The private banking arm of ABN AMRO made a profit of €63 million (just under $79 million) in the six months ended 30 June, down by nearly half from €116 million for the first half of 2011.

The private banking division's operating income of €567 million for the first half of the year represented a 7 per cent decrease on the same period last year.

The Dutch bank said net fee and commission income fell by 20 per cent as a result of volatile stock markets and structurally lower fee income after the divestment of its private banking activities in Switzerland.

Assets under Management at the bank stood at €155 billion at the end of June, up by €8.6 million compared with a year earlier. The bank attributed the lift to improved market performance of the securities portfolios and net new assets of €2.3 billion, mainly in international private banking.

The private banking segment at the bank comprises operations in the Netherlands under the ABN AMRO MeesPierson brand and internationally under the name ABN AMRO Private Banking, as well and local brands such as Banque Neuflize OBC in France, Bethmann Bank in Germany and the International Diamond & Jewelry Group.

Across its divisions, ABN AMRO reported an underlying net profit of €827 million for the first half of 2012, down from €974 million for the same period in 2011.