Opening up Europe
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mergernews
DG Bank in figures
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It's official. Rabobank and Germany's DG Bank have taken the first step towards
setting up a new alliance based on the multi-domesticity concept. The banks will
work more closely together on cross-border services for all clients, especially
those of our member banks. The move also has wider implications for the whole
of the Rabobank organization, especially Rl. As announced in October, we will be
working with DG Bank to combine international activities around the world. Here
is a brief overview of the our new partners(hip). 5ee pages 3 to 5 for more.
Strong relations
Setting standards
Natural partners
20 What's NzwS Issue 9 October/November 1999
Depending on your perspective, it is
easy to see the proposed close coop-
eration between Rabobank and DG Bank
as either an exclusively 'European' entitv
or as little more than a combination of in
ternational activities to present a stronger
presence on increasingly global markets.
The historie letter of intent signed by the
two financial institutions is only the start
of something potentially much bigger. Ob-
viously, the European single currency
playing field is a major factor and the eni-
German cooperative is a founder member
of Unico, the pan-European umbrella or
ganization of cooperative banks. Says
Bernd Thiemann, chairman of DG Bank:
'We see this alliance with Rabobank as the
driver behind the creation of a European
cooperative financial group. It is an excep-
tional challenge and all the other coopera-
tives are invited to join us.' As founder
partners, Rabobank and DG will set their
own standards which prospective partners
will have to meet.
last 10 years. In its domestic market, the
cooperative sees small and medium-sized
businesses as natural partners.
Recently, DG Bank has moved into the in
ternational arena. The provision of finan
cial services to its corporate customers,
which are increasingly operating cross
border, has long been a cornerstone of its
strategy. In international terms, the Ger-
man cooperative has built a sound reputa-
tion in equities and other products, espe
cially in the so-called New Markets where
no less than 13 IPGs were lead managed
in the 12 months to April 1999. DG
Bank's capital markets and treasury teams
are familiar to our own people on deals m
such as Jumbo Pfandbrief issues. While
this product expertise has made DG Bank
a welcome partner for RI, the proposed
merger between a Dutch and German fi
nancial institution has deeper roots. The
two countries have long been major trad
ing partners which represents a strong
foundation to build cross-border eoopera-
tion. While it is tempting to see the move
exclusively in global RI terms, we should
never lose sight of a broader context that
could shape the future of European finan
cial services.
Cooperative move - last June, DG Bank opened its brand new building adjacent to Berlin's
famed Brandenburg Gate. As Berlin once more assumes its position as capital of a united
Germany, numerous major companies and institutions are commissioning new buildings. For DG
Bank, Berlin is special for another reason. The forerunner to the German cooperative movement's
central bank started life here as long ago as 1895. This new presence, seen by many as the
cooperative bank's embassy in the capital, was designed by American architect Frank O. Gehry.
phasis at Group level is on the regional
implications. The bank may be European
in parentage, but the international
strength of the charter members means it
will certainly be global in orientation.
The proposed merger between a number
of Rabobank and DG Bank activities is
seen by both partners as an initiative
which has room for other European coun
tries to join in. Says Hans Smits: 'This is
an open alliance.' A keen team player, the
The reference to 'cooperative' financial in
stitutions reflects the cooperative back
ground shared by the two banks. Set up in
I 895, DG Bank today acts as central bank
to almost 2,250 independent cooperative
banks and savings and loans with 19,000
branches and over 20 million customers.
It has specialized subsidiaries dedicated to
Allfinanz services, such as leasing, mort-
gages and insurance. It resembles the de-
velopment of Rabobank Nederland in the
In terms of balance sheet, our new partner is
the seventh largest financial institution in
Germany. Here follows an overview of key
1998 numbers, although you should note
that DG Bank and cooperative member banks
are not consolidated.
(x DEM million)
Balance sheet total
Operating profit
Net profit
Return on equity
Total capital ratio (BIS)
Branches:
DG Bank
in Germany
outside Germany
Employees
Member banks
Long-term rating
Moody's Investors Service
Fitch IBCA
Thomson BankWatch
