Trading update: Q1 2010

Press release -

The net profit of ABN AMRO Bank in the first quarter of 2010 amounted to EUR 178 million, mainly due to low loan impairments and improved revenues; excluding separation and integration costs, net profit would have been EUR 229 million.

  • At 31 March 2010, Tier 1 capital ratio and total capital ratio of ABN AMRO Bank was 10.9% and 15.3% respectively (Basel I, transitional regime until separation on 1 April 2010)

  • The net profit of Fortis Bank Nederland in the first quarter of 2010 amounted to EUR 73 million, as a result of improved revenues and modest loan impairments; excluding separation and integration costs, net profit would have been EUR 85 million

  • At 31 March 2010, Tier 1 capital ratio and total capital ratio of Fortis Bank Nederland was 12.3% and 16.3% respectively (reported Basel II ratios including transitional floor) ABN AMRO Bank and Fortis Bank Nederland have made further progress on the preparations for the integration and intend to legally merge in the third quarter of 2010.

Gerrit Zalm, Chairman of ABN AMRO, Fortis Bank Nederland and ABN AMRO Group comments:

"This is the first time that the results of both ABN AMRO Bank and Fortis Bank Nederland have been published at the same time. The transfer of ABN AMRO Bank and Fortis Bank Nederland to ABN AMRO Group on 1 April 2010 marks the start of a new era for the two banks. ABN AMRO Bank and Fortis Bank Nederland intend to legally merge in the third quarter of this year and the majority of the activities will operate under one brand, ABN AMRO, as of that date.

Preliminary signs of a recovery of the Dutch economy are reflected in the first quarter results of both banks, resulting in a significantly improved performance year-on-year. The net result of ABN AMRO Bank increased from EUR 87 million to EUR 178 million and the net result of Fortis Bank Nederland improved from a loss of EUR 6 million to a net profit of EUR 73 million. This is the result of good revenue growth and low impairments, combined with continued cost management. This progress was achieved despite higher funding costs and additional separation and integration costs.

The second quarter results of both banks will be significantly impacted by the loss that will be recorded as a result of the closing of the EC remedy of between EUR 800 - 900 million (net-of-tax) and restructuring provisions of approximately EUR 475 million (pre-tax). In addition, we expect loan impairments to be higher compared with the very low levels seen in the first quarter.

Going forward, ABN AMRO Group will give an update on a quarterly basis on our main developments."

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