Reported net result in Q1 2011 was EUR 539 million (Q1 2010 reported net profit: EUR 250 million)
• Reported net result in Q1 2011 was EUR 539 million (Q1 2010 reported net profit: EUR 250 million)
• Underlying net profit, which excludes separation and integration-related costs, amounted to EUR 583 million (Q1 2010 underlying net profit: EUR 314 million)
• Commercial & Merchant Banking realised good revenue growth, Retail & Private Banking maintained its solid performance, costs were kept under control and loan impairments were low
• The underlying cost/income ratio improved to 58% (71% in Q1 2010, which included high interest costs for capital instruments, fees for a credit protection instrument and litigation provisions)
• At 31 March 2011, pro forma combined core Tier 1, Tier 1 and total capital ratio under Basel II were 11.3%, 13.8% and 17.9% respectively
Gerrit Zalm, Chairman of ABN AMRO Group, comments:
“The first-quarter results give ABN AMRO a good starting point for the remainder of the year. Both Retail & Private Banking and Commercial & Merchant Banking showed good performances and continued to keep costs under control. In addition, a number of factors had a favourable impact on the first-quarter 2011 underlying results and loan impairments were low this quarter. We expect the latter to be higher going forward, partly because of ongoing international uncertainty. We also foresee pressure on interest margins going forward. Although we expect underlying profit for 2011 to be higher than last year, these first-quarter results are not be extrapolated for the remainder of the year.
ABN AMRO continues to make good progress with the integration and is on schedule for the migration of Commercial and Private Banking clients to the ABN AMRO IT platform at the end of 2011. We are aiming for minimal impact on our clients, as was the case with the retail migration carried out last year. With the initial phase of the integration behind us, we are in a position to reflect and review the targets initially set in 2009. We believe there is room for more ambitious targets in the medium term while maintaining a moderate risk profile. We intend to focus further on client satisfaction by making our processes more client-centric and more efficient. Our continuous efforts to improve efficiency will result in a reduction of staff positions, most of which we expect to be absorbed by natural attrition and a further reduction in temporary staff. These initiatives will further improve the bank’s structural profitability.”