Rabobank Nederland - Robeco.com

• Rabobank Development Programme
Complementary to the successful activities of the Rabobank Foundation, which started 30 years
ago, the Rabobank Development Programme (RDP) was established. The RDP’s aim is to help a
number of banks in developing countries grow into successful ‘Rabobanks’. During the next few
years, its activities will be focused on five countries, including China and a number of countries
in East Africa.
Strategy of the subsidiaries
Rabobank Group’s Dutch subsidiaries play an important part in achieving the Group’s market
leadership ambitions. In five years from now, the target is to double their net profit and to achieve/maintain
leading market positions.
Organisational and financial implications
Rabobank Group’s strategic ambitions have been embedded in a cooperative, high-quality and
sustainability-driven organisation.
• Strengthening the cooperative identity
The cooperative is and remains Rabobank’s cornerstone. The local cooperative Rabobanks and
their central cooperative Rabobank Nederland, which is also the holding company of the Group’s
subsidiaries, are and will continue to be managed in accordance with the cooperative model.
• High-quality policy for Human Resource Management (HRM)
The quality of our people is of paramount importance to our strategy. The priority in HRM policy
is to secure the required calibre of talented, highly educated staff and managers.
• Sustainability
Rabobank aims at building on its strong position in sustainability and corporate social
responsibility (CSR). It is working towards more CSR criteria in all banking operations, more
sustainable financial products such as green financing and green investments, and more deeply
embedding sustainable development in its operations.
Ambitious financial targets
Rabobank Group maintains the following financial targets:
• Annual net profit growth of at least 12%;
• A Tier I ratio of at least 10.0 per annum;
• Return on equity of at least 10.0% per annum.
Business Activities of the Rabobank Group
Domestic Retail Banking
Our Domestic Retail Banking operations are primarily undertaken by the local Rabobanks and Obvion.
Our Domestic Retail Banking operations include making loans, taking deposits and providing fund transfers
and non-credit service operations, primarily in the Netherlands. Each of the local Rabobanks provides credit
and deposit services. In keeping with the Allfinanz concept, each of the local Rabobanks distributes
insurance products and also provides, either directly or through the Rabobank Group’s specialised
subsidiaries, investment and a wide variety of other services to customers in the local Rabobank’s specific
geographical business area. Obvion provides mortgages finances and operates through independent
agents. Obvion is a joint venture between Rabobank Group and Algemeen Burgelijk Pensioenfonds.
At December 31, 2005 we had a 39% market share in the Dutch savings market. For the year ended
December 31, 2005, our Domestic Retail Banking operations accounted for 58%, or € 5,431 million, of our
total income and 57%, or € 1,521 million, of our operating profit before taxation. At December 31, 2005,
our Domestic Retail Banking operations employed 28,909 full-time equivalent employees.
The Dutch mortgage loan market is a highly competitive market. Driven by the tax deductibility of
mortgage loan interest payments, Dutch homeowners usually take out relatively high mortgage loans. This
does not necessarily indicate a high risk for banks with mortgage lending operations. We have a balanced
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