Sound CSR policy
Rabobank wants to make an economic, social and ecological contribution to building a
sustainable society. It therefore sets high standards in the areas of the environment, society
and governance with regard to its services and its policy on responsible banking. Clients need
to be able to see that the services they receive are responsible and transparent.
Financial targets
The current strategic core objectives are to become the market leader in the Netherlands,
to build on Rabobank's position as the world's leading international food and agri bank, and
to achieve further growth at, and greater synergy with, subsidiaries of Rabobank Group.
An adequate Tier 1 ratio and stable profit growth are necessary in order to maintain a high
level of creditworthiness. Given this, Rabobank Group has formulated the following long-term
financial targets:
- a Tier 1 ratio of at least 12.5%3;
- a minimum return on equity of 8%;
- 10% net profit growth annually.
The Tier 1 ratio rose to 17.0% in the year under review, and return on equity stood at 7.6%.
Net profit was down 5% compared with 2010.
When updating its strategy for the period up to the end of 2012, Rabobank made the
following decisions:
Greater focus on funding
Given the change in market conditions and the stricter capital and liquidity requirements under
Basel III, Rabobank Group has decided to place even greater emphasis on sound balance sheet
ratios. Any increase in lending is largely dependent on growth in amounts due to customers.
It is important that the local Rabobanks, Rabobank International and the subsidiaries arrange a
significant portion of their funding themselves. One way of working out whether balance sheet
ratios are sound is to calculate the loan-to-deposit ratio (the ratio of credit loans to amounts
due to customers). This ratio improved at group level in 2011 thanks to moderate growth in
lending in combination with a sharp rise in amounts due to customers.
Greater emphasis on corporate market
With regard to the Netherlands, Rabobank wants to be the leading bank across the entire
spectrum of businesses. A strong position on the corporate market creates added opportunities
for providing services to business owners in a private capacity. In addition, Rabobank wants to
achieve further growth in the private banking segment by means of differentiation in customer
services, partnerships with subsidiaries and providing better advice. At an international level,
Rabobank wants to offer the best possible services to its major Dutch clients through its
extensive network. Rabobank's image in the corporate market was boosted by an extensive
campaign in 2011Activities that were started in recent years paid off, making Rabobank the
leader in this market.
Better customer service at lower cost
Rabobank wants to continue to grow and develop as a cooperative. The rationale behind
Rabobank is the same as its primary objective: to help customers achieve their ambitions.
The client service model has been further adapted in order to enable the local Rabobanks to
respond effectively to the changing needs of clients. During the year under review, the range
of services offered through direct channels was extended to enable customers to obtain
services at a selected time and place.
3 The actual target for the Tier 1 ratio
is higher than the formal target, owing
in part to developments relating to
Basel III.
Focus on food and agri at international level
Rabobank International will focus more on the core activities of Rabobank Group. In the
Netherlands, this means supporting the Group's ambition to become the biggest and most
important business bank in the country. Elsewhere, Rabobank International will continue to
focus on the food and agri sector. Rabobank has been the market leader in the Dutch
agricultural sector for many years, and it continued to hold a high market share in 2011
14
Annual Report 2011 Rabobank Group
