Financial Results

ABN AMRO's Private Bank Sees 64 Per Cent Profit Hike In Q2

Amisha Mehta Assistant Editor 25 August 2015

ABN AMRO's Private Bank Sees 64 Per Cent Profit Hike In Q2

The private banking division of the Amsterdam-headquartered bank increased its profit from €44 million in the second quarter of 2014 to €72 million the following year.

ABN AMRO's private banking arm, which serves its Asian client base from offices in Hong Kong, Singapore and Dubai, drove its underlying profit up 64 per cent year-on-year to €72 million ($83 million) in the quarter to the end of June.

The growth was driven by a 14 per cent year-on-year increase in the division's operating income to €336 million. Net fee and commission income grew by €31 million, or 24 per cent compared to a year ago, to €163 million in the quarter. This was partly thanks to additional fee income from the acquired German private banking activities of Credit Suisse.

The bank said it aims to increase its international operating income to 20-25 per cent of total operating income by 2017. It currently represents 18 per cent of overall operating income, up 3 per cent from the second quarter of 2014.

Client assets, however, declined by €2.9 billion in the second quarter, to €206.1 billion at the end of June. The bank attributed this fall to weaker stock market performance.

ABN AMRO as a whole reported an 86 per cent year-on-year jump in underlying net profit to €600 million, making the three-month period its most profitable quarter since the bank's re-establishment in 2010. Its common equity tier one ratio stood at 14 per cent in the second quarter, up from 12.7 per cent the previous year.

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