Strong global results reinforce local expansion

Strong global results reinforce expanding local Rabobank operations – CEO

Strong global financial results reported by the Rabobank Group reinforce the bank’s continuing expansion in the New Zealand and Australian markets, Rabobank Australia & New Zealand CEO Thos Gieskes said today.

Speaking at a local presentation of the global Rabobank Group’s recently-released 2009 results, Mr Gieskes said the bank had recorded a solid financial performance in an extremely challenging year.

“While the credit crisis and the global economic downturn that followed had a major impact on the financial sector, it is testament to the enviable strength and stability of the Rabobank Group that the bank maintained its robust capital position and achieved a very respectable profit result,” he said.

“This strong financial status ensures the bank remains in an excellent position to pursue its ongoing expansion strategy in the New Zealand and Australian rural lending and food and agribusiness banking markets.”

The Rabobank Group, the world’s leading food and agribusiness banking specialist, reported a net profit of EUR 2.3 billion for the year to December 31, 2009, with equity up 14 per cent to EUR 38 billion. Tier 1 capital – a key measure of financial strength – was up 1.1 percentage points to 13.8 per cent.

Mr Gieskes said Rabobank – which is among the leading lenders to New Zealand and Australian farmers and food and agribusiness industries – had a strong, long-term commitment to growing its operations in both countries. This included its successful RaboPlus online deposits and managed funds business.

“We have experienced strong business growth in New Zealand and Australia in recent years and we very much retain the ambition to continue building our lending to quality primary producers and agribusinesses and increasing our market share in both countries,” he said.

Mr Gieskes said it was the bank’s view that the agricultural and food and agribusiness sectors in this region had a very strong long-term outlook.

“Certainly there are short-term challenges for some agricultural commodities including market volatility, but overall these sectors of the economy are very well positioned to grow and prosper in the future through a focus on sustainable production growth and maintaining the highest standards of food quality and safety for discerning international markets,” he said.

In addition, Mr Gieskes said the bank would continue to pursue a growth strategy for its RaboPlus businesses in New Zealand and Australia.

Mr Gieskes said the Rabobank Group’s solid global results demonstrated the strength and security-focussed approach of the international parent behind the local Rabobank operations.

“ Rabobank’s cooperative structure is focussed on supporting our clients and ensuring prudent risk management with the emphasis on safety and security,” he said.

However, Mr Gieskes said, the bank did not escape unscathed from the consequences of the global financial crisis. Net profit was down on the previous year, due to poor global economic conditions and increased provisions for bad and doubtful debts.

Locally, he said, business demand was still strong in New Zealand and Australia, with the business growing strongly in both markets.

Rabobank Australia & New Zealand is a part of the international Rabobank Group, the world’s leading specialist in food and agribusiness banking. Rabobank has more than 110 years’ experience providing customised banking and finance solutions to businesses involved in all aspects of food and agribusiness. Rabobank is structured as a cooperative and operates in 46 countries, servicing the needs of more than nine million clients worldwide through a network of more than 1600 offices and branches. Rabobank Australia & New Zealand is one of Australasia’s leading rural lenders and a significant provider of business and corporate banking and financial services to the region’s food and agribusiness sector. The bank has 83 branches throughout Australia and New Zealand.

ENDS

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