Strategy: subsidiaries and equity
investments
Asset management
Europe that have a growing agricultural sector, such as
Poland. 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, with
a relatively limited financial interest. In 2006, the retail
activities in the United States were expanded further with
the acquisition of Community Bank of Central California
and by making an offer for the shares in Mid-State Bank
Trust. In 2007 in Asia, the retail network was strengthened
with the acquisition of Bank Haga and Bank Hagakita, in
Indonesia. The Raboplus Internet bank was opened in
New Zealand in 2006.
- International wholesale banking
In future years, and more than has been the case in the past,
the international office network will focus its wholesale
operations on Dutch wholesale clients, besides the inter
national food agri clients. The geographical focus of the
wholesale activities is on Europe and the countries where
Rabobank International is developing retail operations.
Rabobank International has a global network in more than
thirty countries and with hundreds of branch offices abroad.
- 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. The
global product groups comprise Global Financial Markets,
Corporate Finance and Participations. Intensified coopera
tion with other Group entities should result in extra growth
of these activities in coming years. In view of the greater
volatility in the profitability of professional markets, the tar
get for the future is to realise around 50% of international
profits from international retail operations
- Rabobank Development Program
The Rabobank Development Program (RDP) was started
in 2004. 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. In 2005, an interest was acquired in the
National Microfinance Bank LTD, in Tanzania. As part of the
RDP's strategy, minority interests in United Rural
Cooperative Bank of Hangzhou, in China, and in Zambia
National Commercial Bank PLC were acquired in the year
under review.
Good cooperation between the Group units is of great
importance. The local Rabobanks offer a broad range of
Robeco products to their clients and they work closely with
Schretlen Co for optimum service provision to high net-
worth clients. In the Netherlands, a large part of De Lage
Landen's products is sold via Rabobank. Rabo Bouwfonds
works closely with the local Rabobanks in order to support
clients along the entire house-buying process. Because the
local Rabobanks are firmly rooted in the local communities,
they understand the clients' housing wishes, while the
good cooperation enables Rabo Bouwfonds to respond to
those wishes. The ambition is to strengthen the cooperation
between Rabobank Group and its subsidiaries further.
The cooperation with Eureko, one of Rabobank's equity
investments, made good progress as well. In 2006, a larger
number of insurance policies were sold via the local
Rabobanks.
The activities of the Dutch Rabobank Group subsidiaries
play an important part in achieving its market leadership
ambitions. Such market leadership would serve as a means
to achieve higher customer value. The target is to achieve
leading market positions and an annual net profit growth
of 10% to 15% of the subsidiaries.
The performance of asset manager Robeco's flagship funds
improved in 2006, as did the overall performance. Robeco
intends to invest in Europe, to grow in the United States
and to invest selectively in emerging markets. Robeco will
strengthen its investment skills further and in the year
under review, these skills were expanded by interests
acquired in Analytical Investment Management and in
Sustainable Asset Management Group. In addition, Robeco
intends to improve its products packaging to make them
accessible to a large audience and to strengthen its posi
tion in institutional asset management. Robeco is to
expand funds distribution through third parties further.
Via Alex, Rabobank offers investment services to active and
independent investors. Schretlen Co focuses on high net-
worth individuals and medium-sized institutional investors,
in close cooperation with the local Rabobanks. Through the
Swiss Sarasin bank, Rabobank serves both private and
institutional clients.
16 Rabobank Group Annual Report 2006
