Domestic retail banking
Net profit from domestic retail banking, comprising the local
Rabobanks and Obvion, which sells mortgages via the broker
channel, amounted to EUR 1,091 (1,024) million. 2006 was a two-
faced year. On the one hand, fierce competition in the mortgage
market put income under pressure. In addition, further laws and
regulations requiring an increase in FTEs caused a decline in gross
income. The 7% increase in net profit was due to lower value
adjustments and taxation. On the other hand, the bank
strengthened its market leadership in the Netherlands.
Local Rabobanks and Obvion
m
m
24 Rabobank Group Annual Report 2006
