Home > Solid global financial results reinforce strength of local Rabobank operations – CEO

Solid global financial results reinforce strength of local Rabobank operations – CEO

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article image Rabobank Australia & New Zealand CEO, Bruce Dick

Solid financial results reported by the global Rabobank Group reinforce the bank’s strong position in the Australian and New Zealand markets, Rabobank Australia & New Zealand CEO Bruce Dick said today.

Speaking at a local presentation of the global Rabobank Group’s just-released 2008 results, Mr Dick said the bank’s international performance was positive and reassuring news in the extremely difficult current economic environment. The global Rabobank Group was also this month reaffirmed among the top five safest banks in the world by Global Finance magazine.

“These financial results reinforce Rabobank’s enviably solid, stable position in the global financial sector,” he said. “This provides strong support for the ongoing growth and development of the bank’s businesses in Australia and New Zealand.

”Despite the global financial turmoil, the Rabobank Group reported a net profit rise of 2% to EUR 2.8 billion ($A5.5 billion/$NZ7.0 billion).

“While this represents more subdued growth than in recent years, it is a very strong performance in extraordinarily challenging economic conditions,” Mr Dick said.

Tier 1 capital ratio – a key measure of financial strength – was at a very healthy 12.7%, above the targeted 12.5%.

Income rose 6% to EUR 11.5 billion, while total assets climbed 7% to EUR 612 billion.

The global Rabobank Group was not, however, unscathed by the global financial crisis, with the ongoing turbulence in the financial markets having a negative effect of EUR 1.2 billion (A$2.3 billion/NZ$3.0 billion) on net profit. This was however countered by positive results in other areas.

Mr Dick said the overall positive financial results – in such a challenging operating year – were testament to Rabobank’s client-focused approach and its prudent risk management.

“In difficult times like these, the benefits of a cooperative bank, focused on supporting our clients and on safety and security, come to the fore,” he said.

Mr Dick said the results reinforced the strength behind the local operations of Rabobank in Australia and New Zealand, which provides financial services to rural and corporate agribusinesses as well as online savings and investments through its RaboPlus businesses.

“These results demonstrate the strength and security of the group behind our operations here,” he said.

“This is obviously important as it enables us to continue to support the rural sector with their financial requirements and to deliver superior investment and deposit offerings through RaboPlus.

”Mr Dick said the bank continued to perform very well in the Australian and New Zealand markets and remained fully committed to growing its operations in this region.

“Of course there will be challenges for everyone in this environment, but we are very confident in the fundamental strength and positive outlook of the agricultural sectors in both countries and equally we believe our unique product offering and global strength will enable the RaboPlus businesses to thrive,” he said.

The global Rabobank Group was this month reaffirmed among the top five safest banks in the world, in a mid-year update of its annual Safest Banks listing by Global Finance magazine.

The list is selected through a comparison of the long-term credit ratings and total assets of the 500 largest banks around the world. Ratings from Moody’s, Standard & Poor’s and Fitch are used.

In announcing the list, Global Finance magazine said: “the rating agencies have determined these banks have demonstrated a more prudent and sustainable approach to risk than their peers. More than ever customers all around the world are viewing long-term credit worthiness as the key feature of the banks with which they do business”.

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