Leading food and agri bank at
international level
Leading wholesale bank in the Netherlands and strong
growth in Direct Banking
www. ra bo ba n k.co m
After the recovery in 2010, economic growth came to a standstill particularly in
the second half of 2011Rabobank International's loan portfolio grew by 8% to
EUR 106.6 billion despite the global trend of businesses wanting to reduce their
debt positions. The share of food and agri in the portfolio rose by 3.2 percentage
points to 47.7%. We managed to bolster the bank's funding position because of a
considerable increase in Direct Banking operations, where savings deposits were
up 41%, rising to EUR 16.4 billion. Operating profit fell by 5% on 2010, which was
due in particular to lower margins on loans and higher costs associated with raising
savings deposits. The rise in operating expenses was caused also by expenditures
on the foreign branch network and the operational platform, and an increase in
employee base. Value adjustments were up 15%, rising to EUR 686 million; at 73
basis points of average lending, they were above the long-term average of 54 basis
points. Net profit from wholesale banking and international retail banking stood
at EUR 781 million. Thanks to the wholesale operations that were initiated in 2010,
we became the leading bank for Dutch wholesale clients in the Netherlands in
2011More and more businesses in the mid-corporate segment consider Rabobank
as their company bank, while Rabobank became the preferred bank in the market
for large corporates. In an international context, Rabobank is recognised as a
leading food and agri bank. Our world-wide focus on key food and agri sectors is
beginning to pay out. We are increasingly involved in cross-border transactions
because of better leveraging of our extensive global network.
Rabo Development holds non-controlling interests in seven partner banks
employing more than 20,000 people. In 2011, this division explored options for
collaborating with banks in East and South Africa, and Southeast Asia.
Strategy for Rabobank International
Rabobank International's strategy focuses on providing a broad range of services in the
Netherlands and on serving the food and agri sector internationally.The strategy rests on
three pillars:
1market leadership in the Netherlands;
2. recognition as the global food and agri bank; and
3. leveraging of specialist knowledge and products.
The underlying principle of our strategy is to build long-term relationships with clients. In the
Dutch wholesale market, Rabobank International supports the local Rabobanks in their service
provision to wholesale clients. Rabobank International serves the top players in the Dutch
corporate market itself. Opportunities were seized in this market in 2011 to broaden our
service provision to corporate clients and to further increase the number of these clients.
In an international context, wholesale banking focuses on the food and agribusiness sector.
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Annual Report 2011 Rabobank Group
