P»et Moerland Chairman of
the Execut we Board of
Rabobank Nederland
the food and agribusiness internationally. In addition, our online savings banks
experienced strong growth outside the Netherlands in the year under review.
After having launched RaboDirect in Germany, we now have online savings
ba nks in six countries. We made a successful bid for the remaining shares in
Polish Bank BGZ.
Despite the poor economy, De Lage Landen had a successful year that brought
significantly higher earnings than in 2011Robeco delivered an excellent
performance in the asset management business. The stock markets did well in
2012 and many new assets found their way to our asset management business.
The strategic options for Robeco were explored in 2012, resulting in the sale of
our asset management subsidiary to Orix in February 2013. The sale of Sarasin
was finalised in July 2012.
Challenging outlook for 2013
2013 will be another difficult year with very little economic growth. Structural reform will be
the adage both in the Netherlands and in the rest of Europe. The measures implemented by
the Dutch government, including cuts in government spending and tax increases, will not go
unnoticed. The unemployment rate is set to rise a nd the purchasing power of households will
continue to drop. In addition, uncertainty about the economic future is causing many
households to keep a tight hold on their expenditures. Also new rules will force households to
apply a larger share of their income towards mortgage debt repayments. The corporate sector
will continue to be wry reluctant about investing.
Competition in the savings market will remain fierce in 2013. Although the outlook for the
housing market is better in the long run, it will take at least until 2014 before we will see true
recovery. Cost reduction will continue to be a priority for Rabobank. Combined with the
resolution levy, the continually high pressure on the organisation to comply with rules and
regulations, and large groups of customers experiencing financial difficulties, the conclusion is
crystal-clean it will be difficult to match the performance we delivered in 2012.
Rabobank in 2016
We also foresee great challenges looking beyond next year. The strategy for the period
2013-2016 is designed to guarantee that we continue to be the robust and strong bank that we
are now: nearby, visible and committed on the outside, and smart and efficient on the inside.
Rooted in our cooperative mission, we will continue to stand out in the area of sustainable
and responsible business and banking practices, and to invest in an ongoing dialogue with
different stakeholders. For this reason, we will define concrete, socially relevant sustainability
targets and measurable indicators shortly. The world is facing massive challenges such as the
future of the food supply and the sustainable management of natural resources. In view of
these developments, we promise not to lose sight of our responsibility in the global food
chains in the years a head.
Our environment is changing dramatically. Customers have an increasing need for simple and
transparent financial services, and round-the-clock access to their bank. Private individuals,
private banking clients and businesses demand multi-channel, virtual and bespoke services.
The trend of rising costs needs to be stopped for us to be able to maintain our robust
position. That is why Rabobank is working on streamlining processes, simplifying the product
range and increasing the self-serve offering via online and mobile services. This will initially
come with large investments in systems and processes after which the new strategy should
lead to major cost cuts, substantial job losses and a considerable reduction in the number of
branches in the domestic retail banking division. We expect to cut 3,000 jobs at the local
Rabobanks in 2013 and 2014, with further effects in subsequent years. We also need to scale
down our excellent pay-and-benefits package. Although Rabobank will look different in 2016,
we will still be the same cooperative, robust and sustainable bank that we have always been
for our customers.
Piet Moerland,
Chairman of the Executive Board of Rabobank Nederland
3 Chairmaniforewofd
