Netherlands-based group Rabobank defied the turbulent economic environment to boost profits by 2 per cent in 2008, hitting €2.8bn for the year despite negative effects of the credit crunch amounting to €500m in the first half of the year and €700m in the second half.
The group's private loan portfolio increased 11 per cent to €408.6bn through the year, while lending to the Dutch SME sector increased significantly to €55.7bn, a jump of 21 per cent.
“2008 may rightly be called a historic year. The subprime crisis inthe United States escalated to become a deep and world-wide financialcrisis,' said the chairman of the group's executive board Bert Heemskerk. 'It is difficult times like these that the benefits of a cooperativebank clearly come to the fore.'
He continued: 'Our societally oriented businessculture, which is based on the Rhineland model, our democraticconsultative structure, our prudent risk management, our sustainableremuneration policy – all these factors, combined with our strongfinancial performance and solvency, have contributed to RabobankGroup's continuing stable performance.'
He added that the group would undoubtedly feel the consequences of the economic crisis in 2009, with growth and lending hit, but solvency and liquidity would remain strong.
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