Rabobank Group's Strategic Framework
Continuity through sustained growth
Domestic strategy: leader in the all-finance market
Since its start in 1898, Rabobank Group has grown from a collection of small,
cooperative rural banks into a prominent all-finance service provider in the
Netherlands and a leading food agri bank with international operations.
Hence, our Strategic Framework portrays Rabobank Group as 'the global food
agri bank with its roots in the Netherlands'. It identifies a number of principles
that determine our strategy for the years ahead.
All-finance service provider in the Netherlands and global food agri bank
Domestic retail banking: responding to a changing environment
Under the Strategic Framework 2005 - 2010, Rabobank Group should remain a Dutch bank
with a dominant market position in food agri, among private individuals and in the small
and medium-sized enterprises sector. At the same time, Rabobank remains a cooperative,
although exceptions may be made for subsidiaries and equity investments. The Triple A rating
must be ensured, underpinned by an annual net profit growth of at least 12%, a return on
equity of at least 10% and a Tier I ratio of at least 10%. Rabobank Group's strategic course will
be driven by sustained organic growth.
Rabobank Group distinguishes three areas in which growth must be realised:
- growth in the Dutch all-finance market, above all through further strengthening of
Rabobank's position in the top end of the private and corporate markets;
- continued international expansion as a leading international food agri bank;
- further growth of and synergy between the Group entities.
The implementation of the Strategic Framework will enable Rabobank Group to provide
optimum services to its clients both at home and abroad while maintaining its sound
financial ratios and remaining a good and attractive employer. In addition, Rabobank Group
will thus be able to advantageously position itself for a possible consolidation cycle in the
European financial sector in the medium term.
Market leadership in the Dutch all-finance market is the main goal. In addition to the mass
market for banking services to private individuals, small and medium-sized enterprises
and the agricultural sector - where Rabobank Group is the clear market leader - growth
opportunities remain in the top end of the private and corporate markets. Further, Rabobank
Group focuses on the 'segments of the future', i.e. large cities, young people and ethnic
minorities. The insurance, investment, consumer credit and real estate product markets
likewise still offer opportunities for further growth.
Rabobank leverages its distribution strength as the 'near-by bank' of the Netherlands, not
just physically but also - and increasingly - via such distribution channels as the Internet,
television and mobile phones. Because Rabobank wishes to remain in the forefront, it
continues its investment efforts for these new forms of distribution. Responding to differences
in client segments and geographical differences by tailored market strategies with distinct
labels and distribution channels.
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About the Rabobank Group
