The private banking arm of Dutch lender ABN Amro has reported a net profit of €67m for the fourth quarter of 2018.

This represents a surge of 121% from the €30m net profit it reported in the fourth quarter of 2017.

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The division’s operating profit before tax also jumped, with a 132% year-on-year growth to €85m.

The unit’s operating income for the three months to December 2018 was €305m, down 7% from €328m last year.

Operating expenses plummeted 20% to €230m on a year-on-year basis.

However, client assets at the unit dropped to €181.7bn from €200.6bn a year earlier.

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The cost/income ratio of the private banking unit at the end of December 2018 was 75.4%.

Overall, the banking group registered a net profit of €316m in the fourth quarter of 2018.

The figure was a 42% slump from €542m in the previous year.

ABN Amro CEO Kees van Dijkhuizen said: “We saw solid operational delivery in Q4 2018. However, net profit was impacted by additional costs of accelerating Customer Due Diligence (CDD) remediation programmes and by elevated loan impairments in specific sectors.

“The full-year 2018 net profit was good at EUR 2.3 billion. We are on track to meeting our financial targets for 2020 and reconfirm the targets and guidance given at our Investor Day, despite a somewhat weaker economic outlook. Our capital position strengthened further.

“We therefore propose paying an additional amount of dividend on top of the targeted 50% of sustainable profit. A final dividend of EUR 0.80 per share will be proposed, bringing the proposed total dividend for 2018 to EUR 1.45 per share.”