Wholesale banking and international retail banking
Strategy and targets
Decline in net profit due to difficult second half-year
Rabobank International - Rabobank Group's wholesale banking and international
retail banking business - saw its net profit decline by 43%. Net profit for 2007
was EUR 394 (687) million. Results for Rabobank International were affected by
the credit crisis. Since trade in a number of professional markets was virtually
stagnant, results for Global Financial Markets fell. This decline was partly offset
by the good performance of Participations and by lower taxation.
The international retail banking network was expanded by the acquisition of
Mid-State Bank Trust in the United States, Hagabank and Bank Hagakita in
Indonesia and HNS Banco in Chile. In addition, Rabobank International increased its
Direct Banking activities by opening its fourth Internet bank abroad, in Australia.
www.rabobank.com
Share in Rabobank Group's net profit
in
Wholesale banking and
international retail banking 15%
Rabobank International - wholesale banking and international retail banking business -
employs more than 10,000 staff world-wide and serves clients from 29 countries.
The activities are subdivided according to region as follows: the Netherlands, Europe
excluding the Netherlands, the Americas, Australia and New Zealand, and Asia. In addition,
Rabobank International distinguishes a number of customer sectors and product groups that
are managed globally. These include Global Financial Markets,
Structured Finance, Leveraged Finance, Direct Banking, Telecom
Media Internet and Trade Commodity Finance. Rabobank
International focuses on food agri customers. The various
regions and the units with a global organisation work closely
together for optimum service to clients and markets. The Irish
ACCBank is a 100% subsidiary of Rabobank International, and in
Poland, Rabobank International has a 46% interest in Bank BGZ.
Rabobank International has interests in private equity through
Rabo Private Equity and through Langholm in the UK. Also, it
participates in Gilde funds.
Private sector lending up 4% to EUR 78 billion
Savings at Direct Banking activities up 65% to EUR 5.1 billion
Risk-weighted assets up 19% to EUR 76 billion
Net profit down 43% to EUR 394 million
- Income down 3% to EUR 2,546 million
- Operating expenses 8% higher, at EUR 1,715 million
- Efficiency ratio 6.9 percentage points higher, at 67.4%
- Value adjustments at 63 basis points; higher than the five-year average
- Risk Adjusted Return On Capital 8.4%
- To expand the retail banking activities through selective acquisitions and organic growth.
- To strengthen the position in the Dutch corporate market.
- To deliver added value to clients through knowledge-driven solutions based on extensive
food agri research.
- Annual net profit growth of 10 to 15%.
49
Report of the Executive Board
