ABN AMRO reports first half 2005 results (NL)

First half 2005 performance:
(compared with first half of 2004 excl. Private Equity cons. effect)

  • Total operating income increased (+8.1%) due to revenue growth across C&CC
  • Total operating expenses up (+7.2%) mainly as a consequence of higher costs in the BU Brazil and BU NL
  • Provisions down significantly (-48.2%) mainly as a result of releases in WCS
  • Net operating profit higher (+16.5%) driven by the strength of C&CC
  • Net profit up (+9.8%) to €1,882 mln
  • Return on equity 22.3%, despite the increase in equity due to the pre-funding of the intended acquisition of Banca Antonveneta
  • Interim dividend 2005 set at 50 euro cents

Second quarter 2005 performance:
(compared with first quarter of 2005 excl. Private Equity cons. effect)

  • Total operating income up (+8.9%) due to improved performances of C&CC and WCS
  • Provisions lower (-37.4%) as a consequence of releases in Group Functions and WCS
  • Net operating profit increased (+9.8%) mainly due to higher profits in WCS
  • Net profit up (+10.3%) to €987 mln

Chairman's Statement
"Over the past five years we have tightened our strategic focus and applied greater discipline in making the right choices for sustainable profitable growth. Our good results in the first half of 2005 are an encouraging sign of the success of our approach. Our revenues increased significantly, mainly driven by growth in each of the areas of our Consumer and Commercial Clients Strategic Business Unit, especially the BU Brazil andthe BU NL. The resulting 9.8% growth in our net profit reflects not only the strong positions of our consumer and commercial businesses, but also reflects the benefits of our strategic focus on mid-market segments."

"We expect net profit for the second half of the year (excluding incidental items such as the sale of Real Seguros in Brazil and the sale of Nachenius Tjeenk & Co) to be lower than the first half, as we expect the underlying revenue growth of our consumer and commercial business units to be more than offset by lower income from Asset and Liability management and as overall provisions will increase. Our market positions remain strong, and with our focus on mid-market segments and our disciplined capital management, we continue to see opportunities to deliver an attractive return on equity."

Full report on www.abnamro.com

Source: ABN AMRO

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