Report of the
Executive Board
Financial developments
in Rabobank Group
Despite all the turbulence in the financial markets, Rabobank Group's Tier I ratio of
12.7% still outstripped the desired high level of 12.5%. Return on equity was 9.7%
and Rabobank Group realised a 2% increase in net profit. Although the bank failed
to achieve its targeted net profit growth, this still is a strong performance, given the
conditions in the market. The growth in corporate lending in the Netherlands was an
important factor in the 11 increase, to EUR 408.6 billion, in the private loan portfolio.
There was a strong, 10% growth in amounts due to customers, to EUR 304.2 billion.
The general choice for security in turbulent times yielded many new clients and a
lot of new funds.
Due mainly to the higher interest result, income was 6% higher, at EUR 11.7 billion.
Because of the stronger focus on cost reduction, operating expenses were 1% lower
at EUR 7.6 billion. The strong performance of Rabobank Pensioenfonds resulted in
lower pension charges. Thanks to these developments, the efficiency ratio improved
by 4.2 percentage points to 65.3%. All told, Rabobank Group realised a net profit of
EUR 2.8 billion, with RAROC at 12.5%.
Handsome result in turbulent times
Financial targets
- Tier I ratio at 12.7%
- Return on equity 9.7%
- Net profit up 2%
Balance sheet
- Loan portfolio up 11% to EUR 408.6 billion
- Amounts due to customers up 10% to EUR 304.2 billion
- Equity up 7% to EUR 33.5 billion
Net profit EUR 2.8 billion
- Efficiency ratio improved by 4.2 percentage points to 65.3%
- Impairment losses at 31 basis points and above long-term average
- RAROC 12.5%
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Rabobank Group Annual Report 2008
