Cooperatieve Rabobank U.A.

Over 2024, we estimate that operating revenue growth will be broadly stable, up 1% compared with 2023. Our forecast reflects our view that Rabobank's NIMs have reached their peak. We project a slight increase in the overall cost of risk, up to about 20 basis points (bps), due to the uncertain economic environment and geopolitical tensions. Overall profitability is expected to remain sound in 2024-2026. We anticipate that the bank's reported net income for 2024 will be higher than €4 billion, but below the €4.3 billion reported in 2023. Net income is affected by the decline in interest rates, further repricing of deposits, higher employee costs, and the slightly higher cost of risk. The bank's deposit base is very granular

...S&P Global Ratings views as positive Rabobank's clearly defined strategy to focus on its leading franchise in the Dutch retail banking market and the financing of F&A business globally. Rabobank is a leading Dutch bank, but has expanded its international activities in specific sectors to increase its diversification. Its domestic business has a good record of sound operating performance. In our view, the bank's prudent financial planning and balance sheet management makes its capacity to generate earnings predictable. Rabobank has also focused on strategically simplifying its organization. We expect it to harness its leading franchise and solid fundamentals to develop its...

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