Credit market crisis hinders Rabobank International
Organic recovery in the Netherlands
Having and keeping satisfied customers is Rabobank's number one priority
Members are important to the cooperative
Sustainability is in our genes
Strong performance in asset management, leasing and real estate
Our asset management, leasing and real estate activities each performed very well. It is good
to see growing collaboration among the Group units. Obviously, mutual strengthening and
support, where possible, are essential to the group concept.
Since the summer of 2007, the financial world was upset by the so-called subprime
mortgages in the United States. This 'credit crunch', as it has come to be called, also hindered
Rabobank International in the second half of 2007. Results for Rabobank International were
affected by the credit market crisis. Since trade in a number of professional markets was
virtually stagnant, results for Global Financial Markets fell.
With mixed news from abroad, everything went quite well in the Netherlands. Our advertising
icon Jochem was replaced by Fatima. In terms of name recognition among the Dutch public,
Fatima has meanwhile far outstripped Jochem. In addition, Rabobank was pronounced one
of the Netherlands' most popular employers in 2007. According to the Intermediair
magazine, we are even the number one. I am proud of these achievements and I hope we
shall be able to repeat them for many years to come.
Also in 2007, we enhanced our image as an innovative bank, including tests with paying
via Rabo Mobiel cell phones. Rabo Mobiel is one of the many new distribution channels with
which we affirm our image as a near-by bank in the new digital world. Another novelty that
adds to our reputation was the launch of Bizner, the first online internet merchant bank without
account managers or branches, but with self-service. In the Dutch market for consumer loans,
De Lage Landen's Freo is another new, innovative and customer-oriented label.
Best of all though was the news from the Netherlands that the results of the local
Rabobanks, after a disappointing year 2006, showed strong recovery in 2007. We saw strong
growth in lending, in savings and in the number of securities transactions. The strong growth
in savings is good news because funding is at least as important as lending. The people at
Rabobank do not work there for their salaries alone. I can tell that our people really want
Rabobank to be successful and that they put in an extra effort and show genuine commitment.
Their dedication to the success of a local Rabobank reflects on their local community.
We attach great importance to client satisfaction and loyalty. As in 2006, clients were
satisfied with our services in 2007, as is evidenced by the fact that Incompany business
magazine awarded the title of the Netherlands' best private bank to Schretlen Co, with
Rabobank Private Banking coming second.
In 2007, work progressed to intensify the engagement and influence of the more than the 1.6
million members that the local Rabobanks now have. Professionalisation within supervisory
boards of the local Rabobanks increased further. Also, the cooperative dividend was defined
further, with members having a say in the specific expenditure of this money. We are working
hard to strengthen ties with our members by offering special member benefits.
In 2007, Rabobank distinguished itself in the field of sustainability - and not by climbing on
Al Gore's bandwagon. In fact, we were quite aware of the spirit of the times in 2006 -
possibly because the concept of sustainability has been in our genes from our beginnings
over a century ago. Examples include the launch of the credit card with climate
compensation and the Rabo KlimaatHypotheek. In addition, Robeco acquired the
Sustainable Asset Management Group, another leading Swiss sustainable asset manager
besides Sarasin, in which we took a controlling interest late in 2006.
After a number of acquisitions in 2006 and 2007, we decided, on the basis of a strategic
reorientation, to sell the Alex online investment bank, because there was an overlap with the
services offered through Rabo Direct Beleggen.
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Rabobank Group Annual Report 2007