Statement on Rabobank Group global strength and position in relation to the European debt crisis
Rabobank confirms its position as one of the strongest banks in the world. The bank’s net profit increased by 13% to EUR 1,854 million in the first half of 2011. Our total assets stood at EUR 665 billion as at 30 June 2011.
Rabobank is well capitalised and has very strong solvency ratios, with a tier 1 capital ratio (a key measure of solvency) of 16.2 per cent.
The European Banking Authority’s bank stress tests, carried out this European summer, showed Rabobank to perform very strongly. The tests showed that under a worst-case stress scenario, Rabobank’s core tier 1 ratio would be more than twice the level required to pass.
At EUR 448 million (0.067% of total assets), Rabobank Group has very limited net exposure to European government bonds issued by Portugal, Italy, Ireland, Greece and Spain. Our current exposure to Greece amounts to EUR 111 million (0.017% of total assets), while sovereign debt exposure to Italy is EUR 255 million (0.038% of total assets).
Rabobank has been ranked among the top 10 safest banks in the world for more than 10 years in Global Finance magazine’s list of the world’s safest banks.
All deposits and investments with RaboDirect and Rabobank in Australia and New Zealand are fully guaranteed by the global Rabobank Group.
Locally, Rabobank Australia & New Zealand Group has recorded a very solid financial performance. For 2010, Rabobank Australia & New Zealand achieved a record net profit after tax of AUD 182.9 million, up 7.5 per cent on the previous year.
For the first half of 2011, Rabobank Australia & New Zealand’s results were similarly strong – tracking ahead of budget at a net profit after tax of AUD 104 million.
Since its inception, all profits made by Rabobank Australia & New Zealand Group have remained within Australia and New Zealand and have been reinvested in the local market.
