Netherlands-based Rabobank Group signed an agreement today to acquire ownership of the holding companies that own two Indonesian banks, Bank Haga and Bank Hagakita, from individual sharehholders.
Bank Haga and Bank Hagakita were founded almost 17 years ago and focus primarily on serving owners of small and medium-sized businesses in the trading, manufacturing and business services sectors. The two banks have a combined total of 1,537 employees and a network of 78 branches, sub-branches and cash offices located in Java, Bali and southern Sumatra. The two banks had total assets of Rp. 3.97 trillion as of 31 December 2005.
Rabobank has assets of ¤ 506 billion and a net profit of ¤ 2.1 billion as of 31 December 2005, making it the world's 14th largest bank in terms of tier I capital. Rabobank also is the world's the leading financier in the food and agribusiness sector and has received credit ratings of AAA from Standard & Poor's and Aaa from Moody's, the only privately owned bank in the world to achieve this status. Rabobank has an existing Indonesian subsidiary, PT. Bank Rabobank International Indonesia, which has been in business for 16 years and focuses primarily on corporate clients.
Hans ten Cate, member of the Executive Board responsible for the group's international activities and chairman of the Managing Board of Rabobank International, remarked that "Bank Haga and Bank Hagakita have an impressive track record of consistent growth since their founding 17 years ago. The professional management teams and the loyal employees have developed a strong relationship with their SME customer base as well as a sound bank. This is an exciting platform for Rabobank to grow our business in Indonesia and we look forward to working with the management and employees of the two banks to develop product offerings to serve and grow their customer base even better."
Timoty Marnandus, Chairman of the Board of Commissioners of Bank Haga and Hagakita, stated "The acquisition by Rabobank, the world's only privately owned AAA-rated bank, will give us the resources to grow faster and offer improved service to our customers in areas such as lending, trade finance, treasury services and foreign exchange. It will also provide our dedicated employees with a strong platform to grow in the banking sector. We look forward to working with them and we believe strongly that by joining the Rabobank Group our customers and employees will be even better served."
The acquisitions are consistent with Rabobank's strategy of being the world's leading financier in the food and agribusiness sector (Food & Agri). These acquisitions will provide Rabobank with access to the small- and medium-sized enterprise sector in Indonesia and will supplement its existing presence in the country's large business market. Rabobank plans to develop Hagabank and Bank Hagakita further as professional financial services providers for the SME and retail sector in Indonesia. Rabobank will accordingly invest in a number of areas including the further development of trade financing, treasury services and also transactional banking. The acquisition will enable Rabobank to offer new financial products and services to the Indonesian market and will in turn provide the Banks with access to the global network and expertise of the Rabobank Group.
The Indonesian economy is the largest in Southeast Asia with a total value of approximately USD 260 billion and annual growth of 5 to 6 percent. Food and Agriculture plays an important part in the economy contributing around 15% of GDP with an annual turnover of USD 23 billion. In addition, Indonesia has a thriving SME sector and strong growth for retail and SME banking services. As such, the acquisition of Bank Haga and Bank Hagakita fits well with Rabobank's global strategy.
Earlier this week, Rabobank announced that it acquired a ten percent interest in United Rural Cooperative Bank of Hangzhou (URCB) located in the capital of the Zhejiang Province, P.R.C. Those two acquisitions underline the importance Rabobank gives to the Asian Region. Note for editors, not for publication
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About the Rabobank Group
The Rabobank Group was founded in the Netherlands in 1898 and is the world's only privately owned bank that is AAA rated by both Moody's and Standard & Poor's.
Internationally, the Group encompasses well-known specialised entities as Rabobank International (corporate banking, investment banking and international internet and retail banking), De Lage Landen (leasing and vendor financing) and Robeco (asset management).
The Rabobank Group is one of the world's fourteenth largest financial institutions in terms of Tier 1 Capital with total assets of EUR 506 billion and a net profit of EUR 2.1 billion as of 31 December 2005. Furthermore, its solidity and stability is evidenced by being named one of the Top 3 World's Safest Banks by Global Finance magazine in 2005.
Founded on the basis of cooperative principles, Rabobank has today evolved to an international financial service provider, offering the world's leading financial services in food & agribusiness globally to over 9 million private and business customers.
Rabobank's head office is based in Utrecht, the Netherlands, with 51,000 employees located worldwide in 1,516 offices across 37 countries.
More information about the Rabobank Group can be obtained from our website www.rabobank.com
About Bank Haga and Bank Hagakita
Incorporated in 1989, the Banks are both focused on serving SME clients and share the same products and policies. The two banks have a combined staff of 1,537 and a network of 78 (sub) branches/cash offices. Bank Haga has branches in Jakarta, West and Central Java and southern Sumatra. Bank Hagakita has historically focused on East Java and Bali, although in recent years it has opened branches in Jakarta in areas not served by Bank Haga.
The Banks are known for their high quality of their management and employees, strong relationship with clients, and long track record of success in serving the SME sector. The Banks' main clientele are SME customers that are active in Trading, Manufacturing and Business Services. The Banks have also a strong retail client base, serving them with a broad range of saving and loan products and other financial services.
Over the years, Bank Haga and Bank Hagakita have achieved high and consistent growth. Lending grew at CAGR of 27.5% over 1990 and 2005; funding grew at CAGR of 27% over 1990 and 2005. The two banks had total assets of Rp. 3.97 trillion as of 31 December 2005.
More information about Bank Haga and Bank Hagakita can be obtained from our websites: