Wholesale banking and international
retail banking operations
Strategy and targets
Core activities Rabobank International, Rabobank Nederland Corporate Clients
Review of activities
Market and clients
34 Rabobank Group Annual Report 2004
Core activities
Rabobank Group can look back on 2004 with satisfaction regarding the
performance of its wholesale banking operations in the Netherlands
and internationally, which include the international retail banking
operations. This business unit, which comprises Rabobank International
and Rabobank Nederland Corporate Clients, grew strongly. Rabobank
International is responsible for wholesale banking and international
retail banking operations, while Rabobank Nederland Corporate Clients
performs wholesale banking operations in the Dutch corporate market.
Total assets of the wholesale business, including international retail
banking operations, were 28% higher than in 2003. Profit before taxation
rose by 40% to EUR 908 million. Acquiring a 35% interest in the Polish
BGZ bank and announcing the intention of taking a majority interest in
the Turkish Sekerbank represent important steps by Rabobank Group in
2004 towards achieving its international retail growth ambitions.
The acquisition in Poland was made together with the European Bank
for Reconstruction and Development (EBRD), which holds an interest of
15%. Unfortunately, the planned acquisition of Farm Credit Services of
America announced in mid-2004 did not go ahead.
The global economy recovered further in 2004. Rising oil prices and a
weaker dollar dominated international developments.
Because of the low exchange rate of the dollar to the euro, lending
in America, expressed in euros, declined slightly, while in dollars there
was a slight growth. In the USA, growth in the demand for loans
declined, reflecting the higher interest rates in the capital markets.
Nevertheless, lending by Rabobank International to large businesses
in the American food agri sector showed strong growth in 2004.
The client portfolio of the food agri wholesale business in the USA
reported a record 15% growth.
Slight decline in total lending
Total lending by Rabobank Group's international banking business
declined by EUR 0.5 billion to EUR 46.8 (47.3) billion, a drop of 1
The decline is attributable to exchange rate movements. Expressed in
local currencies, there was a slight rise. The increase in lending in local
currencies is mainly due to growth in the Group's international retail
operations. Lending by both Structured Finance and Global Financial
Markets fell. At EUR 15.2 billion, lending to the agricultural sector was
unchanged from 2003. This sector accounts for 32% of total lending.
Lending to the trade, industry and services sector was 4% lower at
EUR 29.2 (30.5) billion.
The Netherlands accounts for 33% of the total loans portfolio. The rest
of Europe accounts for 25%, compared with 20% at the end of 2003.
The increase in Europe is largely attributable to increased lending by
ACCBank.
Lending by region
M
The Netherlands
33%
Rest of Europe
25%
America
18%
Australia
18%
Asia
6%
Strengthening the wholesale operations through organic growth in
In the long term, interna
the world's key food agri countries.
tional retail operations to
Strengthening the international retail operations aimed at the food
represent 50% of Rabobank
agri market, SME and private individuals via participating interests
International's result.
in and/or acquisition of smaller parties with a strong position in non-
Annual growth in operating
urban areas and/or agricultural sectors in high-potential countries.
profit before taxation of 10
Strengthening the position in the Dutch corporate market.
to 15%.
