Wholesale banking and international
retail banking
Consistent performance thanks to drop in bad debt costs
2010 was the year of economic recovery after a deep recession.
Value adjustments were down 36% to EUR 597 million at Rabobank
International because of this recovery and good credit management.
This corresponds to bad debt costs of 64 basis points of average lending.
Lending rose by 6% to EUR 99.1 billion. Currency effects were a decisive
factor in this rise. The share of the food and agri sector in the portfolio grew
by 5.9 percentage points to 44.5%. The direct banking activities saw a
considerable inflow of savings deposits, which rose to EUR 11.6 billion.
The increase in other income was attributable in part to the sale of some
of the equity interest in Indian-based Yes Bank and higher trading income
at Global Financial Markets. Net profit was up 37% to EUR 774 million
thanks to an increase in income and a drop in value adjustments.
RAROC rose to 10.1 and the internal capital requirement landed at
EUR 7.4 billion. Policy was formulated to make value chains more
sustainable. A strategic alliance was formed with the Agricultural Bank of
China; this alliance will allow Rabobank to strengthen its position in China.
The purchase of three relatively small banks in California further boosted
the retail activities outside the Netherlands. Rabo Development acquired
a 30% equity interest in Sicredi, a Brazilian cooperative. This transaction is
currently still subject to local regulatory approval.
Strategy for Rabobank International
www. ra bo ba n k.com
Rabobank International's strategy focuses on maintaining and building on our market
leadership position in the Netherlands and on the food and agri sector internationally.
Strengthening the share of the wholesale market is the number one priority in achieving
market leadership in the Netherlands. Rabobank International collaborates closely with the
local Rabobanks to serve the top end of the market. Outside the Netherlands, the scaling-
down of non-core activities brought about a further increase in the share of the agricultural
sector in the total portfolio in 2010.
Rabobank Group strategy Contribution to group strategy
All-finance market leader in the Netherlands
- Delivering products through local Rabobanks
- Supporting local Rabobanks in their service provision to wholesale clients
- Serving top corporates in the Netherlands
- Providing risk-bearing capital
- Supporting globally operating Dutch clients
International food and agri bank
- Broadening product offering and leveraging knowledge for food and agri clients
- Broadening the retail banking network in key food and agri areas
- Developing renewable energy and cleantech as specialist areas of expertise
Share in Rabobank Group's
net profit for 2010
Wholesale banking
and international
retail banking 28%
33
Wholesale banking and international retail banking