Global Financial Markets, Corporate Finance and Trade Commodity Finance
International rural and retail banking
Our international rural and retail banking division focuses on funding agricultural businesses
and on community banking. The loan portfolio of the rural and retail banking division grew
by 8% to reach EUR 38.6 (35.8) billion. These loans accounted for 36% (34%) of Rabobank
International's total lending. Most of these rural and retail loans were issued to customers in
Australia and New Zealand, where Rabobank has had a strong presence for years. This portfolio
grew by 6%, reaching EUR 15.9 (14.9) billion. In the United States, the Rabobank N.A. community
bank provides services to both agricultural and retail customers, with Rabo AgriFinance
focusing exclusively on the agri segment. The growth in the agricultural sector in these areas
contributed to the 11% increase in the portfolio in the Americas to EUR 13.1 (11.8) billion.
Rabobank made a bid for all outstanding shares in Bank BGZ, a Polish retail bank, in 2012.
The purpose of the bid was to acquire at least 75% of the shares. After completion of the bid,
Rabobank's equity interest in the bank rose from 60% to 98%, which implies that Rabobank
now has full control of Bank BGZ. Rabobank plans for Bank BGZ to grow, particularly in loans
to agricultural businesses and the food industry. Bank BGZ's loan portfolio saw a 22% increase
in 2012, rising to EUR 6.6 (5.4) billion.
The economic situation in Ireland continued to be cause for concern. Many customers
suffered the consequences of tax hikes, government cuts and a weak property market.
Rabobank was forced to form additional allowances as a result. ACC Bank's retail portfolio
stood at EUR 3.1 (3.7) billion.
RaboDirect more important as a funding base
Rabobank opened RaboDirect Germany, its sixth foreign online bank, in 2012. A bank's
security and reliability are decisive success factors in the German market. Rabobank wants
to stand out in this market for its cooperative background and its robust financial position.
The German savings market is a logical step in the growth plans of RaboDirect. RaboDirect
Germany attracted 83,000 customers who raised EUR 2.8 billion in savings deposits in just six
months'time. Polish online bank BGZ Optima has shown steady growth since it first opened
for business in 2011 and Rabobank's largest and first online bank in Belgium also turned in
considerably higher earnings. Its savings deposits rose by more than 36% in 2012, the year in
which it celebrated its tenth anniversary. Overall, the foreign online banks held EUR 24.2 (16.4)
billion in savings deposits at year-end 2012. The total number of International Direct Banking
customers was up 42% in 2012, rising to 670,000 (472,000).
Savings deposits from the RaboDirect activities are used to fund loans issued by the
international rural and retail banking business and for other divisions of Rabobank Group.
In keeping with the Strategic Framework 2013-2016, Rabobank wants to broaden its funding
base by attracting savings deposits from Dutch as well as foreign customers. This will make
the bank less reliant on external funding. As the RaboDirect savings deposits now account for
about 16% (12%) of savings deposits at group level, they make a valuable contribution to the
broadening of the funding base.
Trade Commodity Finance (TCF) provides services to customers in the international trade in
physical commodities. It leverages its knowledge of the commodities market and the related
financial products to the benefit of Dutch customers and international food and agri
customers, and to that of customers operating in the energy and metal sectors. TCF again
experienced growth in 2012 thanks to relatively high commodity prices and the diminished
activity of some other banks. TCF has a leading position in global trade finance in the
agricultural segment. Both the quality and the quantity of TCF's portfolio have improved over
recent years. In addition, Rabobank was recognised as a major player in international trade
finance by being elected as the 'Best Soft Commodities Bank' by the readers of Euromoney, a
trade finance magazine.
GFM offers customers a wide range of global financial market products, some of which are
aimed at improving its customers' risk management systems. GFM also assists businesses that
want to raise their own funding on the financial markets. Equity Capital Markets advises
businesses and helps them to improve their equity position, and Client Structured Products
offers customer-focused investment solutions to private banks and other financial institutions.
GFM also plays an important role in Rabobank Group's balance sheet management.
The Corporate Finance department made a particular success of its increased strategic focus
on the service provision to wholesale food and agri customers.
45 Leading food and agri bank at international level
