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Finance News |
ABN Amro helped by cut in provisions for bad loans
ABN Amro, the Netherlands' biggest banking group, yesterday said 2004 profits had surged thanks to a sharp decline in provisions and profits on disposals.
However, the bank admitted that it hadn't performed as well as it hoped over the past four years and planned to refocus its business on mid-size clients.
Net profit grew 30pc to €4.1 billion (£2.8 billion), although after exceptionals the figure was €3.7 billion, up 17pc. Chairman Rijkman Groenink said the company had performed well despite difficult conditions, most notably pedestrian economic growth in the Eurozone.
Strong growth in the US, Brazil and Asia helped to offset a weaker performance in Europe, particularly the Netherlands where the company is the country's biggest retail bank. The bank was also helped by a 50pc cut in provisions for bad loans.
ABN's one-off gains came from the diposals of Bank of Asia and fleet management company Leaseplan. However, they were partially offset by one-off charges for a restructuring plan which has resulted in a number of redundancies along with a new pay and conditions agreement for staff in the Netherlands.
ABN also offered no forecast for performance this year and said the international outlook was mixed. The company has recently been the subject of merger speculation although it has said becoming a junior partner with a larger bank was its least favoured option.
Source : Telegraph UK
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