1
Financial results
I
innovative environmental and sustainable energy technologies. Acquisitions by Rabo Ventures included
an interest in the Dutch company Emergya Wind Technologies, the Econcern sustainable-energy
company and Xunlight Corporation, in the United States.
In addition, Rabobank participates in independent private-equity enterprises such as Langholm and
in a number of Gilde funds.
Growth in retail portfolio contributes to loan portfolio increase
In the year under review, the private sector loan portfolio increased by 11% to EUR 100.7 (90.5) billion.
This growth is partly from international retail banking. The appreciation of the US dollar was a contributor,
but this was offset by the depreciation of the
Lending by region
at year-end 2008
America
Europe excluding the
Netherlands
Netherlands
Australia and New Zealand
Asia
Lending by sector
in billions of euros
Food &agri
TIS
Private individuals
90
80
70
60
50
40
30
20
10
0
2004 2005 2006 2007 2008
Australian dollar and the Pound Sterling.
The loan portfolio to private individuals
increased by 43% to EUR 5.5 (3.8) billion. Due in part
to the consolidation of Bank BGZ, loans to the food
agri sector were 22% higher, at EUR 34.4 (28.1
billion, representing 34% of the private loan
portfolio. Loans to the trade, industry and services
sector (TIS) increased by 4% to EUR 60.8 (58.5)
billion.
At year-end 2008,25% (24%) of the loan portfolio
was from international retail banking. The volume
of this portfolio increased by 15% to EUR 24.9 (21.6)
billion. In Australia and New Zealand, the volume
of retail loans was 5% lower, at EUR 8.4 (8.8) billion,
as a result of the depreciation of these currencies
by 17% and 21 respectively. In Europe, the
volume of loans was 32% higher, at EUR 8.5 (6.5)
billion, mainly as a result of the consolidation of
Bank BGZ. At ACCBank, in Ireland, the loan
portfolio decreased by 5% to EUR 6.2 (6.5) billion.
The volume of the American retail portfolio
increased by 27% to EUR 7.6 (6.0) billion.
Income unchanged
Total income was virtually stable in 2008, at EUR 1,997 (1,989) million. Although some units within
Global Financial Markets performed well in the turbulent financial markets, income from this business
entity decreased by EUR 413 million to EUR -145 (268) million. The item 'other income', which largely
includes income from Global Financial Markets, fell by EUR 1,288 million to EUR -1,463 (-175) million.
Leveraged Finance was likewise affected by the turbulence, albeit to a lesser degree, and its income was
1% lower. Structured Finance saw a 37% rise in income. Commission income was 8% lower, at EUR 304
(332) million, partly as a result of lower commission income from securities brokerage.
The increase in spreads, the growth in lending in the international retail banking business, and the
increased activities in Corporate Banking all contributed to the 72% rise in interest income, to EUR 3,156
(1,832) million. Income from Corporate Banking was 15% higher. Of total income, 43% (32%) is from
international retail banking. Fiere, income increased by 34% to EUR 864 (646) million, partly as a result
of the consolidation of Bank BGZ. As a result of worsened economic conditions in Ireland, ACCBank's
income was lower.The retail banks in Australia and New Zealand performed well.
Operating expenses unchanged
In the year under review, total operating expenses were virtually unchanged from 2007, at EUR 1,708
(1,715) million. Almost all of the growth in staff numbers is due to the consolidation of Bank BGZ.
The number of staff rose by 53% to 15,223 (9,957) FTEs. Partly as a result of a reduction of the bonuses
however, staff costs increased by only 2%, to EUR 909 (890) million. The decrease in non-banking
charges as a result of the sale of a few equity investments contributed to the 7% decrease in other
37
Report of the Executive Board
