NZ: Rabobank increases rural lending
Rabobank New Zealand chief executive Ben Russell said that during 2011, most of the bank's rural portfolio growth reflected refinancing activity rather than organic growth of existing customers.
"Many farmers took the opportunity to repay debt and consolidate their financial position in 2011, with a combination of high commodity prices, a good season across much of New Zealand and low interest rates," Russell said.
Rabobank New Zealand's annual net profit fell 25.3 per cent to $53.8m, reflecting increased investment, tighter net interest margins and a number of one-off items.
All profits earned by Rabobank New Zealand were retained and reinvested in the local market, Russell said.
Looking ahead, Rabobank said it retained a strong medium-term to long-term growth outlook for New Zealand's food and agribusiness sector, although there remained significant volatility on commodity markets and in the wider economic environment.
The challenges being faced by the kiwifruit industry are being monitored by the bank, though Russell said the bank remains committed to the sector for the long term.
Source: www.stuff.co.nz
