ABN Amro booked 44% more profit – Financieele Dagblad (Registration)

ABN Amro has made an underlying profit in the first three months of this year of € 543 million, an increase of 44% over the same period a year earlier.

That is the state bank with purse ambitions Wednesday. The increase is primarily due to an increase in interest income and fee income. ABN Amro had to considerably less set aside as a provision for bad loans.

• In the first quarter of 2015, underlying net profit by 44% compared to the same quarter in 2014.

• The underlying cost / income ratio improved from 58% to 56%

• The underlying return on equity improved from 11% to 14%

• Loan impairments decreased by 30%

• The CET1 ratio at a full implementation of Basel III was on 14.2%

Highest result

According to CEO Gerrit Zalm, ABN Amro, the highest result achieved in sixteen quarters. He noted that the economic recovery in the Netherlands led to a decrease in the number of bankruptcies, lower unemployment and lower inflows to the Management department of the bank.

Salmon in the quarterly report refers also to the commotion about the compensation of the board of directors of the bank. “We deplore the increase of the fixed salary and the impact it has had on the bank, customers, employees and other stakeholders sincerely ‘said Salmon.

Services

The net interest margin of ABN Amro came in the first quarter at 148 basis points, the same as a year earlier and less than the previous quarter. The interest margin is the difference between what the bank spends to attract money and what it gives off it.

The provisions on bad loans fell sharply, from € 361 million to € 252 million. The decrease was mainly due to an improvement in the mortgage book. On business loans provisioning increased by € 20 million, mainly due to a major provision in one big loan.

The amount of loans expanded to companies increased by € 2.9 billion increase. Which was partly due to currency effects and partly through additional borrowings, particularly at the ECT part. “For the first time in two years we see a cautious increase in the number of credit applications by small businesses,” as signals ABN Amro.