public image among the Dutch banks. Clients likewise indicated their satisfaction with the services of
our subsidiaries, such as De Lage Landen.
Social engagement and responsibility
As a cooperative bank, Rabobank uses clear sustainability and social responsibility criteria for enterprises
we finance. The end of 2008 marked the tenth anniversary of our Ethics Committee, which advises on
social and moral issues.
The expansion of our sustainable investment activities included the acquisition of a stake in Econcern.
Robeco likewise positioned itself more emphatically as a sustainable investor. We have started a dialogue
with stakeholders on CSR issues and have joined what is known as the Equator principles and the Round
Table on Sustainable Palm Oil, among others.
Through the Rabobank Foundation, we continued our promotion of cooperatives and microfinance
in a number of developing countries in 2008. Rabo Development has built up interests in foreign
partner banks, acquiring a 40% interest in the Paraguayan Banco Regional and a 35% interest in
Banque Populaire du Rwanda in 2008. Also, the local Rabobanks again distributed profits, in the form
of cooperative dividend, for the benefit of people and society.
Economic recovery possibly not until 2010
In 2009, virtually all western economies will have to cope with a recession, and many emerging markets
will see a slowdown. An economic downturn occurring in so many countries simultaneously must lead
to a fall in international trade. It is anticipated that the impact of the oil price shock in 2008 will in 2009
be followed by the consequences of the continuing state of unrest in financial markets. Of course, all
this will not leave the open economy of the Netherlands unaffected. Although the Netherlands had a
relatively good starting position when the recession set in - a high gross domestic product and a low
unemployment rate - this bright picture suddenly, darkened during the fourth quarter of 2008. It has
since become evident that, with a rising unemployment rate in the offing, the Netherlands, too, is going
through a recession. It is difficult to predict how deep this recession is going to be and how long it will
last. Much will depend on recovery in the financial markets. If these show an upswing, the world
economy could begin to slowly recover in 2010. And then the Dutch economy too, driven by growing
exports, could find the way up again.
Effects on Rabobank Group in 2009
There is no doubt that in 2009, Rabobank Group will feel the consequences of the unfavourable economic
climate in the Netherlands and the sombre prospects for the world economy. Our solvency and liquidity
are expected to remain strong. In the Netherlands, the competition for savings is likely to continue.
The recession will impact our growth in lending and will result in impairment losses that maybe above
our long-term average. In these exceptional circumstances, cooperative banking demands extra care in
balancing risk against return. It is necessary for us to maintain our robust capital position if we wish to
keep on serving our clients well, also in the long term. In 2009, we shall continue to fulfil our role as a
socially committed bank that operates responsibly.
Bert Heemskerk, Chairman of the Executive Board of Rabobank Nederland
8
Rabobank Group Annual Report 2008
