Chairman's foreword
Satisfactory results in uncertain market conditions
The Dutch economy saw limited growth in 2011, and growth is expected to slow
down further in 2012. Consumer and business confidence is not expected to
recover in the near future. Employment trends are uncertain, additional cuts in
government spending are likely, and pension benefits are under pressure.
The state of the housing market continues to be worrying. Reforming the Dutch
housing market should be a top priority, which could provide a significant boost
to the recovery of consumer confidence and a pick-up in economic growth.
Rabobank is the Dutch mortgage market leader, and during the year under review
it presented an integrated plan for reforming the Dutch market for owner-
occupied and rented residential properties.
The cooperative structure and attitude, and the pursuit of sustainable development, constitute
the basis of our organisation and put us in a position to withstand difficult economic
conditions. We support the initiative of the United Nations to make 2012 the International Year
of Cooperatives. In 2012, Rabobank intends to highlight the features of the cooperative more.
Now, more than ever, it is important to show how we as a cooperative differ from other
business models. The interest of the customer form the principal starting point for the services
we provide in the Netherlands and other countries. They have always been leading, based on
Rabobank's cooperative view of establishing ties with our members and customers. We are
contributing to more sustainable food chains and, as a partner for the International Year of
Cooperatives, we plan to help the UN accomplish its goals: to increase public awareness about
cooperatives and to promote the sustainable growth of cooperatives around the world.
From a financial perspective, Rabobank Group had a satisfactory year. Net profit in 2011
amounted to EUR 2.6 billion, which is a satisfying result given the difficult market.The European
debt crisis and the failure to find an adequate solution fuelled the persistent turmoil on the
financial markets. Consumer and business confidence suffered severely as a consequence,
as did mutual confidence between banks. In the harsh economic climate, amounts due to
customers increased considerably and the loan portfolio grew, albeit to a limited extent.
The downturn in the economic recovery in the second half of 2011 led to a 30% rise in value
adjustments. Our 46% equity interest in Swiss private bank Sarasin was sold in the year under
review, enabling us to focus even more effectively on our strategic core business. The closing
will take place in 2012.
Our financial results are due primarily to the confidence shown by our customers and the
efforts made by our 59,670 employees. During the year under review, we continued to simplify
our product range. Our mortgages, payment platforms, consumer loan products, savings
products and investment products have been made clearer for customers, and in many cases
more affordable, too. Thanks to our culture and our approach, Rabobank has always had high
levels of customer satisfaction.
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Annual Report 2011 Rabobank Group