Broad range of services in
the Netherlands
Higher value adjustments and limited growth in lending
Tax increases and government spending cuts were
implemented in the Netherlands in 2012. Consumers lost
their confidence due, in part, to the rising unemployment
rate. Producer confidence was low too, which put pressure
on business investments. These developments affected
earnings from domestic retail banking. Bad debt costs
rose to EUR 1,329 million, which corresponds to 44 basis
points of average lending. This is reflective of the fact
that many customers are going through difficult times.
As a cooperative bank, Rabobank is doing its utmost,
where possible and appropriate, to help its customers
to weather the economic storms.
-30%
Strategy for domestic retail banking
Integration of Friesland Bank
www.rabobank.nl,www.obvion.nl,www.frieslandbank.nl
Net profit
in millions of euros
1,853
1,304
2011
2012
The private sector loan portfolio rose by 4% to reach EUR 306.5 billion and the share of the
savings market saw limited growth thanks, in particular, to the acquisition of Friesland Bank.
Amounts due to customers were up 7% to EUR 213.9 billion. The shares of the wholesale and
TIS markets were more or less stable. Rabobank's share of the mortgage market experienced
a limited drop. Net profit from domestic retail banking was down 30%, falling to EUR 1,304
million, as a result of higher value adjustments and, to a lesser extent, lower margins on savings.
Rabobank is a cooperative that puts the customer's interests first and treats customers fairly.
Customers should be able to come to Rabobank for any mainstream financial products and
services. With regard to the Netherlands, Rabobank has the ambition of being the market
leader, which will put us in a strong position to offer customers product excellence. Modern
distribution channels such as the Internet and mobile phone technology are increasingly
important in our service provision. The local Rabobanks are trying to consolidate and shore
up their position, particularly in the higher segments of the retail and wholesale markets, and
in metropolitan areas. Treating our customers fairly is the main priority in our service provision.
The Friesland Bank operations were transferred to Rabobank Group early in 2012.
The requirements of banks'financial buffers have become more stringent because of the
financial crisis. As it was difficult for Friesland Bank to continue to meet these requirements,
it opted to merge with Rabobank. Friesland Bank and Rabobank have the same cooperative
roots; both banks value their local presence and seek to build long-term customer relationships.
These similarities in client services facilitate the consolidation process. Where possible,
Rabobank endeavours to provide services to Friesland Bank customers that are satisfactory
to them. Except for continuing the service provision to customers, much attention is being
directed at the Friesland Bank employees, all of whom should have been presented with a
suitable offer by 1 April 2014. In this context, the unions agreed to the redundancy plan for
Friesland Bank late in 2012.
33 Broad range of services in the Netherlands
