Australia-New Zealand
Rabo Australia Group -
Integrated F&A focus pays off
4
Supplement to What's NewS January 1996
lt is just over a year since Rabobank acquired the Primary Industry Bank of Australia (PIBA).
This was the first time the bank had ever ventured into primary production outside the
Netherlands. How has the new merchant banking/rural lending combination fared over the
past 12 months? What's NewS finds out from CEO Cor Broekhuyse and his people
throughout the region
DARWIN
NORTH ROCKHAMPTON
SYDNEY
Rabobank's Australian and
New Zealand operation now
comprises two dedicated
divisions which work closely
together - Rabo Australia Ltd
(RAL), the merchant/corporate
arm, and PIBA, which finances
the top end of the agricultural
market in both countries.
'Known collectively as the
Rabo Australia Group (RAG),
this combination gives us a
very clear, integrated
agribusiness identity,'
Broekhuyse (photo) says. 'In
all of the bank's other
international operationsvthe
focus is on serving a numbers
of sectors. So you find their
portfolios are strongly F&A
oriented, but not exclusively.
They are looking for a 50/50
mix. Because of our very
distinct structure, we actually
have a greater F&A emphasis
in our business, even on the
corporate side. Fd say between
70 and 80 percent of what we
do here is food and agri-
related.'
KICK-START
If the numbers generated this
year by the operation down-
under are anything to go by,
this F&A focus is certainly
paying off. The Group will be
contributing between 17 and
18 percent net return on
investment to CBS's bottom
line. 'We knew there was a real
affinity between Rabobank
and PIBA,' says Broekhuyse,
'but it has proved even greater
than expected. Perhaps that's
why we have done so well. The
PIBA connection has helped us
build our corporate banking
business because by buying a
bank like this one, you have a
presence in the market which
gives the merchant side a real
kick-start.'
LOCAL ADVANTAGES
PIBA has remained firmly
entrenched in its core rural
market. But the kick-start
appears to be working both
ways. Over the past year, three
new branches have been
launched in Australia and one
more is slated for next year. In
New Zealand, two more
offices have also been added to
the network and another is
planned. According to
Broekhuyse, PIBA bears some
striking similarities to the
domestic Rabobank
organization. 'Maybe that's
why we see so much affinity,'
he says. 'PIBA is strong in
agriculture. And we also have
a very interesting mortgage
loan book for retail clients.
Both of those aspects are
CLIENT PANEL -
AUSTRALIAN STYLE
In what appears to be a first for
an Australian financial
institution, the bank has set up
a food and agribusiness
advisory board. Chaired by
Henk Visser of our executive
board, it comprises top
managers (and even a former
government minister) from
every major F&A sector in
Australia.The board will meet
twice a year. lts main objective
is to advise the Rabo Australia
group on strategie planning.
RABO AUSTRALIA GROUP
Precies een jaar geleden heeft de Rabobank de Primary Industry Bank of Australia (PIBA) overgenomen. Met deze acquisitie heeft de Rabobank
haar corporate activiteiten in de aantrekkelijke food en agribusiness van Australië en Nieuw Zeeland fors uitgebouwd. Onder de naam Rabo
Australia Group (RAG) bedienen PIBA en Rabo Australia ieder hun eigen doelgroepen. PIBA richt zich op de primaire landbouw en Rabo Australia op
de corporate markt. De gecombineerde aanpak van de hele markt heeft geresulteerd in sterke groei. Dat geldt zowel voor de inkomsten als voor de
bezetting. Cor Broekhuyse geeft een overzicht van dit voor RAG bijzondere eerste jaar.
