UTRECHT, Netherlands, Sept. 5, 2005 (PRIMEZONE) -- Rabobank Group:
-- Net profit up 12% -- Income up 5% -- Expenses down 1% -- Savings up 6% -- Private sector lending up 7% -- Tier 1 ratio 10.9
In the first six months of 2005, Rabobank Group saw its net profit increase by 12%, to EUR 941 (840)(1) million. The healthy growth in lending was due in part to interest rates being at an all time low. The tighter interest margin caused by the competition on the mortgage loan market meant that growth in net interest was limited. In contrast, commission and other income rose sharply. Lower operating expenses in combination with higher income led to a strong increase in net profit. Bert Heemskerk, chairman of the Executive Board of Rabobank Group: "We are satisfied with our results for the first half of the year. The profit growth is in line with our long-term target and we are on course to achieve our strategic goals in the Netherlands and abroad. All group units contributed to the improved results."
Outlook for the full year 2005
Rabobank expects a limited increase in income in the remainder of the year due to shrinking interest margins. "Rabobank Group will have to continue to keep a tight rein on costs for the rest of the year. This should lead to total expenses for the whole of 2005 remaining at the same level as for 2004. Barring unforeseen circumstances, we therefore expect to maintain net profit growth at a minimum of 12% for the full year," said Heemskerk today during the press conference. (1) The figures between brackets in this press release are the figures for the corresponding period of 2004.
(1) The figures between brackets in this press release are the figures for the corresponding period of 2004.
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