State-owned Dutch lender ABN Amro’s private banking arm has posted an underlying profit of EUR28m for the third quarter of 2015, a 43% dip compared to EUR50m a year ago.
For the quarter ended 30 September 2015, the unit’s operating profit before tax fell 34% to EUR40m from EU60m in the year ago quarter.
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The unit’s operating income was up 3% to EUR314m from EUR304m a year ago, while net fee and commission income jumped 7% to EUR149m from EUR138m a year ago. Net fees increased due to a modest growth in client assets and the positive impact of full consolidation of the acquired German activities as from mid of the third quarter of 2014.
The division’s operating expenses for the third quarter of 2015 rose 16% to EUR269m from EUR232m in the third quarter of 2014.
Net interest income dropped 1 % to EUR147m compared with prior year quarter. Operating result was down 38% to EUR45m.
The bank said that underlying cost/income ratio for private banking increased significantly to 86% in the third quarter of 2015.
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By GlobalDataClient assets for the third quarter fell to EUR191.3bn due to lower market performance as a result of the negative sentiment on the stock markets.
Net new assets at the unit were EUR3.3bn mainly driven by the outflow of custody assets of a single client. This was only partly offset by the positive impact of transfers of Retail Banking clients and referrals from corporate banking to private banking.
Overall, the group’s underlying profit for the third quarter of 2015 rose 13% from the same period a year ago to EUR509m.
