Financial developments
Rabobank Group reported a good financial
performance in 2003. Net profit increased by 12%.
The Tier I ratio was 10.8 and the return on equity
was 9.4%. All three figures exceeded the short
term targets, despite not particularly favourable
circumstances.
Financial targets
Outlook for 2004
Financial targets
12 Rabobank Group Annual Report 2003
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 circumstances.
The precondition for financial stability is achieved by aiming for a steady
development of three financial targets:Tier I ratio, return on equity and
net profit growth.
Rabobank Group has the following long-term targets:
- Tier I ratio of 10.0;
- return on equity of 10.0%;
- net profit growth of at least 12.0%.
Due to the state of the economy and the stock exchange climate, we
introduced short-term targets in 2002. Since the prospects for an
improvement in the near term are still not firm enough, these targets
were continued in 2003: a Tier I ratio of 10.0, return on equity of 8.0%
and net profit growth of at least 8.0%. In 2003, all three targets were
comfortably exceeded. In terms of the long-term targets, only the target
for return on equity was not achieved.
Rabobank Group is quietly optimistic about 2004. A slight improvement
in the economy is possible and, accordingly, we may be able to achieve
a limited increase in income. If the financial targets are to be attained,
Rabobank Group will again have to strictly manage costs. Barring
unforeseen circumstances, Rabobank Group expects to realise a further
growth in net profit in 2004.
2003 2002 2001 2000 1999
Tier I ratio
10.8
10.3
9.9
10.3
10.0
Return on equity
9.4%
9.6%
9.2%
10.1%
9.8%
Net profit growth
12%
4%
1%
17%
9%
Volkert van der G.,the murderer
of Pim Fortuijn, is sentenced to
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