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PIBA - UNIQUE IN THE
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WHAT'S NewS Issue 1 January 1996
13
appointment as state manager
of corporate banking 'was a
response to the growing
number of opportunities for
the type of tailor-made
products we have to offer the
market here.' The Auckland
branch will open in early
1996. 'This is an exciting move
for us,' says Chris Abbenhuis,
'because there's a great
potential market for corporate
finance in New Zealand.'
EXPERT STAFF
RAL is not only pursuing a
clear policy of expansion. It is
also sticking to its philosophy
of recruiting specialist staff.
'It's one of our strengths,
Abbenhuis beleives. 'If you
bring in people with
agribusiness backgrounds, then
F.l.t.r. Rik van Slingelandt, Chris Abbenhuis, Andrew Davison and
lan Charlton.
you also bring in their
networks of contacts and
individual expertise in various
commodities. Our clients feel
comfortable dealing with
people who understand their
business and that is what we
want.' Among the specialist
staff recruited this year are
Bernie Webb who joined the
bank as senior manager trade
finance, and Tony O'Connor
to head up agri-project
finance. 'I've used my time this
year to build contacts,' says
O'Connor, 'and to market our
products to prospects. We're
now looking at four major
transaction which we hope to
complete by early this year.'
NON-FOOD FOCUS
But F&A is not RAL's sole
focus. 'We're also looking very
carefully at non-food areas, in
line with Rabobank
international strategy,'
Abbenhuis says. 'One of our
most recent deals was for the
Ramsey Health Care Group, a
national organization, which
established us as a player in this
sector. We're taking it slowly
and feeling our way. But I think
you can expect some significant
results in the non-food areas by
this time next year.'
The Primary Industry Bank of Australia, or the rural division,
as it is known more prosaically in the RAG network, has
carved itself a very strong niche. As the only specialist rural
lender in Australia and New Zealand, it occupies a prominent
position in F&A. But it is a position which is constantly under
threat. Managing director Mike Walter explains why and
what PIBA is doing about it.
'We are truly a specialist bank
in more ways than one,' he
says. 'We offer not only long
term finance to our customers
in both countries. But we do it
in partnership with them.
They are committed to
growing their business over
the long-term and increasing
their asset base, usually by
purchasing more productive
land and/or off-farm
investment property. We see
our role as helping them
achieve that growth.'
FIERCE COMPETITION
While PIBA has built up a
reputation for excellence, it
can never be complacent. 'This
year, we've achieved excellent
volumes in new lending,'
Walter confirms, 'but we're
also contending with vastly
increased competition,
particularly in the dairy
industry in both Australia and
New Zealand. Many new
lenders are entering the market
aggressively, using price as
their main lever. We are
fighting back, using the quality
of our products and our
expertise. This is the real
added value we can offer our
customers so we must never
lose sight of the kind of service
we aim to provide.'
BEATING TARGETS
In spite of growing
competition, PIBA has turned
in very good numbers over
1995. 'New lending is at 144
percent of budget,' Walter
says, 'which is obviously well
ahead of target. But you have
to remember that the
Last year the network was
expanded by four new offices
in Australia and New Zealand
with three openings slated for
1996.
expansion of our branch
network from nine last year to
16 by early 1996 has played a
role here. We're physically
closer to our customers now
and we're also opening up new
markets in the Northern
Territory and Tasmania.'
HORTICULTURAL
GROWTH
PIBA's target market is the top
25 percent of farmers in both
Australia and New Zealand. It
finances all traditional
commoditities, but is moving
increasingly into horticultural
industries. 'There are certainly
opportunities for us in
commodities,' says Walter, 'but
I'd say the single biggest area
for growth is horticulture,
especially where it is practised
on a broad-acre scale. The
PIBA
In de wandelgangen ook wel de plattelandsdivisie genoemd, heeft een prominente positie in de Australische en Nieuwzeelands primaire
sector. De bank ondervindt echter in toenemende mate concurrentie, met name in de zuivelindustrie. PIBA vecht echter terug met de kwaliteit en de
grote expertise die ze in huis heeft. De resultaten over 1995 zijn veelbelovend, mede als gevolg van de uitbreiding van het kantorennetwerk van
negen naar zestien. Groei wordt met name verwacht in de financiering van de tuinbouwsectoren de financiering van veehouders die grote stukken
grond kopen.
