045 41
Rabobank 172.4
33,597 802
2,192 30
strategie partnerships, strategie alliances
with other parties.'
The banking landscape in the Nether
lands is changing. Larger banks aim above
all at strengthening their position interna
tionally. Rabobank will continue on the path
on which it has set out. Collaboration with
other European cooperative banks already
exists in the context of Unico. Rabobank has
also concluded a strategie alliance with the
Spanish bank Banco Popular Espahol. In
the Netherlands, a close cooperation has
been established with the Interpolis insur-
ance company and the Robeco Group. De
velopments are not standing still. In a few
years' time, the markets for the financial
services companies will undoubtedly look
different again.
The head office of Amro-Bank in Amsterdam.
