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ABN AMRO posts Q1 profit , sees huge Q2 loss

ABN AMRO posts Q1 profit , sees huge Q2 loss
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First Published: Thu, May 20 2010. 12 18 PM IST
Updated: Thu, May 20 2010. 12 18 PM IST
Amsterdam: Nationalised Dutch bank ABN Amro Group forecast more than €1 billion in second-quarter charges on Thursday, offsetting profitable results from both its units in the first quarter.
The group forecast restructuring charges this quarter of €475 million ($590 million) pretax and losses of 800-900 million, net of tax, for EU-mandated asset sales. It also predicted a rise in loan loss provisions.
ABN had said in March it would post a loss for this year on those charges.
The Dutch government nationalised the local operations of former Belgian concern Fortis in October 2008, which included both banks. It has spent more than €26 billion on the nationalisation and subsequent support, making it one of the world’s costliest rescues due to the credit crisis.
The two banks will be legally merged in the third quarter, though the group does not expect the actual operational merger to be completed until late 2011. The government is expected to privatise the group in 2013 or later.
The group said ABN Amro Bank’s first-quarter net income more than doubled to €178 million. Loan impairments and other credit provisions fell more than 80% to €45 million, while savings volumes rose at higher margins than last year.
Fortis Bank Nederland swung to a profit of €73 million from a year-earlier loss, as it also saw higher margins and avoided the negative hedging results of a year earlier.
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First Published: Thu, May 20 2010. 12 18 PM IST