In the Netherlands, Rabobank has revealed that it enjoyed a good first half of 2011, with net profit up 13 per cent to €1.9bn, despite a global economic recovery described by the group as 'modest'.
The organisation, a global leader in food and agricultural financing, said that its net profit gains were largely used to further strengthen its equity, which is needed to keep buffers at a 'robust level'.
Rabobank said that it took responsibility as a cooperative bank by taking a flexible approach and offering assistance to customers impacted by the E.coli bacteria outbreak in Germany, with the subsequent fall-out for Dutch greenhouse vegetable growers impacting on bad debt costs.
'Owing to the problems caused by the international public debt crisis, which will be with us for some time to come, the growth rate of the Dutch economy will be relatively low in the second half of 2011 as well,and the uncertainties in the markets and shared by our clients will remain sizeable,' the group said.
'We expect growth in lending and in amounts due to customers to remain moderate. Despite the current turmoil in the financial markets, Rabobank is optimistic about the level of its profitsfor the full year 2011, assuming no further worsening of the current economic conditions. We use these, as we always do, to maintain our equity position at an appropriate level, so we can continue to serve ourcustomers on a long-term basis going forward.'
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