THE NETHERLANDS/GLOBAL - Dutch financial service group, ABN AMRO, lifted market expectations with its first quarter results despite a 42% slump in net profits.
In what was described by the firm as a “satisfactory” quarter, ABN posted net profits of EUR397m, compared with EUR683m for the corresponding period, 2001.
Commenting, the firm’s chairman, Rijkman Groenink, said: Although the economic conditions have improved during the first few months of the year, the overall state of the economy remains sluggish and unpredictable.
“Under these circumstances, some of our businesses have performed well. Our focus on cost management has enabled us to reduce our operating expenses and improve the efficiency ratio. As such, this performance has allowed us to deliver an operating performance in line with our outlook.”
He added that given the uncertain market conditions, ABN remained “cautious about the remainder of the year.
The firm showed resilience in its asset gathering businesses. Asset management showed relatively stable revenues, decreasing by EUR3m to EUR4m, compared with Q1, 2001.
Net profits were up to EUR19m, over 2001’s Q1 figure of EUR14m, and the Q4 2001 figure of EUR13m.
But assets under management remained largely flat at EUR175bn, an increase of only 1.7% compared to EUR172bn at the end of 2001.
The composition by mandates at the end of the quarter was 50% institutional clients, 10% private clients, and 40% funds.
By Madhu Kalia
The Pensions Regulator (TPR) and Labour MP Stephen Kinnock and will listen to the experiences of steelworkers when transferring their pensions away from the British Steel Pension Scheme (BSPS) next week in Port Talbot.
Just Group has acquired a 75% stake in the holding company of Corinthian Pension Consulting in a bid to strengthen its professional defined benefit (DB) advisory services.
The Pensions Regulator (TPR) has exercised its production order power under the Proceeds of Crime Act 2002 for the very first time as part of a fraud investigation.
The ITN Limited Pension Scheme has named Trafalgar House as its administrator for an initial term of five years.