Rabobank, Henk Adams IYC Regional Conference PPT 際際滷s
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The document discusses the history and resilience of Rabobank, a large Dutch bank. It describes how Rabobank originated in the late 1800s from the merger of two cooperative banking groups and has since grown significantly. Over the past 115 years, Rabobank has had positive financial results without paying dividends to members. It remains highly capitalized with a global presence and is consistently ranked among the safest banks in the world. The cooperative nature of the bank, with members owning local branches, has formed the basis of its long term success.
Rabobank, Henk Adams IYC Regional Conference PPT 際際滷s
- 1. A CO-OP BANKS RESILIENCE THROUGH CRISES Presentation by Henk Adams 3 October 2012 1 About Rabobank, 3 Oct. 2012
- 2. INTRODUCTION TO RABOBANK 2 About Rabobank, 3 Oct. 2012
- 3. Working for people, by people 3 About Rabobank, 3 Oct. 2012
- 4. Our logo signifies People are core for us For: Our staff Our customers Our stakeholders 4 About Rabobank, 3 Oct. 2012
- 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 Turkey 5 About Rabobank, 3 Oct. 2012
- 6. The Netherlands A Land Of Water: 1/3 Below Sea Level 6 About Rabobank, 3 Oct. 2012
- 7. The Netherlands: A Land of High Quality Agriculture Agriculture accounts for 10% of Dutch national product Worlds biggest producer of cut flowers Europes vegetable garden 3rd biggest agricultural exporter in the world! 7 About Rabobank, 3 Oct. 2012
- 8. RABOBANK IS A STRONG, SUCCESSFUL BANK.. 8 About Rabobank, 3 Oct. 2012
- 9. Rabobank is the 2nd largest association in the Netherlands with nearly 1.9 million members x 1,000 members 9 About Rabobank, 3 Oct. 2012
- 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% 10 10 About Rabobank, 3 Oct. 2012
- 11. 47 countries a global spread of 766 foreign branches activities, of which appr. 600 retail branches 11 About Rabobank, 3 Oct. 2012
- 12. after more than 115 years of positive results (and not paying dividends) 12 About Rabobank, 3 Oct. 2012
- 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% Member 12% Certificates 10% 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. 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. Z端rcher Kantonalbank Switzerland 4. Landwirtschaftliche Rentenbank Germany Landeskreditbank Baden-W端rttemberg - 5. Germany F旦rderbank Worlds 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 dEpargne de lEtat 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. THE BASIS OF THIS SUCCESS IS THE COOPERATIVE NATURE 15 About Rabobank, 3 Oct. 2012
- 16. To understand Rabobank 2012, it is good to go back to where it all started 1895 - 1898 First Cooperative Banks founded in the Netherlands inspired by the initiative of Mr. Raiffeisen in Germany Dignitaries 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 capital 16 16 About Rabobank, 3 Oct. 2012
- 17. 1898 Establishment 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. 1898 1972 Successful growth and mitigation in liability Successful 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. 1965-1972 Increased competition between the two groups on local and central level 1970-1972 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 liability 19 About Rabobank, 3 Oct. 2012
- 20. 1972 Merger 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 offices 20 About Rabobank, 3 Oct. 2012
- 21. And with a unique Autonomous local banks are liable for each others 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 Banks 21 About Rabobank, 3 Oct. 2012
- 22. 2012:Members and autonomous local bank 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, mortgages 22 About Rabobank, 3 Oct. 2012
- 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 Bank 2 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 delegates 48 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. 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 members 24 About Rabobank, 3 Oct. 2012
- 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 customers 25 About Rabobank, 3 Oct. 2012
- 26. Re-defined strategy: Balance between being social and being commercial Defined by: Core Objectives Core CSR Values 26 About Rabobank, 3 Oct. 2012
- 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 growth 27 About Rabobank, 3 Oct. 2012
- 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 bank 28 About Rabobank, 3 Oct. 2012
- 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 energy 29 About Rabobank, 3 Oct. 2012
- 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. 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 creditworthiness 31 About Rabobank, 3 Oct. 2012
- 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
Editor's Notes
- #5: S-N = 22.5 KM
- #11: In 2011, Rabobank became market leader in wholesale segmentTIS = team work between local Rabobanks and Rabobank InternationalAs per June 2012:853 branches2898 ATMs
- #15: 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 magazines Worlds 50 Safest Banks list