Press Relations

28th May 2001
Rabobank Ireland

Highlights

• Profit before taxation up 61% to €35.3 million (1999: €21.9 million)
• European Service Centre established in Dublin to manage a proportion of the Bank's European corporate banking portfolio

Rabobank Ireland plc, a subsidiary of the Dutch owned Rabobank Group, announced a year of strong revenue growth and continued business development in their annual results which were published today with the company's annual report.

Rabobank Ireland, which continues to be one of the leading financial institutions within Dublin's IFSC and an important part of the Group's global strategy, announced balance sheet growth of 23.2 % to €16.6 billion (1999: € 13.5 billion), at year end 31st December 2000, reflecting both organic growth of mature businesses and new activities.

Pre-tax profits increased by 61 % to €35.3 million (1999 €21.9 million). Retained profits of €30.7 million were added to shareholder funds, thereby increasing capital and reserves by 7.1% to €465.4 million.

Rabobank Group, parent of Rabobank Ireland, experienced double-digit growth in 2001, delivering net profits of €1,194 million, an increase of 17 % on the previous year. Income increased by 14% to €7,751 million.

All Irish operating divisions - Global Financial Markets, Corporate Banking and Structured Finance, together with sister companies Interpolis and De Lage Landen - contributed to the growth.

Fergus Murphy, Managing Director, Rabobank Ireland plc commented: "Our performance last year was highly encouraging given the volatility in global financial markets and credit spreads. We continued to develop business across a full range of activities and all our business segments delivered strong growth. This reflects well on the robustness of the franchise here in Ireland and the operating environment of the Bank in the IFSC".

Rabobank Ireland expanded operations to include a new European Service Centre in the IFSC with the objective of managing a proportion of Rabobank's European corporate banking portfolio. To date some of the Group's Turkish, Argentinian, South African and Polish projects are being managed by the Centre and soon to include some German projects.

Rabobank's global financial markets division continued to grow its own account money market, interest rate derivatives trading and investment management. During the year strong growth was experienced in US mortgage backed securities book and financial markets activities concentrated in European UK and US markets. Capital Markets and Derivative sales to Irish Institutional and corporate clients also grew significantly.

Over the year Rabobank's Corporate Banking and Structured Finance Team continued to develop strong client relationships and delivered new investment and financing products to Irish corporates. This was particularly focused in the food and agri sector and so built on the banks global expertise in this area.

Fergus Murphy, Managing Director said: "2001 has started well for Rabobank Ireland plc and for Rabobank International in general. In Ireland, we are working with a number of large Irish food and agri corporates on strategic financing projects. Our capital markets sales activities continue to grow particularly the provision of balance sheet and funding solutions. The treasury and Investment books have benefited from the movements in interest rates this year, particularly in the US.

"With the establishment of our new European Services Centre, we continue to expand our servicing activities to other Group entities and expect the Centre to generate approximately €200 million worth of business for Rabobank Ireland during the first half of 2001. All in all, we anticipate a positive year for the Dublin operation."

Ends

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