Increase in income and group-wide focus on cost cuts Margins on savings products fell due to fierce competition in the Dutch savings market. Margins on new mortgage loans, business loans, lease transactions and property loans recovered. Rabobank International saw its profit increase thanks to a rise in income from wholesale banking. The drop in income from asset management was due in particular to a decline in performance-related commissions at Robeco. Income was up at Rabo Real Estate Group thanks to an increase in interest income in particular. There was a group-wide focus on cost cuts. We formed a provision within the scope of the deposit guarantee scheme. The efficiency ratio improved by 3.8 percentage points on balance, landing at 61.5%.The drop in activity level led to headcount reductions at nearly all divisions. The poor state of the economy made 2009 a difficult year for Dutch business and industry. This resulted in an increase in bad debt costs at the local Rabobanks. Also at Rabobank International and De Lage Landen bad debt costs were at a high level. At group level, bad debt costs stood at 48 basis points of average lending; the long-term average is 21 basis points. On balance, return on equity amounted to 7.5%. Retained earnings and the issue of hybrid capital instruments were to thank for a 14% increase in equity to EUR 38 billion. Piet Moerland, Chairman of the Executive Board of Rabobank Nederland. management and held in custody continued to increase at the local Rabobanks and Schretlen Co as well. Assets under management and held in custody for clients rose by 25% to EUR 230 billion on balance. Responsible banking Rabobank has defined Food Agribusiness Principles and a related draft value chain policy to further integrate sustainability into our lending practices in dialogue with all stakeholders. These principles were shared and discussed with clients, non-governmental organisations and other stakeholders on a global level in 2009. Rabobank also talked about the draft value chain policy with clients following which it was fleshed out. Furthermore, we will be making our investment services more sustainable. It is Rabobank's ambition to make responsible investing part and parcel of its regular investment services. The group entities concerned - i.e. Rabobank Private Banking, Robeco, Schretlen Co, Sarasin and Rabobank International - are bringing their investment services in further alignment with the United Nations Principles for Responsible Investment. Rabo Real Estate Group continued to work towards investing in the future during 2009 and De Lage Landen developed several sustainable innovations in the areas of food and agri, and cleantech.The Dutch Greentech Fund and the Mainport Innovation Fund were established to encourage investments in sustainable techno start-ups. Group-wide initiatives were undertaken to promote energy efficiency and achieve climate neutrality in our operations. In 2009, local Rabobanks donated more than EUR 25 million in support of local communities. Cautious economic recovery The global recession ruled rampant at the beginning of 2009.The extreme stress on the financial system left deep marks on production and trade and on the transportation sector. Although 2009 will be remembered as'the year of the great recession', most countries have now left the slump behind them. The recovery ofa number of emerging economies, particularly in Asia, is remarkable. Economic recovery is much more moderate in industrialised countries. 7 Chairman's foreword

Rabobank Bronnenarchief

Annual Reports Rabobank | 2009 | | pagina 8