Managers in the money
WHAT'S NewS Issue 2 February 1997
financial background
13
mosition and its management, they review
Priajor takeovers and acquisitions, and
assess the country's economie climate
overall. The most decisive indicator
remains the level of Tier 1 capital as a
proportion of risk-weighted assets; the debt
rating agencies tend to focus somewhat less
on profitability than do their equity
counterparts.
So: what's in a name? A great deal.
Nevertheless, Van Roovert pragmatically
notes, 'one can't try to maintain one's
triple-A rating at any cost. Obviously, we
must maintain our cooperative tradition
and also insure that we have a strong
profit position. In the end, this all comes
down to equilibrium and inspiration in
management.'
YOU MUST REMEMBER THIS...
Not really a tough assignment as the recent
Moroccan pre-export finance deal closed by
the international trade finance team is only
the first in a series. Barthout van Slingelandt
(legal department), Miranda Postma, Lydia
Saekan and Ivar Cambridge (all ITF) are
behind Rabo's playing it again...
As our global network of treasurers converged on London in mid-January, they joined for a day with
the Investment Banking Management Team to review the new strategy plan for the next two years.
In the opening remarks of Arthur Arnold, the two groups were given a basic new operating
credo - 'sales, sales, sales'.
Peter Geis of the Frankfurt office said
afterwards: 'the "big picture" was clearly
explained. The major strategie question
marks resolved; now, a lot of detailed
work needs to be done. Fortunately, a
good spirit of teamwork was
established.' Bram Kruimel, of Network
Development and Support (NDS), who
chaired the two-day treasurer's event,
says that 'to survive in a fast-changing
world, we need critical mass'. This
means increasing the proportion of
commission and fee income as a
percentage of Investment Banking's
overall income mix; since it consumes an
increasing proportion of total capital,
^profitability must rise apace.
The target is a return on solvency of 20
percent, to be achieved as soon as
possible.
GLOBAL NICHE PLAYER
To meet this goal, all treasuries must
intensify their sales efforts. The aim is to
become a global niche player in
specialized instruments - such as 'stable
value products' for the pension market in
the US. In the meantime, trading
competence will be centered in London,
New York, Singapore and Utrecht. The
roles of Senior Relationship Managers
(SRMs) - coordinating contacts with
financial institutions - and Global Product
Managers (GPMs) - marketing a group of
products around the world - were defined.
Five working groups focused on how to
effectively implement this matrix
management plan.
Among the key factors to success,
human resources rank high on the list.
With the shift from trading to global
sales, we need to attract and keep
experienced staff throughout the global
network.
Technology will also play a crucial role:
management information systems, video
conferencing, and potential a remote back
office system. Also of crucial importance
is a globalization and enhancement of the
research capability.
MONEY TALKS - FORTUNATELY OUR FINANCIAL SKILLS ARE SHARPER THAN THE PICTURE...!
Standing, left to right: Joseph Tsui, Hong Kong; Charles Trainor, New York; Karei Lankenau, Singapore; Geoff Spice, Australia;
Len Steffen, Utrecht; Dirceu de Miranda, Sao Paulo; Jerry Paul, London; Bemard Walschots and Theo van Koningsveld, Utrecht;
Reinier Mesritz, New York; Bram Kruimel, Utrecht; Alberto Penalver, MadridRobert Armstrong and Gijs van der Schrieck,
London; Denis McHugh, Paris; Rogier Krens, Ruut Schalij and Arthur Arnold, Utrecht; Andries Mak van Waay, Amsterdam.
Seated: Mark Blundell, London; Jolanta Meszaros, Hungary; Bert Vos, Warsaw; Peter Geis, Frankfurt; Guiseppe Civardi, Milan;
Jan Haars, Utrecht; Walter van Mieghem, Antwerp.
