A CO-OP BANK’S RESILIENCETHROUGH CRISESPresentation byHenk Adams3 October 20121                       About Rabobank, 3 Oc...
INTRODUCTION TO       RABOBANK2                 About Rabobank, 3 Oct. 2012
Working for people, by people3                             About Rabobank, 3 Oct. 2012
Our logo signifies          „People are core for us‟                         For:                         • Our staff     ...
Our Roots    Kingdom of the Netherlands                                                             Norway    • Length: N-...
The Netherlands    A Land Of Water: 1/3 Below Sea Level6                                   About Rabobank, 3 Oct. 2012
The Netherlands:    A Land of High Quality Agriculture    • Agriculture accounts for      10% of Dutch national      produ...
RABOBANK IS A STRONG,    SUCCESSFUL BANK…..8                           About Rabobank, 3 Oct. 2012
Rabobank is the 2nd largest association in theNetherlands with nearly 1.9 million members x 1,000 members 9               ...
…with an extensive network and high  market shares in the Netherlands, … -139 local banks  with 853 branches -Strong and s...
47 countries      …a global spread of   •                            •   766 foreign branches     activities, …           ...
…after more than 115 years of positive results (and not paying dividends)…12                                  About Raboba...
Rabobank has a strong capital position, … Capital ratios as at June 2012:                                 Capital EUR 45.2...
For over 10 years, Rabobank ranks among the Top-10 Safest Banks in the world                     1.    KfW                ...
THE BASIS OF THIS SUCCESS IS      THE COOPERATIVE NATURE15                          About Rabobank, 3 Oct. 2012
To understand Rabobank 2012,it is good to go back to where it all started1895 - 1898First Cooperative Banks founded in the...
1898Establishment of two separate cooperative banking groups: Raiffeisenbank, predominantly in the North and Boerenleenb...
1898 – 1972Successful growth and mitigation in liabilitySuccessful growth of:• Number and size of local banks and the two ...
1965-1972Increased competition between the two groups on local andcentral level1970-1972• Merger process of the  two Centr...
1972Merger into Rabobank                       • All RAiffeisen member banks and                         BOerenleenbank me...
And with a unique     •   Autonomous local banks are liable for                           each other‟s obligations (1st le...
2012:Members and autonomous localbank remain the basis of Rabobank            10 million clients           1.9 million mem...
Cooperative governance in 2012   1.9 mln members                               Local      Local        Local      Local   ...
History of membership policy 1896-1972     - Borrowers have to be member               - Unlimited member liability 1972-1...
PHILOSOPHY:“Imitating the competition is the most widespread disease in management”“Being different offers greater future ...
Re-defined strategy:Balance between being socialand being commercialDefined by:                Core              Objective...
STRATEGY FOR GROWTH:              “As large as is necessary,                as small as possible”                         ...
Strategic Core Objectives            Achieving all-finance market leadership in            the Netherlands            Exte...
Corporate Social Responsibility (CSR)            Core Objectives         Safe and sustainable food supply         Promotin...
Cooperative Banking in 2012     • Focus on customer interests:       Good products-appropriate advice - service excellence...
To summarize:     The cooperative nature of Rabobank did essentially not     change in more than 115 years and is the basi...
This cooperative nature,     combined with healthy results     and a strong balance sheet,     allows Rabobank to fulfill ...
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  • S-N = 22.5 KM
  • In 2011, Rabobank became market leader in wholesale segmentTIS = team work between local Rabobanks and Rabobank InternationalAs per June 2012:853 branches2898 ATMs
  • Rabobank is among the most highly rated banks in the world, ranked among the top 10 safest banks in the world for over 10 years in Global Finance magazine’s ‘World’s 50 Safest Banks’ list”
  • Rabobank, Henk Adams IYC Regional Conference PPT Slides

    1. 1. A CO-OP BANK’S RESILIENCETHROUGH CRISESPresentation byHenk Adams3 October 20121 About Rabobank, 3 Oct. 2012
    2. 2. INTRODUCTION TO RABOBANK2 About Rabobank, 3 Oct. 2012
    3. 3. Working for people, by people3 About Rabobank, 3 Oct. 2012
    4. 4. Our logo signifies „People are core for us‟ For: • Our staff • Our customers • Our stakeholders4 About Rabobank, 3 Oct. 2012
    5. 5. Our Roots Kingdom of the Netherlands Norway • Length: N-S +/- 300 KM Sweden • Width: E-W +/- 200 KM • Population: 17 million Denmark Latvia The Netherlands Lithuania Republic of Belarus Ireland United Kingdom Poland Germany Belgium Luxemburg Czech Rep. Ukraine Slovakia versus Singapore Austria Hungary France Switzerland Romania Croatia • E-W 42 KM Mont.. Serbia • S-N 22 KM Italy Bulgaria Spain Portugal Greece Turkey5 About Rabobank, 3 Oct. 2012
    6. 6. The Netherlands A Land Of Water: 1/3 Below Sea Level6 About Rabobank, 3 Oct. 2012
    7. 7. The Netherlands: A Land of High Quality Agriculture • Agriculture accounts for 10% of Dutch national product • World‟s biggest producer of cut flowers • Europe‟s vegetable garden • 3rd biggest agricultural exporter in the world!7 About Rabobank, 3 Oct. 2012
    8. 8. RABOBANK IS A STRONG, SUCCESSFUL BANK…..8 About Rabobank, 3 Oct. 2012
    9. 9. Rabobank is the 2nd largest association in theNetherlands with nearly 1.9 million members x 1,000 members 9 About Rabobank, 3 Oct. 2012
    10. 10. …with an extensive network and high market shares in the Netherlands, … -139 local banks with 853 branches -Strong and stable market shares: • Agriculture 84% • Savings 39% • Mortgages 28% • SME 43% 1010 About Rabobank, 3 Oct. 2012
    11. 11. 47 countries …a global spread of • • 766 foreign branches activities, … of which appr. 600 retail branches11 About Rabobank, 3 Oct. 2012
    12. 12. …after more than 115 years of positive results (and not paying dividends)…12 About Rabobank, 3 Oct. 2012
    13. 13. Rabobank has a strong capital position, … Capital ratios as at June 2012: Capital EUR 45.2 bln • Tier-1 ratio:16.9% Hybrid • Core Tier-1 ratio: 12.7% capital 18%18%16%14% Member12% Certificates10% 15% 8% Tier 1-ratio 6% Retained 4% Core Tier 1-ratio earnings 2% & minority 0% interests June 09 Dec. 09 June 10 Dec. 10 June 11 Jun-12 67%13 About Rabobank, 3 Oct. 2012
    14. 14. For over 10 years, Rabobank ranks among the Top-10 Safest Banks in the world 1. KfW Germany 2. Bank Nederlandse Gemeenten (BNG) Netherlands 3. Zürcher Kantonalbank Switzerland 4. Landwirtschaftliche Rentenbank Germany Landeskreditbank Baden-Württemberg - 5. Germany Förderbank“World‟s 50 Safest 6. Caisse des Depots et Consignations (CDC) France Banks‟ list”, 7. Nederlandse Waterschapsbank Netherlands Aug 2012 8. NRW.BANK Germany 9. Banque et Caisse d‟Epargne de l‟Etat Luxembourg 10. Rabobank Group Netherlands 11. TD Bank Group Canada 12. Bank of Nova Scotia Canada 13. DBS Bank Singapore 14. Oversea-Chinese Banking Corporation (OCBC) Singapore 15. United Overseas Bank Singapore 14 About Rabobank, 3 Oct. 2012
    15. 15. THE BASIS OF THIS SUCCESS IS THE COOPERATIVE NATURE15 About Rabobank, 3 Oct. 2012
    16. 16. To understand Rabobank 2012,it is good to go back to where it all started1895 - 1898First Cooperative Banks founded in the Netherlandsinspired by the initiative of Mr. Raiffeisen in GermanyDignitaries and wealthy farmers:• provided savings money and• helped managing the cooperative.Some became voluntary members.PRINCIPLES:• Obligatory membership for borrowers• Members fully liable for the entire debt of the cooperative Friedrich Wilhelm Raiffeisen,• No shareholding founder of the very first• No dividends agricultural co-operative bank in Germany.• Profits to be retained to build equity capital16 16 About Rabobank, 3 Oct. 2012
    17. 17. 1898Establishment of two separate cooperative banking groups: Raiffeisenbank, predominantly in the North and Boerenleenbank (Farmers‟ Credit Bank), in the South• Local banks had to pay up share capital in their Central Bank pro rata with their size• But still no shareholding by members in their local cooperative bank• No dividends to individual members• Profits retained to build equity 17 About Rabobank, 3 Oct. 2012
    18. 18. 1898 – 1972Successful growth and mitigation in liabilitySuccessful growth of:• Number and size of local banks and the two central organizations• Capital growth through retained earnings 18 About Rabobank, 3 Oct. 2012
    19. 19. 1965-1972Increased competition between the two groups on local andcentral level1970-1972• Merger process of the two Central Banks• Followed by mergers of (competing) local banks• Field of operation limited to designated local area• Limitation of member liability19 About Rabobank, 3 Oct. 2012
    20. 20. 1972Merger into Rabobank • All RAiffeisen member banks and BOerenleenbank member banks became member of the newly formed RABObank • 1,200 local cooperative member banks • 3,000 offices20 About Rabobank, 3 Oct. 2012
    21. 21. And with a unique • Autonomous local banks are liable for each other‟s obligations (1st level) Cross-Guarantee • Ensures intra-Group credit support (2nd level) • Rabobank Group is treated as a consolidated entity for regulatory, accounting and credit rating purposes. De Lage Landen Rabobank Schretlen Nederland Rabo Mortgage Local Rabobanks Banks21 About Rabobank, 3 Oct. 2012
    22. 22. 2012:Members and autonomous localbank remain the basis of Rabobank 10 million clients 1.9 million members 139 local cooperative Rabobanks 853 domestic branches Ownership and cross-guarantee Rabobank Nederland division: Rabobank International Specialised subsidiaries asset management, real estate, leasing, mortgages22 About Rabobank, 3 Oct. 2012
    23. 23. Cooperative governance in 2012 1.9 mln members Local Local Local Local Local Local 139 member banks Member Member Member Member Member Member Bank Bank Bank Bank Bank Bank2 delegates per bank: 1 member, 1 manager 12 region assemblies Regional Delegates Regional Delegates Regional Delegates meet every 3 months Assembly Assembly Assembly 6 delegates: 4 members, 2 managers Central Delegates Central Delegates Assembly Assembly (“Parliament”) 72 delegates48 members + 24 managers meet every 3 months General Assembly Supervisory Board Rabobank Nederland (elected) Executive Board Rabobank Nederland (appointed) 23 About Rabobank, 3 Oct. 2012
    24. 24. History of membership policy 1896-1972 - Borrowers have to be member - Unlimited member liability 1972-1982 - Limited member liability 1982 - Member liability waved 1982 - 2000 - No active recruitment of members 1995 - 2000 - Evaluation and revaluation of Cooperative values (The Cooperative Debate) From 2000 - Recruitment of „more members‟ From 2001 - Appreciation of more involved members24 About Rabobank, 3 Oct. 2012
    25. 25. PHILOSOPHY:“Imitating the competition is the most widespread disease in management”“Being different offers greater future prospects than being better” Michael Porter In short: members make the difference • Putting the cooperative philosophy into practice • Real involvement • Members are more loyal and better customers25 About Rabobank, 3 Oct. 2012
    26. 26. Re-defined strategy:Balance between being socialand being commercialDefined by: Core Objectives Core CSR Values26 About Rabobank, 3 Oct. 2012
    27. 27. STRATEGY FOR GROWTH: “As large as is necessary, as small as possible” meaning Size necessary to fulfill mission, while safeguarding the strength through controlled growth27 About Rabobank, 3 Oct. 2012
    28. 28. Strategic Core Objectives Achieving all-finance market leadership in the Netherlands Extending our position as a leading international food & agri bank Most sustainable, socially involved bank28 About Rabobank, 3 Oct. 2012
    29. 29. Corporate Social Responsibility (CSR) Core Objectives Safe and sustainable food supply Promoting economic participation and access to financial services Supporting community involvement Clean production methods and sustainable energy29 About Rabobank, 3 Oct. 2012
    30. 30. Cooperative Banking in 2012 • Focus on customer interests: Good products-appropriate advice - service excellence • Connect with society: Cooperative dividend - Community sponsorship • Connect with the future: Focus on young people – Innovations (Rabo Project Fund) with emphasis on long term sustainability • Rabobank Foundation: Supports disadvantaged people, domestically and abroad • Rabo Development: Non-controling investments in rural banks to support banking infrastructure in 7 developing countries.30 About Rabobank, 3 Oct. 2012
    31. 31. To summarize: The cooperative nature of Rabobank did essentially not change in more than 115 years and is the basis for: • A cohesive structure with a bottom-up decision making proces • a conservative strategy • a modest and selective growth • a modest target for return on equity • strong focus on long-term performance and long term relationships • strong capitalisation and • the highest possible level of creditworthiness31 About Rabobank, 3 Oct. 2012
    32. 32. This cooperative nature, combined with healthy results and a strong balance sheet, allows Rabobank to fulfill its mission as a social enterprise also for the future generation. Thank you !32 About Rabobank, 3 Oct. 2012
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