ABN AMRO Group reports further improvement of its results

Press release -

Reported net result in the first nine months of 2010 was a loss of EUR 627 million, due to the sale of the EC Remedy (sale of part of Dutch commercial bank) and separation, integration and restructuring costs (2009 reported net profit: EUR 352 million

  • Underlying net profit, which excludes the sale of the EC Remedy and separation, integration and restructuring costs, of EUR 768 million (2009 underlying net profit: EUR 202 million)

  • This increase was driven by higher net interest income, lower impairments and a gain on the buyback of own debt of EUR 130 million net of tax

  • Improvement of underlying cost/income ratio to 70% (2009: 74%)

  • At 30 September 2010, pro forma combined core Tier 1, Tier 1 and total capital ratio under Basel II were 10.1%, 12.6% and 16.6% respectively

  • Reported third quarter 2010 net profit of EUR 341 million; underlying third quarter 2010 net profit of EUR 443 million and includes a gain on the buyback of own debt

  • Integration is well on track

Gerrit Zalm, Chairman of ABN AMRO Group comments:

“ABN AMRO Bank and Fortis Bank Nederland merged on 1 July 2010. It is very encouraging to see the positive reactions so far from staff and customers alike. Employees are eager to build a new bank and have shown unflagging commitment, despite the challenging times they have gone through. The heightened focus on customers has resulted in a decentralisation of responsibilities, simplification of the product offering and improved communication with our customers.

The underlying net profit for the first nine months - which excludes separation and integration related items, including the sale of the EC Remedy - more than tripled to EUR 768 million (2009: EUR 202 million). ABN AMRO is well on its way to improve the reported and underlying profitability of the bank as synergies will start to emerge from now on and integration costs will start to decline.

The integration is well on track. The merger of 150 of the 650 branches into 500 branches was finalised in early July, and by mid-November the client data of over one million Fortis Bank Nederland retail customers have been successfully transferred to the IT platform of ABN AMRO Bank during a series of five weekends. Customers have experienced minimal disruption and customer satisfaction continues to be slightly higher than in 2009. Although the integration process will not be finalised until 2012, the steps taken so far have been successful.”

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