ABN-AMRO Posts 35% Jump in Q1 Profit

Dutch bank ABN-AMRO, a key player in the global diamond trade, reports today (Wednesday) its eighth consecutive rise in quarterly profit with a 35 percent jump in the first quarter compared with the same period of 2003.

The bank’s net profit in the first quarter was 934 million euros ($1.11 billion) compared with 690 million euros a year earlier due to significantly lower provisions for doubtful debts.

Group revenues in the first quarter rose 5.4 percent on a year earlier which helped push operating results 11 percent higher.

“This shows once again the strength of our business mix,” said Chairman Rijkman Groenink. “We therefore confirm our outlook that 2004 will be better than 2003, with a continuing improvement in our operating performance and net profit.”

Analysts were disappointed with the results, however, having hoped for much stronger rises in key revenues to show the bank was able to increase its earnings streams and firmer comments from the bank on the outlook for the rest of this year.