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30th August 2011

ABN in profit and more expense cuts

ABN Amro reported a first half net PROFIT of €864m (£765m $1,244m ¥95.4bn Y7,948m) compared with a year ago LOSS of €968m. Main operational income lines were better except for trading which was down marginally. The main influencers were the lack of 'other losses' that occurred in the year ago period, significantly lower expenses as the restructure has bitten and a modest improvement in credit losses.


Despite the significant reduction in operating expenses and the return to profit ABN also announced further expense reductions. It is to cut 2,350 jobs over the next three to four years. Most cuts are expected to be in the Netherlands. It paid its first dividend in a long while.


Half year income summary 2011 2010 Change
€m €m %
Interest income 6,903 6,545 5
Interest expense 4,337 4,109 6
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Net interest income 2,566 2,436 5
Net fee and commission income 973 935 4
Net trading income 119 121 -2
Results from financial transactions 269 17 >
Equity accounted investments 46 21 119
Other income 137 -693 --
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Operating income 4,110 2,837 45

Personnel expenses 1,388 1,611 -14
General and administrative expenses 1,172 1,520 -23
Depreciation &amortisation of tangible assets 184 259 -29
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Operating expenses 2,744 3,390 -19
Loan impairments 310 348 -11
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Operating profit before taxes 1,056 -901 --
Income tax expenses 192 67 >
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Profit for the period 864 -968 --
Non-controlling interests 8 2 >
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Attributable to shareholders of the company 856 -970 --