Rabobank Australia & New Zealand Group – the regional grouping of Rabobank’s Australian and New Zealand businesses – recorded its eighth consecutive year of profit growth in 2017, posting a total net profit after tax (NPAT) of A$336.4 million for the year. This was an increase of 14.4 per cent ($42.3 million) on the previous year.
Rabobank Australia & New Zealand Group (RANZG) managing director Peter Knoblanche said the bank’s solid financial performance reflected the healthy growth among its clients in the Australian and New Zealand agribusiness sectors in 2017.
Part of the global Rabobank Group, the world’s leading food and agribusiness banking specialist, Rabobank is one of Australia and New Zealand’s largest agricultural lenders and a major provider of corporate and business banking services to the region’s food and agribusiness sector.
Key financial measures for the overall Rabobank Australia and New Zealand Group businesses once again improved in 2017.
Importantly, Mr Knoblanche said, in addition to the sound financial results, Rabobank had again recorded excellent client satisfaction scores in its core rural banking markets in both countries, measured independently by research consultancy Kantar TNS*.
“The rural banking business in Australia achieved a market-leading net promoter score (NPS) indicating a very healthy level of client satisfaction, which had improved even on the previous year, with Rabobank top ranked in the majority of measures,” he said. “Strong client satisfaction scores were also maintained by Rabobank’s New Zealand business.
“The value clients placed, in particular, in Rabobank’s knowledge and expertise in food and agribusiness in terms of research and insights was especially evident.”
Mr Knoblanche said total income for the year to December 31, 2017 was up on the previous year, by 3.2 per cent ($24.7 million), with revenue of $793.9 million.
Total costs decreased, while provisions were down to near zero.
“Total costs for the year were down by $11.2 million (3.4 per cent), while provisions were close to zero and in fact slightly in the positive with a small overall release in provisions of $1.7 million. This compared with a provision charge of $26.1 million in 2016,” Mr Knoblanche said.
The level of total provision charges had significantly reduced for the second consecutive year, he said, reflecting the continuing improvement in credit quality of the bank’s loan portfolio in both Australia and New Zealand.
RANZG’s total cost-to-income ratio was 40.4 per cent. This was down from 43.1 per cent in 2016, Mr Knoblanche said.
RANZG’s two primary local banking entities in Australia and New Zealand – Rabobank Australia Limited and Rabobank New Zealand Limited – maintained a robust capital position.
Total regulatory capital ratio – a key measure of solvency – increased to 14.76 per cent for Rabobank Australia Limited at December 31, 2016, while Rabobank New Zealand Limited’s increased slightly to 13.63 per cent. This saw both continue to sit well above the regulatory capital requirements.
“Importantly, the majority of the total regulatory capital consisted of Common Equity Tier 1 capital for both countries,” he said.
Mr Knoblanche said RANZG’s combined Country Banking businesses had grown strongly against significant competition in 2017 increasing lending assets by $1.1 billion (or five per cent).
The local regional Rabobank Australia and New Zealand results follow the announcement from global parent, Rabobank Group, of a net profit of EUR 2.7 billion (a 32 per cent increase on 2016). The Group’s Common Equity Tier 1 capital ratio and total capital ratio – key measures of solvency – continued to strengthen to 15.8 per cent (compared with 14.0 per cent in 2016) and 26.2 per cent (compared with 25.0 per cent in 2016) respectively, while the leverage ratio rose to 6.0 per cent (compared to 5.5 per cent in 2016). The liquidity position remained strong, with the total liquidity buffer increasing to EUR 103 billion (2015 was EUR 98 billion).
Mr Knoblanche said all profits earned and deposits raised by Rabobank in Australia and New Zealand were retained and reinvested in the local rural and corporate agricultural markets in Australia and New Zealand.
He said Rabobank’s regional performance in 2017 provided a solid foundation for continued growth in the coming 12 months, with the bank retaining an overall strong positive outlook for the Australian and New Zealand agriculture in the following year.
“As part of an international banking cooperative specialising in food and agribusiness, Rabobank in Australia and New Zealand is in a strong position to continue to support agricultural producers and the food and agribusiness sector in this region as they develop into the future,” he said.
* 2017 Brand Health Surveys, Kantar TNS (independent research consultancy).
Rabobank Australia & New Zealand is a part of the global Rabobank Group, the world’s leading specialist in food and agribusiness banking. Rabobank has 120 years’ experience providing customised banking and finance solutions to businesses involved in all aspects of food and agribusiness. Rabobank is structured as a cooperative and operates in 38 countries, servicing the needs of approximately 8.4 million clients worldwide through a network of more than 1000 offices and branches. Rabobank Australia & New Zealand is one of Australasia’s leading agricultural lenders and a significant provider of business and corporate banking and financial services to the region’s food and agribusiness sector. The bank has 93 branches throughout Australia and New Zealand.
Media contacts:
Denise Shaw
Head of Media Relations
Rabobank Australia & New Zealand
Phone: 02 8115 2744 or 0439 603 525
Email: denise.shaw@rabobank.com
Skye Ward
Media Relations Manager
Rabobank Australia
Phone: 02 4855 1111 or 0418 216 103
Email: skye.ward@rabobank.com