Bert Heemskerk (HJ. Chairman of the Executive Board of Rabobank Nederland.
Robust growth in loan portfolio and capital position remains strong
The loan portfolio was 11% higher in 2008, at EUR 408.6 billion. Growth in corporate lending for the
local Rabobanks was stronger than in 2007. Lending likewise increased at Rabobank International,
FGH Bank, De Lage Landen and Obvion.The food agri position abroad was extended further. Early in
2008, for example, we increased our stake in the Polish Bank BGZ to a majority interest. This bank fits our
ambition to be a global leader as a food agri bank.
Influenced by the financial crisis, trading results at Rabobank International declined, as did, project
results at Rabo Real Estate Group. Income from the participation in Eureko was negative. Non-recurring
gains, such as from the sale of Alex and the consolidation of Bank BGZ, made a positive contribution to
earnings. Growing loan losses, which were associated with the worsening economic conditions, caused
impairment losses, at 31 basis points of average lending, to be higher than the long-term average of
21 basis points.
Helped by retained earnings and the issue of hybrid capital, equity showed in 2008 a 7% net increase
to EUR 33.5 billion in 2008.
Growth in market shares
In 2008 Rabobank's market share in the Dutch savings market increased by 2 percentage points to 43%.
The local Rabobanks and Obvion succeeded in strengthening their share of the contracting mortgages
market from 28% to 30%.Thanks to robust growth in lending to Dutch enterprises, Rabobank strengthened
its position in the corporate market further. Our market share in the small and medium-sized enterprises
sector increased by 1 percentage point to 39%. De Lage Landen saw a further increase in the volume
of its leasing activities. Rabo Real Estate Group sold fewer owner-occupied houses than in 2007, but the
real estate financings and the real estate assets under management were both higher. At Group level
however, assets under management decreased as a result of the negative returns on stocks.The demand
for Robeco's traditional investment products declined. Our Switzerland-based sustainable private bank
Sarasin realised a record inflow of assets.
The cooperative is there for its clients
The value of our cooperative bank manifested itself clearly in 2008. In these tumultuous times, Rabobank
has shown itself to be an extremely stable factor in the banking sector. As a cooperative, we serve the
interests of our members and clients with our explicit focus on the long term.To us, customer satisfaction
is an important guiding principle. Under the Rabobank 2010 renewal programme, the local Rabobanks
made the first steps towards a better, and modern customer service. I am pleased to see that, in 2008,
Rabobank continued to be among the top 3 of customer-friendliest enterprises and also had the best
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About ihe Rabobank Group
