ABN AMRO’s private banking arm has posted a net profit of EUR35 million for the first quarter of 2013, down 38.6% from EUR57 million in the year ago quarter.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
According to the bank, the decline was driven mainly by a positive large item in the first quarter of 2012 combined with slightly lower margins on savings and higher pension expenses in the first quarter of 2013.
The unit’s assets under management (AuM) grew by EUR2 billion in the first quarter of 2013 to EUR165.1 billion. However, net new assets were flat.
Overall, the Dutch banking group’s net profit for the first quarter of 2013 amounted to EUR415 million, 17% lower than the first quarter of 2012.
Commenting on the results, Gerrit Zalm, chairman of ABN AMRO Group, said: "The first quarter of 2013 can be qualified as a difficult quarter. Although the net profit of EUR415 million is a good result at first glance under these circumstances, the development of net profit was affected by several large items. Excluding these large items, which include Greek exposures, a net profit of EUR290 million would have remained. This is a EUR185 million decline compared with Q1 2012, but an increase of EUR173 million compared with Q4 2012."
The bank also said that it plans to cut a further 400 jobs from its commercial and merchant banking arm. Some of these jobs will be accounted for by not replacing staff who leave and by moving people elsewhere within the company.
‘As unemployment is still on the rise and no economic growth in the Netherlands is expected for 2013, we remain cautious for the remainder of the year,’ Zalm added.
