ABN Amro Reports Strong H1 Net Profit, Buoyed by Q1

ABN Amro net profits rose 30.5 percent during the first half of the year on modest 4.2 percent increase in revenues and higher operating expenses of 4.9 percent. The rise in profits gives way to a five-cent increase in interim dividend to 50-euro cents.

The Dutch based bank reports this morning an optimistic yet cautious view of global economy, expecting an increase of at least 10 percent in annual net profit compared to last year, excluding the profit on the sale of Bank of Asia and LeasePlan Corporation.

“Global economic conditions in the first half of 2004 improved compared to 2003, especially in the United States and Brazil, and to a lesser extent in Europe. This improvement, however, remains fragile against the backdrop of political instability, high oil prices and hence a hesitant economic recovery,” says this morning Bank Chairmen Rijkman Groenink.

“Our revenue growth is particularly encouraging considering the significant fall in our mortgage revenues in the Business Unit North America.” Mortgage revenues declined strongly to EURO 417 million.

However, below the rosy first half of the year hide softer results for the last quarter, noted by flat revenues of 0.2 percent compared to the second quarter of last year, stable operating expenses and a more modest increase of 5.7 percent in net profit.