Financing global trade
Did you know?
Everyone's problem
Great debate
Seeking alliances
What'sNewS Issue 7-July 1998 II
The newly created product
group, Global structured trade
and commodity finance, was
eager to get across how it
plans to achieve tough targets
for 2002. GPM Shafik Gabr
explained how goals such as a
50-percent increase in gross
income, an ROS of at least 40
percent, and an acceptable risk
profile while building volume
is not overly ambitious.
According to calculations,
F&A represents around 10
All the overheads to
presentations can be
accessed in the public
folder ofyour intranet.
he rating agencies whose results are
already known. 'Let's rentember we're
triple-A and let's remember that this status
imposes demands on us. It sets quality
standards. And it also requires us to
innovate, facilitate and deliver superb
products that reflect our triple-A rating.'
specifically in building the investment
banking side and, of course, our
administration and operations. The cost
of all these improvements is being
absorbed and we're still on budget. On
the risk side, everything is under control.
Well done.'
While Van Slingelandt was clearly sending
a very generat motivational message here,
he also had a number of very concrete
points to make. The three elements he
said are crucial to implementing our
policies and strategies successfully -
customer intimacy, product integration
and, most importantly operational
excellence - are more than just buzz
words. Echoing the growing recognition
)f the millennium problem as everyone's
problem and not just a rather complex
exercise for the IT and administration
people (see pages 4-6), he said these and
audit issues had to be top priority in the
near future. 'The millennium and the euro
are your problem, not someone else's,' he
emphasized. 'If organizations are not
compliant on the deadline, then they will
be closed down. And that applies to banks
as well.'
It wasn't all good news. Cost overruns are
rearing their ugly head and he stressed the
need to manage these. 'The crisis in
South-east Asia will also require
additional provisions. I think we all have
to be more alert to risk potential,' he
added. Better management of return on
solvency is another area that requires
attention, according to the interim chief of
RI, but Atlantis can help there.'
Although every opening speaker at a
meeting of this kind aims to motivate, and
the news was pretty motivating, he also
had a very clear message. 'I may need
some time to get to grips with the detail,
but what I do think is that the frictions
we've seen in the organization are not
insurmountable. They are not big things.
But we have to get them out. Get them on
the table. You know, an enormous
amount of work has already been done.
You all have proved the ability to achieve,
Arthur Arnold's
appointment as director
of strategie alliances,
initially in Europe, had
also caused further
speculation on what
exactly Rabobank is
loing with Belgium's
Kredietbank. 'We're
seriously looking at ways
of creating economies of
scale in the run up to a
single currency and
ongoing EMU,' Van
Slingelandt said.
'Obviously, this means
we're seeking alliances to
bring down cost prices.
That is the issue. We -
and every other bank in
Europe - will have to
defend its patch and find
ways to grow it. As soon
as there is anything
concrete to teil you, we'11 Rik van Slingelandt, Henk Gentis and Reinier Mesritz take time to talk
do that.' In what proved to
be something a 'State of the Nation'
eneral overview of our mid-year
situation, he also gave a round up of
numbers. 'I can teil you, the first four
months are on budget in spite of all the
investment we are having to make,
to move ahead with a policy and a
strategy. All we need to do is the same,
but a little bit better. I don't mind debate,
in fact I welcome it. Great policy only
comes from great debate. But let's have it
out on the table...'
A/ex von Ungern Sternberg,
Claudia Smit (NDS) and Bob
Bucklin (rear) - picking up trade
finance tips
percent of total world trade
flows and is valued at USD
1104 billion. At present, we
have 1.9 percent of the total.
Gabr wants 4 percent by 2002
and has put together a step-by-
step plan to get it. In addition
to strengthening existing TCF
units, no less than 13 new
teams will be slotted into the
network in the near future.
Training, especially in new (IB)
products and techniques, such
as forfaiting and securitization
are also a priority through
which TCF plans to keep that
ROS high.
The team in Utrecht will be
happy to provide more info.
