Domestic retail banking
The poor economic conditions in the Netherlands caused a drop in demand
for loans and an increase in bad debt costs at domestic retail banking.
The local Rabobanks and Obvion saw their loan portfolio rise by 4% to
EUR 278.0 billion in 2009. Rabobank strengthened its position in the
corporate market. Mortgage loans gained a slight market share despite
the contracting mortgage market. Margins on new mortgage loans and
business loans recovered. Amounts due to customers were up 6% to
EUR 185.2 billion, which allowed the local Rabobanks to entirely self-fund
their growth in lending. Strong competition in the savings market depressed
the margin on savings and also caused a slight drop in market share.
The decline in interest income and the rise in bad debt costs resulted in
a lower profit. The activity level was down, so that fewer employees were
needed; costs were critically examined. Operating expenses were down.
Net profit stood at EUR 1,213 million, a 15% decrease. Rabobank developed
new sustainable and service-oriented products, and stepped up services
for business start-ups. More and more local Rabobanks are implementing
the Rabobank 2010 Programme.
www.rabobank.nl,www.obvion.nl,www.bizner.nl
Share in Rabobank Group's
net profit for 2009
Low growth in lending and increase in bad debt costs due to economic situation
Loan portfolio up 4% to EUR 278.0 billion
- Market share of mortgage loans up 0.3 percentage point to 29.9%
- Market share of SMEs up 2% percentage points to 41%
Amounts due to customers up 6% to EUR 185.2 billion
- Market share of savings down 0.5 percentage point to 40.2%
Net profit down 15% to EUR l,213million
- Efficiency ratio at 63.6%, a 2.1 percentage point improvement
- Bad debt costs above long-term average at 26 basis points
Domestic retail banking 53%
- RAROC at 15.2%
Rabobank Group strategy
Contribution to group strategy
All-finance market leadership
in the Netherlands
- Strengthening the market leadership position in all-finance market segments
- Building on the position in the corporate market
- Implementing the Rabobank 2010 Programme
International food and agri bank
- Maintaining a leading position in the Dutch agricultural sector
17
Domestic retail banking