Bank in for long haul: manager

A new building for Rabobank's Wanganui branch demonstrates that the rural bank is in town for the long haul, manager Carl Gibson says.

The $500,000-plus building is going up in St Hill St, opposite Hill St Greens. It's being constructed by DML builders and was designed by Noel Mouldey. Rabobank has signed a 15-year lease with the owner, a local farmer who trades as Fernielea Investment Ltd.

"It's nice to be part of bringing some new business and new employment to town," Mr Gibson said.

Rabobank opened its Wanganui branch in February in a temporary office at 291-295 Victoria Ave. But it had always intended to have a permanent and purpose-built home.

The one being built at present should be ready for the bank's five staff to move in early next year.

Its two managers, Mr Gibson and rural manager Alan Dudin, have long banking histories and met at a previous bank.

Mr Gibson said the site for the new building would be good for farm customers, who could drive to it and still be close to the CBD.

Rabobank started more than a century ago, as a co-operative formed by Dutch farmers to finance farming enterprises. It lends money to agricultural and food businesses - in Wanganui mainly farms. On the corporate side it lends to places like supermarkets and meat processors, and Rabodirect also lends to individuals.

People at the Wanganui branch launch in April were told Rabobank was confident about the future of farming in the district.

"Wanganui has a productive base built around the sheep, beef, dairy and grains sectors, where the supply and demand dynamics have firmed materially in recent years," general manager Ben Russell said then.

The bank's Wanganui customers were first serviced from its Feilding branch. Since the Wanganui branch opened. its staff has grown from three to five and it has acquired new customers.

"Some accounts came across from Feilding, plus we have been doing quite a bit of work with people we already knew in the market," Mr Gibson said.

New work included land sales, and refinancing loans from other banks.

People liked that Rabobank had an AAA credit rating from Standard and Poor's. And because it was a co-operative, its customers were its shareholders.

Rabobank New Zealand posted a total after tax income of $47.8 million in the nine months to September 2010, more than double the amount for the same period in 2009.

It operates in 48 countries. Wanganui's is the 31st branch in New Zealand.