Rabobank New Zealand says an independent review of its governance and management shows the bank complies with relevant legislation and its conditions of registration.
Rabobank makes these comments in its December quarter General Disclosure Statement. This comes after interest.co.nz reported last year that the Reserve Bank had sought an independent review of Rabobank's governance. Concerns included that the Rabobank group operates on a regional basis in Australia and New Zealand, effectively as one organisation with the same board.
"As referenced in the disclosure statement for the six months ended on 30 June 2018, the Bank conducted an independent review of its governance and management frameworks and their operation, the extent of their independence from the global Rabobank co-operative group, and their consistency with the current expectations of the Reserve Bank of New Zealand," Rabobank says.
"The review has now concluded. It found that the Bank’s governance arrangements complied with the relevant legislation and its conditions of registration. Rabobank is committed to ensuring that its governance and management frameworks remain appropriate and consistent with regulator expectations and requirements."
Meanwhile Rabobank NZ has posted a $5.023 million, or 5%, drop in annual profit to $103.089 million in the 2018 calendar year from $108.112 million in 2017. The drop came as operating expenses rose $9.989 million, or 10%, to $111.639 million, and operating income rose $3.391 million, or 1%, to $255.708 million. Notable cost increases came from management expenses and recharge costs, professional fees, personnel and travel and lodging.
Rabobank's individually impaired assets fell $35.870 million year-on-year to $257.246 million. Gross lending increased $613.571 million, or 6%, to $10.633 billion. Deposits increased $253.946 million, or 6%, to $4.262 billion. And, as of December 31, Rabobank NZ's common equity tier 1 capital ratio sat at 13.26%, up 17 basis points year-on-year.
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