position, particularly in the large cities. Rabobank Group wishes to develop its International
banking business further, focusing on the food agri business and - particularly in a few
large mature economies - on retail banking.
The implementation of the targets of the Strategic Framework again made strong progress
in 2007. During the year under review, the focus was on the integration of the enterprises
acquired in 2006 and 2007 with Rabobank Group's existing activities. In particular, this
concerned Athlon, parts of Bouwfonds, and Mid-State Bank Trust. In 2007, Robeco
expanded its interest in Transtrend, an asset manager specialising in futures and options
markets, from 49% to 100%. It also took a 64% interest in the Swiss Sustainable Asset
Management Group in order to strengthen its sustainable investment expertise.
Furthermore, Alex is no longer part of Rabobank Group in 2008 after it was sold to BinckBank
given that, from a strategic point of view, its activities no longer form part of Rabobank
Group's core activities. The Board is pleased that the recently acquired enterprises and
participations are contributing to profit.
All Rabobank Group units, i.e. the local Rabobanks and the other Group entities, are
performing well, although cost levels for Rabobank Nederland and the local Rabobanks - partly
because of the tightening margins and the bank's organic growth rate - are monitored closely.
The Supervisory Board gives its full attention to monitoring the alignment and decision
making concerning intended equity investments, acquisitions or divestments and their
consequences for the financial ratios.
With due regard to the regulations around Basel II, the Supervisory Board and the
Executive Board discussed the desired solvency level and the associated policy in 2007.
The Supervisory Board is satisfied with the general course of affairs in 2007 and wishes to
thank both management and staff for the commitment and professionalism they have
demonstrated. The Supervisory Board believes that Rabobank Group is on track to achieving
its longer-term targets and is confident about the future.
Utrecht, 4 March 2008
Supervisory Board
107
Control aspects
