About the
Rabobank Group
Chairman's foreword
2008 may rightly be called a historic year. The subprime crisis in the United States
escalated to become a deep and world-wide financial crisis. Regrettably, it has
meanwhile developed into an economic crisis. The banking sector suffered
unprecedented and far-reaching consequences. Across the globe - and in our
country, too - bankruptcies, government interventions and nationalisations were of
the order of the day. It is difficult times like these that the benefits of a cooperative
bank clearly come to the fore. Our societally oriented business culture, which is
based on the Rhineland model, our democratic consultative structure, our prudent
risk management, our sustainable remuneration policy - all these factors, combined
with our strong financial performance and solvency, have contributed to Rabobank
Group's continuing stable performance. In addition, we continued to serve our
clients without the help of others.
Strategy adjustment called for
The radically changing market conditions clearly necessitate an adjustment to our strategy. Like other
banks, Rabobank will have to finance a large proportion of its growth in lending from the increase in its
amounts due to customers. Even more than in the past, we shall focus on our core activities and on
specific growth markets. Where possible, we are expanding our position as the leading provider of all-
finance services in the Netherlands. We are claiming the position as the world's best food agri bank.
As a bank that operates in a socially responsible manner, we are making an extra commitment to clean
technology and sustainable energy. We use the highest standards for our CSR policy and these will be
embedded in our core processes even deeper. We believe that the adjusted strategy will strengthen our
national and international market positions and will provide a sound basis for the future.
Slight increase in net profit in a difficult year
Although 2008 was a very difficult year for the financial sector globally, Rabobank Group realised a 2%
rise in net profit to EUR 2.8 billion. Return on equity was 9.7% and the liquidity position lost none of its
soundness. Amounts due to customers were 10% higher, at EUR 304.2 billion. Also, we kept our good
access to the capital market. Rising credit prices caused interest margins to improve, particularly for
Rabobank International. Our Tier I ratio, the capital ratio that we as a cooperative bank set such great
store by, remained very strong, at 12.7%. Last October and November, rating agencies Standard Poor's
and Moody's, respectively, both reconfirmed our triple A rating, with a 'stable outlook'.
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Rabobank Group Annual Report 2008
