ABN Amro Q2 Net Profit Drops 90% on One-Off Charges
ABN Amro Group NV reported a 90% drop in its second-quarter net profit due to one-off charges.
The Dutch bank's quarterly net profit slipped to EUR39 million ($51.8 million). The latest quarter results were affected by a EUR 216 million one-off cost for the changes to a new pension scheme and a EUR 67 million levy for SNS Reaal NV. Excluding these items, the bank's underlying profit surged 47% to EUR322 million, helped by lower impairment charges.
Net interest income gained 6% y/y in the quarter.
Its return on equity came in at 9.2% in the second quarter, versus 6.4% in the year-ago period, and compared to 10.9% in the first quarter.
Underlying loan impairments fell by EUR 164 million versus the year-ago quarter to EUR 342 million.
The bank's underlying cost/income ratio slipped by two percentage points to 59% in the first half of 2014 versus the first half of 2013.
Gerrit Zalm, Chairman of the Managing Board said, "In the second quarter, the Dutch economy showed signs of further improvement. The Dutch housing market continued to improve in the second quarter, resulting in a growing number of residential housing transactions and an on-going rise in average house prices since the middle of last year.”
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