Despite unfavourable market conditions,
Rabobank Group nevertheless succeeded in
realising a net profit of 4%. An acceptable result,
despite falling short of the long-term target of
annual growth in net profit of 12%.The Tier I
ratio was 10.3 and the return on equity was 9.6%.
Outlook for 2003
Financial developments 47
Rabobank Group aims at realising customer value, with financial
stability and employee value as preconditions. As a financial co
operative, the client's interest comes first in Rabobank Group's
policies and targets. We wish to create customer value by:
- offering the best possible financial services to our clients;
- providing continuity in our services;
- demonstrating our commitment to our clients and their circum
Rabobank Group will continue to aim for long-term annual growth
in net profit of 12%, an annual return on equity of 10% and a Tier I
ratio of 10.0. On account of the economic situation and the stock
exchange climate, combined with scant prospects for concrete
improvement, these targets cannot be maintained for the near future.
We will therefore use the following targets for the near future: growth
in net profit of 8%, return on equity of 8% and a Tier I ratio of 10.0.
In the light of the focus on customer value and an appropriately
conservative risk profile the Rabobank Group considers maintaining
a Tier I ratio of 10.0 as its chief financial target.
Due in part to the issue of Rabobank Membership Certificates, the
Tier I ratio for 2002 was 10.3. Return on equity was 9.6%. Net profit
rose by 4%.
The outlook for the economy and the stock exchange climate in
the near future continues to be highly uncertain. It is therefore diffi
cult to make any definite statements on the profit expected for
2003.The focus remains on leveraging commercial opportunities
and on the continuation of programmes to enhance efficiency and
effectiveness. If income shows only a limited increase, stringent cost
control would obviously be crucial for achieving the financial targets.
Barring unforeseen circumstances, Rabobank Group expects a slight
increase of the operational result in 2003.