Rabo news https://www.rabobank.com/DotCom/Corporate/en/investors/irnews_research/rss.html Rabobank News https://www.rabobank.com/DotCom/Corporate/en/investors/irnews_research/rss.html https://www.rabobank.com/DotCom/Corporate/en/investors/irnews_research/rss.html Rabobank News en <![CDATA[Rabobank: EUR 1,698 million net profit in first half 2018]]> https://www.rabobank.com/en/investors/irnews_research/investor_news/2018/20180816-rabobank-eur-1-698-million-net-profit-in-first-half-2018.html
  • Upward trend in customer satisfaction for 3rd consecutive year.
  • Rabobank was named Industry Leader by Sustainalytics and was the highest scoring major Dutch bank in the latest Sustainable Brand Index.
  • Net profit EUR 1,698 million (+12%).
  • Negative impairment charges thanks to favorable economic developments and careful credit management.
  • Solid capital position: fully loaded common equity tier 1 ratio up from 15.5% to 15.8%.

In the first half of 2018 Rabobank posted a net profit of EUR 1,698 million, 12% more than in the first half of 2017. This result was underpinned by favorable economic conditions, which contributed to a net release in impairment charges. Income remained more or less stable and costs fell causing the cost/income ratio to improve. The private sector loan portfolio and the deposits from customers increased. Underlying profit before tax, adjusted for the impact of restructuring costs and fair value items, came out 2% higher. Rabobank's capital base is strong: the fully loaded common equity tier 1 ratio rose once again and now stands at 15.8%. The return on invested capital was 8.8%, exceeding the targeted 8.0% (1H 2017: 7.8%).

Chairman of the Managing Board Wiebe Draijer:

“We are on track with the implementation of our Strategic Framework for 2016-2020. We have achieved our goals in many areas. In line with our ambitions, we have improved our customer service and financial performance. We are dedicating great vigor to putting our mission of ‘Growing a better world together’ into practice. We want to ensure that we can build on this momentum in the coming years in a rapidly changing environment. Our employees are center stage in this process. They are the ones making our bank’s transition a reality, and we are deeply grateful for their efforts, especially given the scope and number of changes on the agenda within our organization this year.”

“Once again we have concentrated our efforts on improving our customer focus and making our cooperative bank more robust. Innovation and sustainability are our top priorities. Both in the Netherlands and abroad, our awareness-raising campaigns have focused on social issues like good financial health, the importance of growth for entrepreneurs, and reducing food waste. In addition, we invested great effort in improving sustainability throughout the food chain. Customers are rewarding our efforts with higher customer satisfaction scores, which is a great compliment for our employees.”

Read more

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Investor News Thu, 16 Aug 2018 14:42:59 GMT
<![CDATA[Rabobank upwardly adjusts its price forecast for the Dutch housing market: prices expected to rise 8.7% in 2018]]> https://www.rabobank.com/en/investors/irnews_research/investor_news/2018/20180815-rabobank-upwardly-adjusts-its-price-forecast-for-the-dutch-housing-market-prices-expected-to-rise-8-7-in-2018.html In the first half of 2018 Dutch homebuyers paid on average 8.9% more for owner-occupied homes than in the previous year. This is higher than expected because, among other reasons, overbidding has become much more widespread. Prices are now forecast to rise by 8.7% in 2018 as a whole, Rabobank economists write in their Dutch Housing Market Quarterly. They had previously predicted an 8.0% price hike. In contrast with prices, home sales are declining a tad quicker than previously anticipated.

Senior housing economist Christian Lennartz explains: ‘The current high prices for owner-occupied homes are undermining buyers’ confidence in the housing market. Consumers who feel it is an unfavourable time to buy a house now outweigh those that feel it is still a favourable time.’ He expects that such waning confidence, together with increasingly limited choice for both first-time and next-time buyers, will dampen sales activity. ‘For 2018 as a whole we expect around 225,000 transactions, compared to 2017’s 242,000’.

Scarcity of housing is one of the main drivers behind the current price boom in the Netherlands, and increasing construction is therefore one of the main goals of the government coalition. This is a tough challenge, Lennartz explains: ‘In the first half of this year the number of building permits issued has declined. At this rate the construction of new homes will keep lagging behind household growth.’

Read the full Dutch Housing Market Quarterly on https://economics.rabobank.com/

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Investor News Wed, 15 Aug 2018 12:01:13 GMT
<![CDATA[Rabobank Launches First Ever ESG leader Commercial Paper and Certificate of Deposit Programme]]> https://www.rabobank.com/en/investors/irnews_research/investor_news/2018/20180813-rabobank-launches-first-ever-esg.html PRESS RELEASE

Rabobank is the first issuer to launch an “ESG Leader” Commercial Paper and Certificate of Deposit Programme in the money market (the “ESG Leader Programme”). The ESG Leader Programme offers short term investments in Rabobank as a leader in environmental, social and governance (ESG) which may be labelled as ESG investments. This innovative ESG Programme is in line with Rabobank’s ongoing efforts in being at the forefront for a stronger and sustainable future. The ESG Leader Programme provides investors with more diversified investment opportunities and contributes to capital being channelled to more sustainably operating companies. 

Rabobank is the first company to launch such an ESG-labelled Programme as an ESG leader. The first launch that amounted to EUR 1.2 billion was highly successful in view of immediate acceptance by the buy-side market parties. The size of the program is EUR 5 billion maximum.  Rabobank may issue ESG Leader paper as long as it maintains its ESG Leader status as assessed by Sustainalytics.

Why has Rabobank launched this programme?

Robert Ruisch, head of Rabobank’s Commercial Paper and Certificates of Deposit Trading Desk, says: “We noticed that money markets did not yet offer products to responsible investors, which limits investors seeking both diversification of their investments and higher positive impacts of their investments. Our new programme opens the opportunities to do so for investors.” Frank Beset, head of Rabobank’s Treasury Liquidity Management: “The programme offers us the opportunity to diversify our funding instruments and cater specifically to the needs of responsible investors. Moreover, we want to be a first mover in responsible finance and investing products, just as we have been part of the launch of Green Bonds, Social Bonds, and Green Loans from their very start.”

What is an ESG Leader?

The ESG Leader classification of Rabobank is based on an independent assessment of our environmental, social and governance performance by Sustainalytics, a leading global provider of environmental, social and corporate governance (ESG) research and ratings. Sustainalytics provides research and ratings on 11,000 companies in terms of their ESG performance, and then ranks these companies relative to industry peers. Sustainalytics rates a company’s ESG performance on a 0 to 100 point scale. Companies who rank among the top 5% of their industry peers are classified as ESG Leaders within Sustainalytics’ coverage universe. Rabobank has a top 5% position in its industry.

What is the difference with other ESG-labelled financial market instruments?

In capital markets, where investments have a longer time horizon, bonds are deemed sustainable when they comply with market standards like the Green Bond Principles or Social Bond Principles, of which Rabobank is a founding member. A prime characteristic of the sustainable bond market is the focus on a sustainable use of proceeds: bond issuers are transparent about the projects and assets which are financed by the bond, and they disclose environmental or social benefits and impacts of those projects. This approach, however, is not fit for commercial papers and certificates of deposit, due to their short term nature: loans are redeemed by the issuer within a year and deposits are returned to the depositor within a year. Portfoliomanagement and reporting efforts would overburden these instruments. Loans may have already been redeemed or deposits have been returned to the depositor when the reports would become available. “Hence, we sought other ways to qualify these money market instruments in a robust way that provides trust to the investors that their money is invested with a company that is recognized as a leader for its environmental, social and governance performance, through independent,  rigorous and systematic research by Sustainalytics”, says Olaf Brugman, head of Rabobank’s Sustainable Markets Desk.

Financial Innovation

This first of its kind application of ESG research and ratings to money market instruments is made possible by the innovative power of Rabobank and the respected independence of Sustainalytics. Applying its ESG Leader classification, Rabobank is able to offer ESG-qualified short term money market investment opportunities to investors, in addition to offering access to longer term capital investments such as Green Bonds.

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Investor News Mon, 13 Aug 2018 10:00:00 GMT
<![CDATA[Rabobank: response to the Dutch Government’s intention to cancel tax deductibility of CoCo coupons]]> https://www.rabobank.com/en/investors/irnews_research/investor_news/2018/20180702-Rabobank-response-government-intention-to-cancel-tax-deductibility-of-coco-coupons.html Rabobank took notice of the letter to Parliament and the press release by the Dutch Ministry of Finance dated 29 June 2018, in which it is stated that the Dutch Government intends to cancel the tax deductibility of coupons paid by banks and insurance companies on Additional Tier 1 capital instruments (also: Contingent Convertibles (CoCo’s)) as from 1 January 2019.

Based on the press release and letter sent to Parliament, the current preliminary assessment is that such decision would focus on CRD IV compliant instruments. For Rabobank this means that the 5.5% EUR 1.5bn Capital Securities (XS1171914515) and EUR 1.25bn 6.625% Capital Securities (XS1400626690) could be in scope. Please note that there is no formal law change or amendment or any legislative proposal thereto available yet, so this is a preliminary conclusion. 
 
The announced intention by the Ministry of Finance does not currently trigger any change in our views with regards to the role of Coco’s as part of Rabobank’s capital strategy nor does Rabobank intend to exercise a Tax Call if the Government’s intention or the materialisation thereof would constitute a Tax Law Change (as defined in the relevant terms and conditions of the capital instruments in scope). 
 
Please find a link to the statement from the Ministry of Finance here.
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Investor News Mon, 02 Jul 2018 15:42:16 GMT
<![CDATA[Rabobank: Growth of the Dutch economy is past its peak ]]> https://www.rabobank.com/en/investors/irnews_research/investor_news/2018/20180618-rabobank-growth-of-the-dutch-economy-is-past-its-peak.html The Dutch economy looks to have reached the high point of its rapid growth. There is still growth, but at a slower pace. Gross domestic product (GDP) is expected to increase by 2.8 per cent this year and 2.1 per cent in 2019. The growth is supported by strong domestic demand. There are however significant international risks. Trade tensions between the US and the EU and between the US and China could intensify further, oil prices could rise further, and a hard Brexit is still a possibility. This is the message from the Rabobank economists in their Economic Quarterly Report published today.

Increasing employment, growth of real wages, high consumer confidence and rising house prices are driving the increase in consumption. Business investment is also strong, driven among other things by higher corporate earnings and higher capacity utilisation. Nonetheless, the Rabobank economists needed to adjust their forecast for economic growth in 2018 and 2019 to the downside. “This is partly due to weak imports by our major trading partners in the first quarter of 2018, leading to a contraction in Dutch exports,” explains Rabobank economist Carlijn Prins. “We have also reduced our forecast for home sales, somewhat reducing our expectations for housing investment.”

Prins also believes that a Brexit in which the UK leaves the EU without new agreements is still a risk for the Dutch economy. “A ‘hard’ Brexit is still a possibility, and would lead to higher import tariffs and non-tariff barriers. This could cause serious damage to the Dutch economy, due to the close trade relationships between the Netherlands and the UK. Our estimate currently is for an orderly exit, involving a transition period followed by a free trade treaty.”

A sharp increase in import duties between the US and the EU could also harm the Dutch economy. “The damage could increase rapidly if we have an escalation into a full-blown trade war. If for instance the US and its trading partners impose import tariffs of 20 per cent on all imports, an open economy such as the Netherlands could lose 3 percentage points of growth until the end of 2022. This would amount to 20 billion euros,” says Prins.

Lastly, a further increase in oil prices could have negative consequences for the Dutch economy. Prins: “In a scenario in which the oil price rises to 115 dollars a barrel, the Dutch economy would lose 1.2 percentage points of growth until the end of 2022. Inflation would rise, and household purchasing power in particular would be seriously affected. The Netherlands is after all a net importer of energy.”

The global economy will grow by 3.8 per cent both this year and next. International economist Ester Barendregt: “We have adjusted our forecasts for various economies to some extent. We see slightly higher growth for countries including the US, Australia and New Zealand, while we are adjusting our forecasts for the eurozone and Brazil in 2018 among others to the downside. The uncertainties on the global stage have also increased. Trade tensions have intensified further in the past period, several emerging markets are facing serious challenges and there are various geopolitical issues lurking in the background. Global growth could thus be lower than we currently expect.”

Read the full Economic Quarterly Report

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Investor News Tue, 19 Jun 2018 15:42:16 GMT
<![CDATA[Call notification ISIN: XS0376667266]]> https://www.rabobank.com/en/investors/irnews_research/investor_news/2018/20180515-call-notification-XS0376667266.html Call notification ILS 323,000,000 Israeli Inflation Linked Perpetual Non-Cumulative Capital Securities (the ‘Capital Securities‘) ISIN: XS0376667266

Rabobank issued the Capital Securities on 14 July 2008. In accordance with the Terms and Conditions of the Capital Securities, Rabobank may elect to redeem the Capital Securities on the First Call Date, being 14 July 2018, subject to certain conditions.

Notice is hereby given that, pursuant to Condition 8(c) of the Terms and Conditions of the Capital Securities, the Issuer has elected to redeem and will redeem all of the Capital Securities at the principal amount thereof, together with any accrued and unpaid interest on 14 July 2018. For the avoidance of doubt, since the First Call Date is a Saturday, the actual payment date is on Monday the 16 July 2018.

Registrar and Paying Agent
Deutsche Bank Luxembourg S.A.
WM Operations Luxembourg
2, Boulevard Konrad Adenauer,1115 Luxembourg
Luxembourg
    
Fiscal Agent and Paying Agent
Winchester House
1 Great Winchester Street
London EC2N 2DB
United Kingdom

Paying Agent
Coöperatieve Rabobank
Croeselaan 18
3521 CB Utrecht
The Netherlands

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Investor News Tue, 15 May 2018 06:00:00 GMT
<![CDATA[Call notification ISIN: CH0043174397]]> https://www.rabobank.com/en/investors/irnews_research/investor_news/2018/20180430-call-notification-ch0043174397.html Call notification CHF 325,000,000 (Tranche A) and CHF 25,000,000 (Tranche B) Perpetual Non-Cumulative Capital Securities (the ‘Capital Securities’)

Rabobank issued the Capital Securities on 12 June 2008. In accordance with the Terms and Conditions of the Capital Securities, Rabobank may elect to redeem the Capital Securities on the First Call Date, being 27 June 2018, subject to certain conditions.
 
Notice is hereby given that, pursuant to Condition 8(c) of the Terms and Conditions of the Capital Securities, the Issuer has elected to redeem and will redeem all of the Capital Securities at the principal amount thereof, together with any accrued and unpaid interest on 27 June 2018.
 
Principal Paying Agent and Listing Agent
UBS AG
Bahnhofstrasse 45
CH-8001 Zurich
Switzerland
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Investor News Mon, 30 Apr 2018 06:00:00 GMT
<![CDATA[Rabobank shares risk on part of its SME loan portfolio with EIF and EIB]]> https://www.rabobank.com/en/investors/irnews_research/investor_news/2018/20180328-sme-eib-eif-ec-rabobank.html Rabobank has shared the risk on a part of its Dutch SME portfolio with the European Investment Fund (“EIF”) and the European Investment Bank (“EIB”). This contributes to further optimisation of Rabobank’s balance sheet and stimulates lending to Dutch SMEs.

The transaction relates to more than 3,000 loans to Dutch SME’s originated by Rabobank with a total amount of circa EUR 2 billion and will be guaranteed by the EU budget under the European Fund for Strategic Investments (EFSI), which forms a central part of the “Investment Plan for Europe” of the Juncker Commission. 
 
Wiebe Draijer, Chairman of Rabobank’s Managing Board: “This transaction underlines Rabobank’s ongoing commitment to its SME clients. As a result of the risk transfer, risk-weighted assets will decrease by EUR 1.2 billion. Rabobank will use the freed-up capital to grant new loans to Dutch SMEs. Just like EIF and EIB we intend to stimulate lending to SMEs. We will transfer the discount granted to us by EIF and EIB to our customers. EUR 768 million of newly originated SME loans will benefit from this.”
 
“The EIF is delighted to be signing this securitisation transaction with Rabobank to support SMEs and mid-caps in the Netherlands”, said the Chief Executive of the European Investment Fund Pier Luigi Gilibert. "This new agreement will help to boost lending for small and medium-sized businesses across the country.”
 
Jyrki Katainen, European Commission Vice-President for Jobs, Growth, Investment and Competitiveness, said: "Thanks to this transaction supported by the European Fund for Strategic Investments, Rabobank will be able to lend more money to local businesses in the Netherlands. Dutch SMEs will be the winners in this deal."
 
The risk transfer to EIF and EIB has no consequences for the client relationship: clients will keep their contacts with Rabobank, and loan contracts and conditions remain unchanged. Rabobank is a leading SME loan provider in the Netherlands with a total SME portfolio of approximately EUR 100 billion.
 
Joint press release of EIF, EIB, EC and Rabobank
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Investor News Wed, 28 Mar 2018 06:00:00 GMT
<![CDATA[Moody’s downgrades Rabobank’s long-term ratings to Aa3 with stable outlook]]> https://www.rabobank.com/en/investors/irnews_research/investor_news/2018/20180327-moodys-press-release.html On 27 March 2018 Moody’s Investors Service announced the downgrade of Rabobank’s long-term debt and deposit ratings to Aa3 from Aa2 and revised their outlook to stable from negative.

The downgrade is the result of the adjustment of Rabobank’s Baseline Credit Assesment* (BCA) to a3 from a2 which, according to Moody’s, reflects the fact that despite material improvements in asset risks, capital and funding, the bank’s profitability improvement program to date, has not yet yielded sufficient benefits to withdraw the negative outlook and maintain a credit profile consistent with the previous high BCA of a2 (compared to our peers with a BCA of a2 and a3). It is Moody's view that Rabobank’s net profit ambitions, despite its strong fundamentals, are prone to low interest margins, normalising costs of credit risk and the challenges the bank faces in reducing its operating expenses.

The outlook on Rabobank’s deposit and senior unsecured debt ratings is stable because Moody’s does not anticipate any significant change in the bank’s creditworthiness over the next two-to-three years.


*Moody’s Baseline Credit Assessment (BCA) is their opinion of the probability of a bank’s standalone failure absent external support. Their BCA analysis involves three main components: a macro profile, financial factors and qualitative factors.
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Investor News Tue, 27 Mar 2018 16:36:25 GMT
<![CDATA[Rabobank publishes integrated Annual Report 2017]]> https://www.rabobank.com/en/investors/irnews_research/investor_news/2018/20180315_publication_annual_report_2017.html Rabobank published its integrated Annual Report 2017 today. The report gives an extensive account of the bank’s performance in social and financial terms. It illustrates how Rabobank plays a meaningful role for individuals, society and the environment and the progress made in 2017.

As a meaningful cooperative bank and a leading Food & Agri bank, Rabobank is committed to making a substantial contribution to welfare and prosperity in the Netherlands and to resolving the food issue worldwide. In the past year Rabobank furthered these ambitions with a new expression of its mission: “Growing a Better World Together”. The bank launched several practical and successful initiatives in the Netherlands and the rest of the world, resulting in more satisfied clients, ground-breaking innovations and improved financial results. The annual results 2017 were published on 15 February.

The integrated Annual Report 2017 also includes the Annual Accounts 2017 and the Pillar 3 report. The Annual Report 2017 is accompanied by a compact infographic showing our impact on society in the Netherlands and around the world. The links below give a total overview of infographics, animations and the annual results for 2017.

Elements of this press release are considered by Rabobank as inside information relating directly or indirectly to Rabobank within the meaning of article 7 of the Market Abuse Regulation (EU Regulation 596/2014) that is made public in accordance with article 17 Market Abuse Regulation.

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Investor News Thu, 15 Mar 2018 13:46:34 GMT