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 government is in talks with the UK and Irish pensions regulators over how to protect members of cross-border schemes in the event of a no-deal Brexit.
The equalisation of guaranteed minimum pensions (GMPs) is at least two years away from being completed, and could take longer than four years for some schemes, a poll has found.
The Pensions Regulator will consider if schemes should be required to have professional trustees and assess the case for greater regulation of administrators and system providers, PP can reveal.
UK inflation fell from 2.3% to 2.1% in December, approaching its lowest rate for two years, according to the Office for National Statistics (ONS).