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

Rabobank Bronnenarchief

Annual Reports Rabobank | 2009 | | pagina 18