this report. They include the launch of Rabo Mobiel, Central Station, Rabo Groenbank's funding of
which offers fixed telephone rates and a pay feature, Green Labelled Greenhouses and the investment
the launch of the Rabocard with climate contribution, in National Microf nance Bank, in Tanzania.
innovative funding of a wind farm, Rabo Bouwfonds' I hope you will read it with pleasure!
ground-breaking urban project close to Amsterdam
Strong economic recovery
Income up despite difficult mortgages market
Market leadership in the Netherlands
All Group units contributed to the growth in net profit.
Despite fierce competition in the Dutch mortgage market
and side effects of mergers by local Rabobanks, domestic
retail banking showed a healthy increase in profit, while
regaining market share in the mortgage market to above 25%.
Wholesale banking and international retail banking
showed a sharp increase in profit, partly thanks to the good
performance of their equity investments. Our subsidiaries
Robeco, De Lage Landen, Rabo Bouwfonds, Alex,
Schretlen Co and Obvion again achieved excellent results.
A great deal of attention was paid to extending the
successful collaboration with Eureko/Achmea and to
the way the contemplated follow-up could be shaped.
The year 2006 also saw Rabobank launch a number of
initiatives and projects that set the trend for its industry.
A selection of these projects, many of which are pioneering
and groundbreaking, can be found throughout this report.
Supported by a strong all-finance organisation and favourable
economic conditions, we are optimistic about 2007.
no less than 17%. Despite tightening interest margins,
we achieved a 7% rise in income to EUR 10.0 billion - an
admirable feat.
Despite the favourable spread in income, the slowdown in
the growth rate of the local Rabobanks is a point of some
concern. Income growth levelled out slightly under the
pressure of continued fierce competition. In addition, more
staff had to be recruited locally due to the pressing issue of
increased laws and regulations. Moreover, virtually all local
Rabobanks are currently involved in an intensive but much
needed scaling-up operation. For many of the new combi
nations of local Rabobanks, 2006 was their first post-merger
year, during which higher costs are generally incurred.
With the reorganisation processes in progress, we nevertheless
achieved our target of increasing our market share in the
mortgages market in 2006. I am pleased that Rabobank,
with a market share of more than 25%, again succeeded in
strengthening its traditional market leadership.
Whereas in 2005, only the United States, Asia and various
emerging economies had shown favourable economic
development, 2006 saw strong global recovery. The Dutch
economy did not lag behind and grew by 2.9%, almost
twice as fast as in 2005. The AEX index rose by 13% and
many other European stock exchanges likewise showed
double-digit growth figures. Business investments
increased, as did - at long last - consumer spending.
Rabobank's net income grew by 13% in 2006 to EUR 2.3
billion. Lending abroad showed particularly strong growth,
which resulted in a rise in lending to the private sector of
Besides the success of the local Rabobanks and Obvion in
2006 in expanding their market leadership in mortgages
further, Rabobank maintained its dominant market share
in other highly competitive markets. Examples include our
position in the savings market and in the small and medium-
sized enterprises sector and, naturally, our traditionally very
high market share in the agricultural sector. Due to the
acquisition of parts of Bouwfonds we are now the largest
real estate developer in the Netherlands.
With Interpolis/Achmea, which is the largest insurance
company in the national market, we also made important
steps towards all-finance market leadership in the
Chairman's foreword 5
