Net operating profit up 16.1% compared with first quarter 2004.
First quarter 2005 performance:
(compared with the first quarter of 2004, excl. Private Equity cons. effect)
- Operating income up (+2.8%) due to solid growth in the C&CC SBU and the BU Private Equity
- Operating result increased (+2.2%) due to good performances in C&CC SBU and the BU Private Equity
- Provisions significantly lower (-52.6%) driven by WCS and the BU NA
- Net operating profit up (+16.1%)
- Net profit grew strongly (+36.4%) excluding gain on sale of Bank Austria and discontinued operations
First quarter 2005 performance:
(compared with the fourth quarter of 2004, excl Private Equity cons. effect)
- Operating income relatively stable (-0.2%)
- Operating expenses down (-3.0%) due to lower expenses in WCS, Bouwfonds and Asset Management
- Operating result up (+7.1%) due to increases in WCS, Bouwfonds and Group Functions
- Provisions significantly lower (-40.7%) driven by WCS
- Net operating profit up (+5.4%), excluding results from discontinued operations and special items
Chairman's statement
"The solid growth of our net operating profit compared with the same period last year was satisfactory, as it was driven by our Consumer and Commercial Clients business, despite the much lower results from the US mortgage business. In this regard, the performances of the Business Units Netherlands, Brazil, North America and Bouwfonds were good. The increase in net operating profit was also helped by lower provisioning in Wholesale Clients and the BU North America," said Chairman of the Managing Board Rijkman Groenink. "Although the operating result improved quarter-on-quarter, returns in WCS were not adequate. Improving these returns continues to be a key priority, which is evidenced by the WCS restructuring and changes announced in December 2004, a new management team, streamlining of the WCS organisation, the increased focus on mid-market clients, growth in structured derivatives and the establishment of the Transaction Banking Group. We therefore expect the performance of WCS to improve during the year."
Source: ABN AMRO
