The private banking arm of ABN AMRO reported that assets under management rose by €5.8 billion ($7.7 billion) to €176.4 billion at the end of June this year compared with end-2013.

The private banking arm of ABN AMRO, the Netherlands-headquartered bank, said assets under management rose by €5.8 billion ($7.7 billion) to €176.4 billion at the end of June this year compared with end-2013, mainly driven by net inflows and stronger markets.

This part of the bank logged an underlying profit of €40 million in the second quarter of the year, a year-on-year fall of 11 per cent; it fell 21 per cent from the previous quarter, the bank said in a statement today.

The fall in underlying profit was caused by a “very low tax rate” in the second quarter of last year, the bank said. Operating results and impairments were unchanged, it said.

Net fee and commission income remained virtually unchanged at €133 million. Net fees for the international activities increased, while net fees in the Netherlands were slightly lower due to the switch to an all-in fee model as well as fewer investment transactions. Operating income, meanwhile, rose 3 per cent year-on-year to €311 million, the bank said.

The cost/income ratio of the private bank was 76 per cent at the end of the second quarter, compared with 75 per cent in the previous quarter, and a year ago.

For the banking group as a whole, underlying net profit increased by €103 million, or 47 per cent, compared with the same quarter of 2013. Reported profit was €39 million, plunging from €402 million, affected by two special items, a €216 million one-off cost for the transition to a new pension scheme and a €67 million levy for SNS Reaal, it said.