Successful merger between Interpolis and Achmea
International strategy
Strategy of the subsidiaries
Robeco
De Lage Landen
A single real estate division
16 Rabobank Group Annual Report 2005
Strategy: Plotting a course into the future
The successful merger between Interpolis and Achmea has resulted in
the largest insurer of the Netherlands. This gave Rabobank a 32% interest
in Eureko, Achmea's parent company, resulting in a total interest of 37%.
The combination creates attractive opportunities for organic growth, for
example by a broader product range, a larger number of Rabobank
clients with an insurance at Interpolis and by further implementation
of the multidistribution strategy. Work is continuing to extend the colla
boration with Eureko/Achmea.
International growth is necessary to support SME and corporate clients,
for they are increasing their operations on the global stage. This would
have the added advantages of easier access to the international capital
markets and enhancing Rabobank's continued attractiveness as an
employer. The corporate bank Rabobank International aims to be the
world's leading food agri bank. This ambition dovetails seamlessly
with Rabobank's cooperative origins as the pre-eminent financier of the
Dutch agricultural sector and the enormous amount of expertise it has
developed.
Rabobank's international operations can be divided into five categories:
- International retail banking
Here, Rabobank focuses on three growth markets. Topping the priority
list are traditionally agricultural countries with a stable climate and a
structurally attractive agricultural sector, such as the United States,
Australia and Canada. Second on the list are countries in Central, Eastern
and Southeastern Europe with a growing agricultural sector, such as
Poland and Turkey. Then follow the rapidly emerging countries with a
large agricultural sector, such as Brazil, China, India and Indonesia.
Projects in these countries are small-scale, in which the financial interest
is relatively limited.
- Support of Dutch clients abroad
In order to maintain its market leadership among clients with inter
national operations, Rabobank will in the coming years work towards
strengthening the expertise and selling power of local advisers and
account managers, improving its product management and intensifying
the relationship management with partner banks abroad.
- International wholesale operations
In future years, and more than has been the case in the past, the inter
national office network will focus its wholesale operations on Dutch
wholesale clients, besides the international food agri clients. The primary
geographical focus is on Europe and the countries where Rabobank
International is developing retail operations.
- Professional market activities
Rabobank cherishes its Triple A rating and will continue to use it for a
selected number of profitable product/market combinations in the
professional financial markets. In view of the greater volatility of
professional markets, the target for the future is to realise around 50%
of international profits from international retail operations.
- Rabobank Development Programme (RDP)
Complementary to the successful activities of the Rabobank Foundation,
which started 30 years ago, the Rabobank Development Programme
(RDP) was established. The RDP's aim is to help a number of banks in
developing countries grow into successful 'Rabobanks'. During the next
few years, its activities will be focused on five countries, including China
and a number of countries in East Africa.
Rabobank Group's Dutch subsidiaries play an important part in achieving
the Group's market leadership ambitions. In five years from now, they
should have virtually doubled their net profit and have achieved leading
market positions.
Robeco's repositioning, which includes reaching a position among the
most profitable investment funds, has yielded its first results. In addition,
Robeco aims at higher sales volumes via Rabobank's local private banking
units and further development of third-party distribution.
In the Netherlands, De Lage Landen supports the local Rabobanks in the
area of small and medium-sized enterprises. Internationally, the object is
new collaboration in vendor lease and complementary products to use
cross-selling opportunities. Growth will also come from the distribution
of lease products via Rabobank International and expansion of De Lage
Landen's own network in Eastern Europe and Asia.
Rabobank Group's real estate activities - Rabo Vastgoed (project develop
ment) and FGH Bank (real estate financing) have been combined into a
single real estate division, enabling Rabobank to offer clients a product
that integrates all real estate disciplines. Close collaboration with the local
Rabobanks could then result in substantial growth of the real estate
business, including new market segments such as inner-city redevelop
ment and complex financing structures in commercial real estate.
