Netherlands-based agri-business Rabobank Group has experienced a 12 per cent rise in net profits so far this year.

In the first six months of 2005, the company’s turnover totalled £840 million.

The increase is attributed to lower operating expenses coupled with a higher income and interest rates being at an all-time-low.

"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,” said Bert Heemskerk, chairman of the Executive Board of Rabobank Group.

Despite the company’s financial success it predicts a limited increase in income over the next few months due to shrinking margins, but Heemskerk said keeping a rein on expenses will ensure that the company records a minimum of 12 per cent for the whole year.

Rabobank began as a collection of small rural banks. It is now owned by 288 local banks which provide financial services and products to retail and business markets in the Netherlands.

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