Vermeer -
A CORPORATE VIEW
Rabobank
in brief V
What's NewS
Monthly internal neusletter for the Central Banking Sector issue3-March 1996
The Rabobank-sponsored Vermeer retrospective was already sold
out when Queen Beatrix officially opened the exhibition at the
Mauritshuis in The Hague. But senior executives from the bank's
major Dutch corporate clients had no need to stand in line for
elusive tickets. They were able to enjoy the great master's works at
a special viewing arranged by the bank. Over 150 board members
attended the private view hosted by bank chairman Herman
Wijffels and Henk Visser. They had a unique opportunity to
examine the 22 paintings which had also been exhibited at the
Washington National Gallery. Similar events have been organized
for corporates, institutional investors and clients of international
offices. Luxembourg, London and Madrid have taken advantage
of this special opportunity. Unfortunately, these private views are
already oversubscribed. But if you want to enjoy the magie of
Vermeer, the prize-winning exhibition catalogue is still available.
contents
1995 - SATISFACTORY
PERFORMANCE
The figures are out on 1995
and the bank is 'satisfied' with
the results. Consolidated
balance-sheet growth is up 9.1
(6.3) percent to NLG 293.5
C69.1) billion. Group net
"rofit for the reporting year
rose by 11.1 (14.3) percent to
NLG 1.427 (1.284) million.
Rabobank Nederland's
international wholesale
activities (ie. CBS) were good
for 37.5 (37.3) percent to the
total. Lending rose 11.2 (13.6)
percent and we contributed
NLG 358 (194) million to the
bottom line.
Total Group income was lower
than expected, rising by 5.7
(4.5) percent to NLG 8.609
(8.144) million. There are two
factors here - one is
deceleration in interest-rate
profits, the other is a decline in
commission income. The
■brmer grew only modestly
^ecause of partly the bank's
policy of providing finance to
local member Rabobank
business borrowers at
extremely competitive rates.
Commission income was down
due to the abolition of retail
bank charges and a reduction in
Europayment tariffs. But strong
improvements were hooked in
financial transaction results and
off-balance activities. Operating
expenses were considerably
higher than in the previous year
- 6.4 (2.8) percent. Personnel
costs remain the bank's largest
expense, increasing by 6.5 (0.1).
However, this increase is also
due in part to ongoing
international expansion and to
further investment in
automation.
DERIVATIVES TEAM
IN POSITION
Sophisticated derivative
products require special
handling. Although
increasingly attractive to
increasing numbers of
corporates, indepth know-how
is essential if they are to be
used to best advantage. 'This is
why we have set up a
dedicated derivative sales
team,' says Bart Anne Heenk.
'We have recruited four new
specialists to join the existing
two-person desk. From April
1, all derivative sales will be
coordinated from that desk.'
The complexity of the interest-
rate derivatives handled by the
new team - Swaps, FRAs,
Caps, Floors, Swaptions, bond
options and exotics - means
generic sales teams do not
usually have enough specialist
knowledge to give clients the
advice they need. 'By putting
WHAT'S IN WHAT'S
NEWS?
Rotterdam refocus - restruc-
turing for the future 3
Poland in the bank - Rabo
BRP in action 4
CBS in development - how
you can participate 6
Taking credit - we look at
the credit allocation process 8
IT update - what's
happening in information
technology 10
Board in Latin America -
building international
relations 12
this team in place, we can
market and service clients far
more effectively than in the
past.'
Bart Anne Heenk