Broad range of services in
the Netherlands
Stable results with limited growth in loan portfolio
www.rabobank.nl,www.obvion.nl,www.achmea.com
Although 2011 was off to a promising start, the economy began to slump later in
the year. Falling consumer and producer confidence weighed down the demand
for loans. As a result, private sector loan portfolio saw an increase of just 3%, rising
to EUR 295.8 billion. Fewer new mortgages were sold due to the poor market.
Rabobank did not sell as many mortgages either but the drop was less steep than
for others. These developments caused our share of the Dutch mortgage market
to go up by a mere 2.7 percentage points, landing at 31.7%. We also achieved
further growth in the wholesale market, while retaining our marketshares of the
agricultural and savings markets. Margins on savings deposits were down.
At EUR 1,853 million, the net profit posted by the local Rabobanks and Obvion was
virtually the same as for 2010 despite the economic decline. The poor economy
caused value adjustments to rise by 81%, mounting to EUR 648 million.This
corresponds to 22 basis points of average lending, which is above the long-term
average. At domestic retail banking, amounts due to customers rose by 4% to
EUR 200.1 billion.
Strategy for domestic retail banking
Rabobank Group's ambition is to achieve market leadership in all segments of the Dutch market.
Domestic retail banking contributes fully to this ambition by offering a comprehensive range of
financial products and services. Rabobank Group has a leading position in the Dutch mortgage
and savings market, the market for trade, industry and services (TIS) and the agricultural sector.
Rabobank serves the mortgage market with the local Rabobanks and mortgage business
Obvion. Rabobank's equity interest in Achmea B.V., formerly called Eureko, was reduced from
31% to 29% in 2011. In the Netherlands, Achmea is a prominent player across the insurance
market, operating labels such as Interpolis. As a primary supplier of customers of the local
Rabobanks, Interpolis offers a comprehensive range of insurance products and services for the
retail mass market and SMEs. Rabobank aspires to achieve profitable growth in the insurance
market. In 2011, we realised our goal of becoming market leader in wholesale banking.
Rabobank has traditionally had a unique connection with the agricultural sector, serving this
sector as a financier, sparring partner and centre of expertise. Rabobank is committed to
maintain this position.
Responsible banking at Rabobank
In its retail services, Rabobank has identified the following four themes in relation to responsible
and sustainable banking:
- accessibility for vulnerable groups: everyone should be able to handle their banking matters
independently;
- prevention of financial problems and guidance for consumers in financial difficulties;
- transparency: offering fair, straightforward products, and clearly communicating the related
costs, returns and potential risks;
- sustainable services: encouraging clients to be more aware of their consumption of energy
and natural resources, and to use them more efficiently.
26
Annual Report 2011 Rabobank Group
