Financial Results

ABN AMRO's Private Bank Delivers Healthy First Quarter

Amisha Mehta Reporter 14 May 2015

ABN AMRO's Private Bank Delivers Healthy First Quarter

The private banking business of Netherlands-headquartered ABN AMRO posted 70 per cent profit growth in the first three months of 2015, compared to the same period of 2014.

ABN AMRO's private banking arm boosted its underlying profit by 70 per cent year-on-year to €87 million ($99 million) in the first quarter of 2015.

Improved stock market performance saw the division's operating income jump 17 per cent to €341 million over the three months, compared to the same period last year. Within this, net interest rose €6 million to €152 million, largely thanks to higher savings volumes.

Meanwhile, the acquired German private banking activities of Credit Suisse helped drive client assets up 10 per cent from the previous quarter to €209 billion. The €3.7 billion in net new assets included transfers of retail and corporate banking clients to the private banking business.

Net fee and commission income subsequently climbed 19 per cent year-on-year to €159 million in the first quarter.

Regionally, the Netherlands accounted for 48 per cent of private banking client assets, while the rest of Europe took 43 per cent, and the rest of the world 9 per cent.

The ABN AMRO group as a whole grew its underlying net profit by 44 per cent to €543 million in the quarter, compared to €378 million in the first quarter of 2014. 

Its underlying cost/income ratio improved from 58 per cent to 56 per cent, while its common equity tier one ratio stood at 14.2 per cent.

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