State-owned Dutch lender ABN Amro’s private banking arm has posted an underlying profit of EUR72m for the second quarter of 2015, a 64% increase compared to EUR44m for the same period previous year.
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The increase was mainly driven by higher operating income and lower loan impairments, partly offset by higher expenses.
For the second quarter ended 30 June 2015, the unit’s operating profit before tax surged 65% to EUR85m from EUR52m in the year ago quarter.
The unit’s net fee and commission income jumped 24% to EUR163m from EUR132m a year ago. Net fees increased due to higher client
The division’s operating expenses for the second quarter of 2015 rose 12% to EUR257m from EUR230m in the second quarter of 2014.
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By GlobalDataNet interest income stood at EUR141m compared with prior year quarter. Operating result was up 20% to EUR79m.
The bank said that underlying cost/income ratio for private banking improved by 1 percentage point to 77% in the second quarter of 2015.
Client assets for the second quarter fell to EUR206.1bn due to lower market performance. Net new assets were EUR1.5bn and included transfers of retail banking clients and referrals from corporate banking to private banking.
Overall, the group’s underlying profit for the second quarter improved by 86% year-on-year to EUR600m.
