Agribusiness banking specialist Rabobank New Zealand increased its rural lending portfolio in the year to December 31, 2025, recording net lending growth of $166 million for its New Zealand Banking Group.
Rabobank New Zealand CEO Todd Charteris said the bank’s ongoing growth in 2025 further underscored its ongoing commitment to New Zealand’s food and agribusiness sector.
“Despite geopolitical volatility in several parts of the world, 2025 was an exceptional year for New Zealand’s food and agri sector, featuring strong pricing and export returns across all of the country’s key agricultural sectors,” he said.
“Confidence among primary producers was remarkably strong across 2025, and it was fantastic to see our clients and the wider sector performing so well.
“Rabobank’s goal is to further grow our New Zealand business by backing Kiwi farmers, growers and food producers. And we were able to do this in 2025 by continuing to support our existing clients, and by starting new relationships with several other top quality agribusiness operations.”
Todd Charteris, Rabobank New Zealand CEO
Mr Charteris said the lift in the bank’s portfolio in 2025 had been driven by an increase in lending in its agricultural (inside the farm gate) portfolio.
“Our agricultural lending portfolio (inside the farm gate) increased by $211 million to $13.96 billion last year, with this achieved in an overall agricultural debt market which recorded only modest growth,” he said.
“Rabobank New Zealand’s corporate (post-farm gate) portfolio contracted slightly, and this resulted in total net lending growth of $166 million to the New Zealand food & agri sector.”
Mr Charteris said the bank’s 2025 net profit after tax (NPAT) rose to $210.86 million, up by $15.56 million on the prior year, with this largely due to a release of impairments.
“Impairments of $22.38 million were released in 2025, a significant improvement on the previous year when impairments losses of $46.95 million were recorded as a result of challenging industry conditions across previous seasons,” he said.
“A combination of the much-improved returns for New Zealand’s farmers last year, along with the bank’s prudent management of its accounts, contributed to the release of impairments in 2025,” he said.
Mr Charteris said the jump in NPAT came despite lower income and higher operating expenses.
“Operating income dropped to $497.6 million (down 7.5%), due to market interest rates declining, and the competitive agri banking environment which pushed the overall Net Interest Margin (NIM) lower,” he said.
“Operating expenses rose by $12 million (up 5.5%), with this largely attributable to increased costs for staff, and for technology and system upgrades.”
Mr Charteris said all of Rabobank New Zealand’s profits have been retained in New Zealand and used to help fund food and agribusiness operators.
“This is a key part of our strategy and has enabled our ongoing growth,” he said.
One of the highlights for the bank in 2025, Mr Charteris said, was the inaugural Rabobank Community Hub campaign which saw $100,000 given away to rural community halls, clubrooms and marae across New Zealand.
“The competition proved a massive success in its first year attracting over 500 entries, 20 community groups from across the country were selected as winners with each receiving $5,000 to spruce up their local community hub,” he said
“This year we are repeating the campaign, with 10 winners receiving $10,000 each.”
Looking forward to 2026, Mr Charteris said the bank’s growth strategy would not change.
“Notwithstanding the current concern over the war in the Middle East and the implications for farm input costs, the outlook for the sector remains bright and we’ll continue looking for opportunities to support rural New Zealand and to further expand our agri lending portfolio,” he said.