Financial results
More assets managed sustainably
Investment orders handled in the Netherlands up 8% to 8.2 million
Income up 77%
Operating expenses up 80%
Assets managed and held in
custody for clients
at year-end 2007
Equity
Fixed income
Mixed
Alternatives
Money market
Real estate
Other
47%
10%
6%
Thanks to Rabobank Group's expansion of its interest in Sarasin,
the proportion of assets managed in a sustainable manner has
been significantly enlarged since the end of 2006. Being widely
known as an investor with a long and successful track record in
areas such as renewable energies and energy efficiency, the rising
awareness amongst investors of the threats and opportunities
brought about by a potential change in our climate boosted
Sarasin's sustainable assets from EUR 3.2 billion to EUR 4.8 billion.
Robeco acquired a majority interest in Sustainable Asset Management
Group (SAM Group) in 2007. SAM Group ranks among the top of sustainable asset managers.
Since 2007, Robeco's activities include engagement on behalf of Dutch equity funds operating
in the market for private individuals. In this context, Robeco actively enters into constructive
dialogue with a large number of enterprises it invests in. It also performs engagement
activities for Rabobank Pension Fund, among others. As a result, the proportion of assets
managed for which Robeco applies engagement has seen substantial growth.
Due to growth in the number of clients and the turbulence in the financial markets, the large
number of orders handled in 2006 was exceeded in 2007. The number of orders for securities
and in-house funds in the Netherlands grew by 8% to 8.2 (7.6) million. The number of orders
handled by local Rabobanks increased by 8% and the number of in-house fund orders
handled by Rabobank Group increased by 11%. In 2007, Alex succeeded to increase its
number of orders by 17% compared to 2006.
Sarasin has been consolidated in Rabobank Group's figures since late 2006. Transtrend has
contributed in full to Rabobank Group's results since March, 2007. Alex contributed to
Rabobank Group's profit for the full year 2007.
The gain on the sale of Alex should have a positive effect on Rabobank Group's results for 2008.
Increases in both commission and other income were important drivers for the 77% growth,
to EUR 1,479 (836) million, in total income. Net interest income was EUR 4 million lower,
at EUR 82 (86) million. Commission income increased by EUR 441 million to EUR 1,089 (648)
million. The increase in commission income was largely due to Sarasin's full consolidation as
from year-end 2006. The strong investment performance of the Transtrend Diversified Trend
Program and the expansion of the Group's interest in Transtrend also contributed to the
increase in commission income. The gains from the sale at Sarasin of both its Luxembourg
and its brokerage activities were important drivers for the EUR 206 million increase in other
income, to EUR 308 (102) million.
Total operating expenses were 80% higher in 2007, at EUR 991 (551) million, largely as a
result of the consolidation of Sarasin. This fact, among others, caused staff costs to increase
by EUR 251 million to EUR 581 (330) million and other administrative expenses by EUR 176
million to EUR 386 (210) million. The depreciation charges were EUR 13 million higher, at
EUR 24 (11) million, partly due to higher software depreciation.
61
Report of the Executive Board
