7
What's NewS Issue 1 January 1996
cbs happy new year
Ivar Cambridge (international
trade finance, Utrecht): 'It's good
to see that the bank is responding
to the growing Europeanization.
People in Utrecht should have a
European perspective, Utrecht
should grow into the centre of the
European branches.'
certainly looking at another year of major
investment. In 1995, Rabobank pumped NLG
450 million into CBS - 350 million in pure
equity and a further 100 million in costs. 'This
is a huge number for any organization,' Van
Slingelandt says. 'The Group could have put
that money into, say, government honds. An
investment of that nature would have brought
in a 4.5 percent net return. We made 8 percent.
So we actually generated quite a bonus for the
Group as a whole. But our target still remains
10 percent. Our "parent" has told us to finance
our own growth and the "earn to grow"
concept is a sound principle.'
WORLDWIDE R E AUTO M ATI ON
Growth in the coming year means the
international network will again be expanded,
both by new operations in new countries, such
as Vietnam and possibly India. Current
operations, including Hungary and Brazil, will
be upgraded. Indonesia will expand through the
start-up of a second office. At the same time,
CBS will be putting around NLG 35 million
into a worldwide reautomation project. 'If we
want better insight into our positions and if we
want improved operations - actually, I'm
talking about better risk management here -
then we have to spend that money.'
HARSH COMPETITION
All of this investment is designed to strengthen
our position in what Van Slingelandt describes
as harsh market conditions. 'There's a 35 to 50
percent decline in the interest margin in OECD
countries,' he says. 'Now, there must be banks
out there offering credit lines on these margins,
if you can call them margins. Our response has
to be more cross-selling, more fee-based income,
to make any return. In a sense, this can be a
good thing because we become even more
focused both on our core market, food and
agribusiness, and on our clients. But we're going
to have to fight for it. It won't come easy.'
IMPROVED F&A FOCUS
According to Van Slingelandt the combination
of a relationship approach and increased focus
on core business is appreciated by clients. 'It has
made real impact around the world,' he
confirms. 'And so it should. We invest heavily in
this business and we match that investment with
solid research. In the future, we'11 be putting a
lot more into research to expand our knowledge
base on behalf of clients. I think you'11 see our
involvement in F&A deepening and expanding
around the world in the next 10 years.'
Peter Huisman (operations,
Utrecht):
'It's okay to say changes are
positive but you also have to
recognize the consequences.
There has to be communication
between departments.For
example, many people still don't
know exactly what's behind the
'Operations 2000'plan we're all
supposed to be working towards.'
DOMESTIC ENERGY
While F&A will always remain our core market,
we are increasingly penetrating a number of
other selected sectors. 'In Holland, we've
already gained quite a foothold in the top end of
the non-food market,' he continues. 'But
competition is fierce. Five years ago, there was
only one bank attacking the market - ABN-
DominicTerberg (senior account
manager, Hungary): 'The emphasis
in the video on internal
communication and partnership
really appealed to me because we
are dependent on support from
and cooperation with other
offices. Just look at the Deal of the
Year: the more offices work
together, the better the results.'
Oei Chu Boon (operations
manager, Singapore):"The video
touched my heart. We're out to
achieve a common goal for the
good of the bank. Basically,our
culture is a very good one,and we
should cultivate it in every person
of Rabobank.Takethe Deal of the
Year: we can succeed in doing this
by working together. In real life we
are always fighting each other for
money or glamour, but this video
shows we are not bothered with
that.That is the most important.'
