Strategic and financial core objectives
Realisation of Strategic Framework 2005-2010
International is to focus more on food agri. In addition, Rabobank International will more strongly
manifest itself in the areas of sustainable energy and clean technology. The business entity Global
Financial Markets will confine itself to client-related activities and liquidity management; other activities
will be phased out. Rabo Development will gradually increase the number of minority interests in partner
banks having a food agri focus in developing countries. Abroad, the Rabobank Foundation will focus
on countries where Rabobank International and/or Rabo Development operate.
Sharper focus among subsidiaries
The subsidiaries likewise will focus more on supporting the realisation of Rabobank Group's core
objectives, i.e. all-finance market leadership in the domestic market and building up a distinct position
as the world's pre-eminent food agri bank. Other important main functions of the subsidiaries and
participations is continuing to be the leveraging of specialisations and achieving sound financial returns.
The strategic core objectives are:
- to achieve all-finance market leadership in the Netherlands;
- to strengthen our position as the leading international food agri bank;
- further growth of, and greater synergies with, our subsidiaries.
A continued, high credit rating demands an adequate Tier I ratio and a stable growth in profits.
Accordingly, Rabobank Group has formulated the following financial objectives:
- Tier I ratio of at least 12.5%;
- return on equity of at least 10%;
- 10% net profit growth.
The changes in market conditions and the choices made have had financial consequences. Because the
Basel II regulations entered into force on 1 January, 2008, the minimum for the Tier I ratio has been
raised from 10.0% to 12.5%. The shift of activities within Rabobank International towards activities with
a lower risk profile has caused us to reduce the expected annual net profit growth from 12% to 10%.
Market leadership in the Netherlands strengthened
Rabobank Group's market shares in the various private market segments have grown steadily since 2004.
After an initial decline, to 23%, in 2005, the market share of the local Rabobanks and Obvion in the
mortgages market grew to 30% in 2008. In the savings market, Rabobank Group's market share grew
from 39% in 2004 to 43% in 2008. Our market share of consumer credits grew partly as a result of the
online Freo label and the establishment of a specialised Consumer Finance unit at De Lage Landen.
In the corporate market likewise, market shares in most segments improved by a few percentage points.
The policies aimed at strengthening our position in the large cities have resulted in higher market shares
for the city banks within their respective operating areas.
Building on our international position as a leading food agri bank
Rabobank International has strengthened its position in both traditional and emerging food agri
markets by investing in retail banks abroad. Over the past years, it expanded its activities in the United
States by acquiring Community Bank of Central California and Mid-State Bank &Trust. In 2008, a majority
interest was acquired in Bank BGZ, in Poland. Smaller acquisitions of retail banking activities were made
in Chile and Indonesia in 2007. In Brazil, Rabobank started a retail banking network with a strong focus
on food agri. Trade Commodity Finance, which also focuses on food agri, shows strong organic
growth. For optimum leverage of the synergies, Rabobank is set to focus on integrating the acquisitions
made. Over the past years, Rabo Development has been investing in partner banks in Tanzania, China,
Zambia, Mozambique, Paraguay and Rwanda.
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About the Rabobank Group
