ABN AMRO reports underlying net profit of EUR 827 million for H1 2012 and EUR 341 million for Q2 2012
Underlying net profit for H1 2012, excluding integration and separation-related expenses, declined to EUR 827 million (from EUR 974 million for H1 2011) due to higher impairment charges
The underlying operating result for H1 2012 increased by 4% and the underlying cost/income ratio improved to 59% from 63% in H1 2011
Underlying net profit for Q2 2012 decreased to EUR 341 million (from EUR 486 million for Q1 2012) as impairment charges almost doubled
Reported net profit for Q2 2012 was EUR 289 million and EUR 743 million for H1 2012
At 30 June 2012, the Core Tier 1 ratio improved to 11.9%. The Tier 1 ratio and total capital ratio were slightly lower at 12.7% and 16.2% respectively
The remaining client-related integration activities are expected to be finalised by the end of this year
Gerrit Zalm, Chairman of ABN AMRO Group, comments:
“The operating environment in the first half of 2012 remained challenging, as anticipated. The recession, which started in the second half of 2011, continues to impact the Dutch economy. This is reflected in a sharp increase in the number of business failures compared with the first six months of 2011 and in the unemployment rate, which although still relatively low, has increased over the past three quarters.
The bank realised a satisfactory result for the first six months of 2012 in this difficult operating environment which predominantly affected the Dutch activities. The contribution of the international activities remained unchanged compared to last year. Underlying net profit was EUR 827 million, 15% lower than the first six months of 2011. A modest improvement in the operating result was more than offset by a rise in loan impairments in most of our activities. Cost containment and integration benefits contributed to an improved cost/income ratio of 59%. The Core Tier 1 capital position increased significantly following the settlement reached with Ageas. A Tier 2 transaction was executed in July 2012, to further enhance the Tier 2 and total capital position ahead of Basel III implementation. Including this transaction, a total of EUR 14.6 billion of long-term funding has been issued year-to-date, with all longterm funding maturing in 2012 already refinanced by last April.
The bank continues to invest and to improve its leading retail banking position, with an intensified focus on mobile and internet banking. Our upgraded client portal has been well received and monthly mobile banking transactions have overtaken internet banking transactions for the first time, testifying to an ongoing shift in client behaviour.
For the remainder of 2012 we expect markets to remain subdued, loan impairments to increase further, and banking tax to have a significant impact (approximately EUR 100 million). As before, our main focus will be on our clients, the quality of our services, cost containment, asset quality and the final elements of the integration process.”
For further information, please contact:
ABN AMRO Press Office
+31 20 6 288 900
ABN AMRO Investor Relations
+31 20 6 282 282