Effectenbank Stroeve
Ambitions and outlook for 2005
Financial results
-
-
-
-
40 Rabobank Group Annual Report 2004
Core activities
Schretlen Co
After a few difficult years, Schretlen Co has turned the corner again.
Due in part to a handsome cash flow of over EUR 900 million, assets
managed increased to EUR 5.9 (4.7) billion. The asset inflow was from
both institutional clients and high net-worth individuals. New program
mes that focus specifically on children and grandchildren of high
net-worth individuals, as well as on capital care were successful and
were highly appreciated by clients. Despite strong competition, this
resulted in an increase of the number of clients as well.
Assets managed and held in custody by Effectenbank Stroeve grew by
22% to EUR 3.0 (2.4) billion in 2004. The bank benefited from its strong
customer and market focus and from the constant outperformance of
its asset management portfolio. The growth was achieved in brokerage
(intermediaries) especially. These services to professional clients, such as
independent asset managers, increased by more than EUR 500 million
to EUR 2.2 billion. Of the total assets, around 75% is from brokerage. In
the Netherlands, Effectenbank Stroeve is market leader in these services.
Rabobank Group expects the advance of alternative products such as
guarantee funds to continue. Accordingly, the Group will market new,
innovative products. Iris, the independent research agency of Rabobank
and Robeco, expects the global economy to grow in 2005. If the
investment climate improves further in 2005, prospects for the Asset
management and investment entity will be good. In 2005, there will be
renewed strong focus on cost management. The target is to improve
the operating profit before taxation by at least 15%.
www.robeco.com,www.alex.nl,www.schretlen.com and www.stroeve.com
Assets managed and held in custody by Effectenbank Stroeve
Brokerage
75%
Asset advice
15%
Asset management
5%
Other
5%
Results (in EUR millions)
2004
2003
change
Interest
87
89
-2%
Commission
512
445
15%
Operating profit before taxation from asset management and investments
Other income
74
120
-38%
increased by 15% last year, to EUR 197 (172) million. Income was 3%
Total income
673
654
3%
higher at EUR 673 (654) million. The increase is due to higher commission.
Staff costs
285
274
4%
The effect of this was partly offset by lower results on financial trans
Other operating expenses
191
210
-9%
actions and lower income from securities and participating interests.
Total expenses
476
484
-2%
Operating expenses fell by 2% to EUR 476 (484) million. Staff costs
Gross profit
197
170
16%
increased 4% to EUR 285 (274) million. The cost control policy led to
Value adjustments to receivables
1
1
results, with other operating expenses down 9% to EUR 191 (210) million,
Value adjustments to financial fixed assets
(2)
thanks in part to lower IT costs. The figures include a non-recurring
Operating profit before taxation
196
171
15%
charge of EUR 10 million for spread results achieved by Robeco Group
Assets managed and held in custody
195
184
6%
in 2003. It has been agreed with the Financial Markets Authority (AFM)
(in EUR billions)
that spread results are taken to investment funds.
For third parties
140
132
6%
Investment portfolio
55
52
6%
IFRS
Number of orders in the Netherlands (in millions)
5.6
5.7
-2%
The application of IFRS will have a limited effect on the results of the
Local Ra bo banks
2.7
2.8
-4%
asset management activities.
Alex
1.9
2.0
-5%
Robeco Group
0.9
0.8
14%
Other
0.1
0.1
FTEs
1,886
1,988
-5%
