NETHERLANDS - Dutch financial services firm ABN Amro saw assets under management undermined by economic and political uncertainties during the first three months of the year.
Total revenues decreased by 18% in Q1 to E109m, compared to the previous quarter.
ABN Amro blamed a 16.5% fall in net commissions, changes in the asset mix and margin pressure. ABN’s portfolio consisted of 43% in equities; 43% in fixed-income and 14% in cash and others.
Operating expenses fell by 12.6% to E90m. The reduction was mainly driven by a decrease of variable costs due to continued tight cost controls and bonus adjustments.
Operating results plummeted by 36.7% to E19m, as revenues fell at a higher pace than expenses.
Assets under management amounted to E148bn, a fall of 0.7% quarter-on-quarter. The composition of mandates remained stable with institutional clients making up 56%, 8% private clients and 36% funds.
Overall, ABN posted a good start to the year with pre-tax profits of E1.08bn - up 7%, compared to the last quarter, 2002. The group put the result down to a strict cost-control plan.
Rijkman Groenink, chairman, of ABN Amro, said: Performance in the first quarter was underpinned by the diversity of the income stream and the successes of the strategic restructuring processes.
“Although we are confident about our operational performance, it is difficult to be optimistic about the general state of the global economy. We will therefore continue to refrain from giving an outlook for the year.
ABN Amro share prices were down nearly 3% at the start of play Monday following the news, trading at E15.42.
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