Financial results
Each local Rabobank has its own CSR policy
Private sector lending up 11% to EUR 244 billion
TIS
Income up 4%
Operating expenses down 1%
Value adjustments at 6 basis points
All local Rabobanks and Obvion put a great deal of effort in corporate social responsibility,
with the Boards and management teams identifying their own priorities, accountabilities
and goals. At the end of 2007, all local Rabobanks had CSR coordinators for CSR
implementation and coordination. The outcome of a survey held in 2007 was that staff
members have become more familiar with the concept of CSR and that they appreciate
Rabobank Group's CSR policy. Social engagement and environmentally conscious operations
are considered as strengths. The chief focus of interest in 2008 will be to embed CSR further
in the daily activities of all staff members.
Early 2007 saw the launch of the Rabocard with climate contribution. For each purchase
that a client makes with his Rabocard, Rabobank, in collaboration with World Wildlife Fund,
invests in projects that help fight climate change.
From February 2007, CSR screening is a standard element in corporate lending to larger
clients among small and medium-sized enterprises.
In 2007, private sector lending increased by 11% to EUR 244.1 (220.9) billion, of which 70% is
granted to private individuals, 19% to the trade, industry and services sector and 11% to the
food agri sector. Loans to private individuals were 8% higher,
at EUR 172.1 (158.9) billion, virtually all of which - EUR 168.7
(153.7) billion - are mortgages.
Growth in the number of clients among small and medium-
sized enterprises and the growing demand for loans caused a
16% increase, to EUR 46.1 (39.9) billion, in lending to the trade,
industry and services sector. Lending to the real estate, transport
and building sectors particularly showed strong growth.
Lending to the food agri sector grew by 17% to EUR 25.8
(22.1) billion, with the primary agricultural sector accounting for the greater part. These loans
grew by 19% to EUR 21.6 (18.2) billion. Higher lending to the fruit and vegetables sector and
the dairy and animal protein sector was an important contributor to this growth.
Lending by sector
in billions of euros
Food agri
Private individuals
250
200
150
100
50
0
2005 2006 2007
In the year under review, total income was 4% higher, at EUR 5,795 (5,551) million, mainly
due to growth in interest income. Despite fierce competition in the mortgages market and
lower income from penalty interest, interest income was 4% higher, at EUR 4,391 (4,226)
million. The increases in both lending and savings offset the effects of lower mortgage
margins and lower penalty interest. Commission income from payment transactions and
other financial services were major factors in the 10% rise in commission income to EUR
1,379 (1,259) million. Commission income from insurance activities was 1% lower, at EUR 376
(379) million.
Total operating expenses were 1% lower in 2007, at EUR 3,835 (3,877) million. The staffing
level in the domestic retail banking business declined by 71 FTEs to 29,304 (29,375) FTEs.
In line with this decrease staff costs were 2% lower, at EUR 2,072 (2,118) million.
Other administrative expenses were 1% higher, at EUR 1,618 (1,607) million, partly as a result
of higher training costs and higher marketing expenses.
Because the favourable economic climate in the Netherlands continued, the increase in the
item Value adjustments was virtually in line with the growth in lending. The item Value
adjustments rose by 4% to EUR 145 (139) million in the year under review. This corresponds
46
Rabobank Group Annual Report 2007
