Global Financial Markets will focus on client-related activities and liquidity management. Other activities
will be phased out and its services will be tailored more to core clients.
Rabobank International intends to strengthen the international retail banking activities further, while
giving priority to existing major agricultural focus areas in Australia, Brazil, California and Poland.
Renewable energy and clean technology will receive greater attention through project finance and
venture capital.
Turbulent market
In 2008, the financial crisis went global and began to affect the real economy. This had a negative effect,
particularly on the results from the Global Financial Markets business entity and on the impairment
losses. Credit exposure related activities, especially, came under pressure, but the money market and the
fixed-income securities units showed strong results. The margins were higher because of a higher risk
premium charges. Regular lending, saw an increase in the number of clients with payment difficulties
as well, particularly in the Irish market.
Global food agri bank
As a leading food agri bank, Rabobank Group aims for a strong presence in the world's key agricultural
countries. For growth in food agri, Rabobank International focuses on broadening its product range
and on making its knowledge available to food agri clients around the world. Other focus areas are
expansion of its retail banking activities in traditional agricultural countries such as the United States
and Australia, and emerging countries with a fast-growing food agri sector, such as Poland and Brazil.
Rabobank Group has bundled its food agri knowledge in Food Agri business Research and
Advisory (FAR).This department operates from the Netherlands, the Americas, Asia and Australia.
FAR supports transactions in various stages, gives loan proposal valuations, contributes to merger and
acquisition proposals and generates ideas for new products. In 2008, its publications included reports
on the New Zealand wine market and the milk market in Brazil. For optimum service to the food agri
clients, the deployment of product specialisations will be intensified.
Expansion of international retail banking
As a result of organic growth, the launch of new activities as well as acquisitions, the international retail
banking activities have grown significantly over the past years. Rabobank International has retail banks
in the regions Europe, the Americas, Australia and New Zealand, and Asia.
Early in 2008, Rabobank International increased its 46% stake in the Polish Bank BGZ to a majority
interest of 59%. This bank employs more than 5,000 staff and serves its Polish clients from approximately
250 branch offices. As a result of this majority interest, Bank BGZ's position as a retail bank for private
individuals, the small and medium-sized enterprises sector and the food agri clients can be
strengthened further. Together with Rabobank Polska, Bank BGZ can now work on the further
strengthening of its market position as one of the most important and largest players in the Polish food
agri sector. Its network will be greatly expanded in coming years. The Polish state holds a minority
interest in Bank BGZ and was planning to sell its shares on the stock exchange in mid-2008. It has
postponed this in view of market conditions.
Traditionally, the Irish ACCBank has always had close links with rural communities. Its network
comprises around 40 branch offices. In addition, ACCBank operates in the Irish market for real estate
finance. Developments in the Irish market call for a review of both the nature and the volume of these
activities. An important first requirement is to optimise the management of existing exposure, in close
consultation with clients.
In the Americas region, Rabobank International serves its predominantly agricultural client base from
the United States, Brazil and Chile. In California, Rabobank International performs retail banking activities
from more than 90 branch offices. The integration of the retail banks that had been acquired earlier
demanded a great deal of effort. In addition, agricultural clients in the United States are served from
a centre of expertise in St. Louis. The retail banking activities in Brazil were expanded further in 2008.
Rabobank International now has more than 10 branch offices in Brazil, that focus mainly on the food
agri sector. With 10 branch offices, its retail banking activities in Chile are still in the initial phase after
the acquisition of FINS Banco in 2007.
The retail banking activities in Australia and New Zealand are focused mainly the food agri sector.
Rabobank has a market share of around 20% in the Australian agri business. Besides loans to the
agricultural sector, the activities include banking services to middle segment enterprises with a business
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Report of the Executive Board
