Connecting with society
Community sponsorship (in millions of euros)
to improve the financial position of clients, enabling the clients to no longer be considered
non-performing accounts. Expectations are that, initially, the portfolio of non-performing loans
will continue to grow in 2012, but this negative trend may change by the end of 2012.
Retail clients in financial difficulties
A small but growing number of people are no longer able to make mortgage payments.
Many of these people own two homes and therefore have double housing costs; others are
going through a divorce. According to media reports, more and more people are experiencing
financial difficulties and a large number of houses are awaiting foreclosure. The situation
Rabobank is seeing among its own clients is, however, much less clear-cut. The total number
of clients in financial difficulties (non-performing accounts) has risen by 14% since 2008 as a
result of economic developments. That said, Rabobank has noticed that such cases are
becoming more complex. An increasing number of customers have more than one creditor,
whereas in the past their only loan was their mortgage. As a result of this and the situation on
the housing market, it is taking longer on average to resolve payment problems. However,
despite what one might expect of a bank with a 26.2% share of the mortgage market,
Rabobank was involved in only 9% of foreclosures in 2011. In this way, Rabobank's policy of
standing by clients even when times are tough is being put into practice. Some 90% of clients
who run into difficulties no longer have payment arrears several months down the line.
4 The local Rabobanks'Cooperative
Fund makes contributions to Rabobank
Foundation. Their contributions were
not disclosed correctly in prior-year
reported information, as the
Cooperation Fund's expenditures were
presented as income for Rabobank
Foundation. To prevent double-
counting in the total amount of
cooperative dividend, the contribution
from the Cooperative Fund to
Rabobank Foundation is excluded from
the figures. Comparative figures have
been restated.
Cooperative dividend
In addition to offering financial services, Rabobank is committed to investing in local
communities and in a more sustainable society. It does this in different ways, e.g. by supporting
employees who take responsibility for their community, in particular those involved in local
projects and bodies, by drawing attention to issues through its media, and by associating its
name with particular issues. The bank also distributes a portion of its profit in the form of
cooperative dividend, through local Rabobanks acting in close consultation with their members
and by national community funds, donations and sponsorship of community initiatives. In 2011,
EUR 60.2 (55.9) million was made available in the way of cooperative dividend.
Cooperative dividend (in millions of euros)
2011
2010
2009
2008
Cooperative funds (local Rabobanks)
37.0
28.3
25.8
20.4
Donations by Rabobank Nederland and other group entities
5.2
4.2
3.3
3.8
Rabobank Foundation (in and outside the Netherlands)4
15.7
21.7
18.7
11.3
Project Fund
1.1
0.9
0.8
3.7
Award money Flerman Wijffels Innovation Award
0.1
0.1
0.1
0.1
Share4More
1.1
0.7
0.3
0.3
Total cooperative dividend
60.2
55.9
49.0
39.6
2011
2010
2009
2008
Rabobank Nederland, Communications department
25.1
24.1
22.6
21.4
Rabobank International and other group entities
9.7
11.8
10.9
16.4
Local Rabobanks
27.0
24.1
24.5
28.0
Total community sponsorship
61.8
60.0
58.0
65.8
All local Rabobanks provide support, in conjunction with members, to many social, economic,
sustainable and cultural projects aimed at improving society. Besides financial support, this
primarily comes in the form of expertise, networks, and work done by employees. In 2011, local
Rabobanks spent EUR 29.7 (23.2) million from their cooperative funds on supporting local
community projects. In addition, EUR 7.3 (5.1) million was contributed to Rabobank Foundation.
21
Strategic Framework Cooperative identity