Corporate clients
Rabobank, the bank for the small and medium-sized
enterprises sector
30 Rabobank Group Annual Report 2004
Core activities
Increased market share in savings
The savings market in the Netherlands grew by 8% in 2004 to EUR 199.7
billion. Rabobank is the market leader and increased its market share to
39% in 2004. This is an excellent performance considering the strong
competition in the savings market and Rabobank's declining market
share in recent years, and is partly due to the introduction of Rabo
InternetBonusSparen.This product offers a higher interest rate, on the
condition that the savings amount is kept in the account for an entire
quarter. The market share of the local banks was 36.1% and that of
Roparco 2.5%. At 31 December 2004, the total savings held at Rabobank
Group was EUR 77.7 (71.6) billion, a rise of 9%. The local Rabobanks
accounted for EUR 72.0 (65.8) billion of this total. Internet saving has
expanded enormously in recent years.
Improved service to investment clients
In order to provide better services to its investment clients, Rabobank
initiated a reorganisation of its securities services at the end of 2003.
Six service concepts were developed, ranging from comprehensive
asset management and regular advice to fully independent investing
without any advice. Clients can opt for the concept that suits them best.
In the year under review, most investment clients made their choice,
with around half opting for independent investing without advice.
Clients indicated that, besides Robeco funds, they wished to be able
to invest in other funds as well via Rabobank. Accordingly, the range of
fund investments offered was extended considerably in 2004. Clients
can now also purchase ABN AMRO, ING, Delta Lloyd, Fortis, Fidelity and
Merrill Lynch funds.
50% of Dutch households bank at local Rabobanks
Half of all the households in the Netherlands use the banking services of
the local Rabobanks. This is the outcome of a financial services survey
held by the GfK market research bureau among 4,000 households.
The figure is virtually unchanged from the previous survey, which was
held in 2002. On average, households use the services of more than
two banks. In the young people's market (ages 0-17), more than 31%
have a relationship with Rabobank, a slight decline on 2002. On the
other hand, there was an increase in the percentage of wealthy
individuals who considered the local banks as their primary bank.
This percentage rose to more than 28%, from 26% two years ago,
taking the local Rabobanks to second place in the market for wealthy
private individuals.
In servicing their corporate clients, the local Rabobanks work closely
with account managers and product specialists of the wholesale bank
ing businesses, i.e. Rabobank Nederland Corporate Clients (RNCC) and
Rabobank International, as well as with Interpolis and De Lage Landen.
In cooperation with RNCC, a tailored all-finance package is offered to
larger corporate clients. Together with Interpolis, the local banks
supply non-life and income insurance to the small and medium-sized
enterprises (SME) and agricultural sectors. For trade financing, clients
can benefit from the cooperation between the local Rabobanks and
De Lage Landen. In the case of treasury activities and services abroad
via the 'Dutch Desks', the local banks work with Rabobank International.
Corporate lending was 6% higher in 2004 at EUR 57.8 (54.5) billion. At 31
December 2004, loans to the amount of EUR 37.7 (35.8) billion had been
granted to the trade, industry and services sector, a rise of 5%. Lending
to non-profit organisations and the construction sector showed the
strongest growth. Fewer loans were granted to businesses in the
healthcare sector. Loans totalling EUR 20.1 (18.7) billion were granted
to the agricultural sector, representing growth of 8%, with particularly
strong growth in lending to the horticultural sector in 2004.
SME are vital, both to the Dutch economy as well as to the banking
business of the local Rabobanks. In the year under review, these banks
not only remained the uncontested market leader in the Dutch SME
sector, but even succeeded in extending their market share to an
average of 40% (39%). The increase was mainly among sole traders,
where market share was 2 percentage points higher at 36%. In the
SME's middle segment (2-9 employees), market share increased slightly
to above 43%. In corporate SME (10-99 employees), the market share
was stable at 37%.
Rabobank also retained its position as market leader in all subsectors of
Dutch SME. For example in construction, where the local Rabobanks
achieved its strongest growth in lending in 2004, their market share is
over 53%. This key industry segment for Rabobank showed the strongest
growth within the SME sector in recent years. The construction sector
consists of more than 73,000 small and medium-sized enterprises, or
12% of the total SME sector.
The policy to strengthen Rabobanks' market share in the large cities is
leading to results. There, local banks increased their SME market share to
more than 26% in 2004.
Market share in SME
in
so e trader
2-9 employees
10-99 employees
