The stagnating Dutch economy and the con
tinuing unfavourable stock exchange climate
hampered Rabobank Group's retail banking
business in the year under review. Nevertheless,
gross profit of the retail banking business in
creased by 3%. In 2002, Rabobank Group remain
ed a clear market leader in the savings and
mortgage loan markets as well as in the local
businesses market.
Private clients
Growth in lending
Market share in mortgage loans: 24%
Business clients
Growth in lending
Retail banking 25
Retail banking
business
Helping clients achieve their ambitions by means of financial serv
ices - that is the mission of the retail banking business, comprised
mainly of the local Rabobanks collectively.To that end, they offer
their clients a broad and coherent package of financial services and
products in the fields of lending, savings, investing, insurance and
leasing.
Lending to private individuals, which predominantly consists of
mortgage loans, rose by EUR 9.5 billion in 2002 to EUR 99.0 billion,
an increase of 11%.
In the year under review, the Rabobank Group put a lot of effort into
maintaining and where possible strengthening its position as a
market leader in mortgage loans. In the autumn of 2002, Rabobank's
special rates for the "safeguarded mortgage loan" attracted a lot of
clients who were reluctant to take out (new) mortgages in the cur
rent, uncertain economic situation. Safeguarded mortgage loans
provide for temporary continuation of a client's mortgage payments
should he or she become unemployed or ill for a prolonged period.
Due in part to this autumn campaign and the efforts of Obvion, our
joint venture with the public servants' superannuation fund Algemeen
Burgerlijk Pensioenfonds, Rabobank Group's market share increased
by 1% to 24% in the year under review (local banks 21% and Obvion
3%).There is strong competition in the market for mortgage loans,
particularly in the mortgage switching market, where many smaller
parties are operating. In order to reinforce our high market share a
consistent price policy will be operated, combined with the devel
opment of innovative mortgage products.
Lending by the local Rabobanks to businesses increased by EUR 3.0
billion to EUR 51.4 billion in the year under review, up 6%.The local
business market comprises two sectors: trade, industry and services
and the agricultural sector.
