Press Relations

21st May 2002
Rabobank Ireland

Rabobank Ireland plc, a subsidiary of the Dutch owned Rabobank Group, announced positive revenue growth across all business activities in their annual results, issued today with the company's annual report. The Bank has a strong focus on the food and agri sector in the Irish market and reported balance sheet growth of 12.5% to €18.7 billion (2000 €16.6 billion), at year-end December 31, 2001. Pre-tax profits increased by 15.3% to €40.7 million (2000 €35.3 million).

Retained earnings of €35.9 million were added to shareholders' funds (2000 €30.7 million). These earnings include an additional provision of €4.9 million for credit risk, a reflection of both the growth in business and Rabobank's prudent approach towards the global economic down turn.

Fergus Murphy, Managing Director, Rabobank Ireland plc commented: "We are pleased to deliver steady growth during a challenging economic climate. This represents the Bank's solid performance during what was a turbulent year.

"We have a diversified portfolio which we continue to expand. We adhere to strong credit quality standards and have implemented sound risk management. Although, we expect that credit markets will remain nervous in the immediate future, we anticipate a stronger economy in the latter end of the year and are confident that our business will benefit from this."

The Rabobank Group delivered net profits of €1,291 million, an increase of 8% on the previous year. The Group, which is the largest financial service provider in the Dutch market, serving more than half the population and businesses in the country, increased income by 9% to €8,434 million.

All Irish operating divisions - Financial Markets, Structured Finance, Corporate Banking and Management Services expanded their business base and contributed to the Bank's revenue growth. The Corporate Banking division, which focuses on providing bespoke financial solutions to Irish and international companies and financial institutions, delivered an increase in mandates and business and has a strong pipeline for the year ahead.

The Structured Finance team worked closely with Rabobank's Corporate Banking division in Dublin and Rabobank International offices in cross-border transactions and generated substantial returns as a result.

The Financial Markets team managed interest rate and market risks effectively during the year and Rabobank benefited from an unprecedented reduction in US interest rates, following the recession there. The Investment books in Rabobank Ireland are mature and grew in nominal size by €1.9 billion during the year. The average credit rating of these books is AA.

During 2001 Rabobank Nederland acquired ACCBank plc. The transaction, which was originated, sponsored and managed by Rabobank Ireland from due diligence phase through to completion of the deal, was formally signed in December 2001. ACCBank's retail network and focus on the agriculture and SME sectors, represents a natural fit to the Rabobank Group and is the first example of an IFSC based international banking group launching into the retail and SME markets in Ireland.

Fergus Murphy, Managing Director said:

"The critical mass and strong infrastructure that we have developed in the IFSC over the last eight years will serve us well this year. We will continue to develop our wholesale banking franchise and we expect that ACCBank will be a highly successful part of the Rabobank Group in the future."
Ends

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