ABN AMRO: Satisfying Results in Transition Year 2000.Business Editors AMSTERDAM Amsterdam, city, Netherlands Amsterdam (ăm`stərdăm', Dutch ämstərdäm`), city (1994 pop. 724,096), constitutional capital and largest city of the Kingdom of the Netherlands, North Holland prov. , The Netherlands--(BUSINESS WIRE)--Feb. 22, 2001 ABN AMRO ABN AMRO Algemene Bank Nederland-Amsterdam Roterdam Bank (Dutch bank) (NYSE NYSE See: New York Stock Exchange : ABN ABN Advance beneficiary notice, see there ), a leading international banking group, today announced: - In the first half of 2000, ABN AMRO undertook a wide-ranging strategic review, resulting in a new client focused strategy and organization structure. As of 1 January 2001 the old structure was replaced by three new strategic business units: Consumer & Commercial Clients, Wholesale Clients and Private Clients & Asset Management. In addition, in 2000 ABN AMRO has established maximizing shareholder value as its over-riding governing objective. In line with this new objective ABN AMRO has set itself new and challenging financial goals, based on achieving a Total Return to Shareholders result that would give it a top 5 position within a demanding set of peers. - In line with the new strategy, ABN AMRO strengthened its asset management position in the United States by acquiring Alleghany Asset Management as announced in October 2000. Similarly, through the acquisition of Michigan National Corporation our position in the MidWest of the United States will be enhanced substantially. In January 2001 ABN AMRO has strengthened its wholesale position in the United States by acquiring the North American prime brokerage, corporate finance, domestic equities and futures and options businesses of ING Barings. In February 2001, ABN AMRO sold European American Bank in order to be able to focus on the profitable retail growth opportunities in the MidWest of the United States. All acquisitions will be completed in the first half of 2001, and will be financed through the disposal of European American Bank (related realized gain on book value will not be regarded as part of attributable profit) and other internal sources. - The figures reported are the bank's final results under its old divisional structure. As a result of the new strategy announced last May, a restructuring charge of EUR 800 million (before tax) was announced in the second half of 2000. The actual charge is EUR 100 million higher than the amount indicated in August 2000, largely because of further restructuring measures - specifically in the Business Unit Netherlands within Consumer & Commercial Clients - that subsequently were identified as necessary. - Net profits (excl. restructuring charge) in 2000 grew to EUR 3,097 million which was due to a combination of an increased operating result and a decrease in provisioning, a lower tax rate and a decrease in minority interests. Including the restructuring charge, net profits were down 2.8% at EUR 2,498 million. - Excluding restructuring charge, earnings per share increased by 18.6% and return on equity rose from 23.7% in 1999 to 26.5% in 2000. The bank surpassed therewith its indirect targets of average earnings per share growth of 17% and average return on equity of 25% for the period 2001 - 2004. - Total revenues rose 18.9% to EUR 18,469 million. The increase was partly due to another sharp increase in commission income resulting from high volumes in world financial markets, especially in the first half, which benefited our securities businesses. - Operating expenses were up 24.4% at EUR 13,202 million, largely because of investment in hiring and retaining professionals to further strengthen the new Wholesale Clients business and the North American restructuring charge of EUR 108 million. As a result, the group efficiency ratio worsened from 68.3% to 71.5%. - The total amount of risk provisioning fell from EUR 633 million to EUR 585 million (including cross-border risks provisioning), representing 22 basis points of total risk-weighted assets. - Total pre-tax profit was up by 11.2%. Pre-tax profit in the International Division showed a strong performance, increasing year-on-year by 21.5%. However, pre-tax profit in The Netherlands was disappointing, partly due to positive exceptional items in 1999, partly because of structural developments like a flattening yield curve and decreasing margins in The Netherlands in 2000. (a) Excluding restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings.
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(in EUR and %) 2000 1999 % change
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Operating result EUR 5,267 m 4,918 m 7.1%
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Pre-tax profit EUR 4,725 m 4,250 m 11.2%
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Net profit, excluding
restructuring charge EUR 3,097 m 2,570 m 20.5%
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Net profit, including
restructuring charge EUR 2,498 m 2,570 m -2.8%
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Earnings per share,
excluding
restructuring
charge EUR 2.04 1.72 18.6%
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Earnings per share,
including
restructuring
charge EUR 1.63 1.72 -5.2%
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Dividend per
ordinary share EUR 0.90 0.80 12.5%
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31 Dec 2000 31 Dec. 1999
Total assets EUR 543.2 bn 457.9 bn 18.6%
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Group capital EUR 32.5 bn 28.9 bn 12.6%
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Total risk-weighted
assets EUR 263.9 bn 246.4 bn 7.1%
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BIS ratio 10.39% 10.86%
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Tier 1 ratio 7.20% 7.20%
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Results overview - In the first half of 2000, ABN AMRO undertook a wide-ranging strategic review, resulting in a new client focused strategy and organization structure. As of 1 January 2001 the old structure was replaced by three new strategic business units: Consumer & Commercial Clients, Wholesale Clients and Private Clients & Asset Management. In addition, in 2000 ABN AMRO has established maximizing shareholder value as its over-riding governing objective. In line with this new objective ABN AMRO has set itself new and challenging financial goals, based on achieving a Total Return to Shareholders result that would give it a top 5 position within a demanding set of peers. - In line with the new strategy, ABN AMRO strengthened its asset management position in the United States by acquiring Alleghany Asset Management as announced in October 2000. Similarly, through the acquisition of Michigan National Corporation our position in the MidWest of the United States will be enhanced substantially. In January 2001 ABN AMRO has strengthened its wholesale position in the United States by acquiring the North American prime brokerage, corporate finance, domestic equities and futures and options businesses of ING Barings. In February 2001, ABN AMRO sold European American Bank in order to be able to focus on the profitable retail growth opportunities in the MidWest of the United States. All acquisitions will be completed in the first half of 2001, and will be financed through the disposal of European American Bank (related realized gain on book value will not be regarded as part of attributable profit) and other internal sources. - The figures reported are the bank's final results under its old divisional structure. As a result of the new strategy announced last May, a restructuring charge of EUR 800 million (before tax) was announced in the second half of 2000. The actual charge is EUR 100 million higher than the amount indicated in August 2000, largely because of further restructuring measures - specifically in the Business Unit Netherlands within Consumer & Commercial Clients - that subsequently were identified as necessary. - Net profits (excl. restructuring charge) in 2000 grew to EUR 3,097 million which was due to a combination of an increased operating result and a decrease in provisioning, a lower tax rate and a decrease in minority interests. Including the restructuring charge, net profits were down 2.8% at EUR 2,498 million. - Excluding restructuring charge, earnings per share increased by 18.6% and return on equity rose from 23.7% in 1999 to 26.5% in 2000. The bank surpassed therewith its indirect targets of average earnings per share growth of 17% and average return on equity of 25% for the period 2001 - 2004. - Total revenues rose 18.9% to EUR 18,469 million. The increase was partly due to another sharp increase in commission income resulting from high volumes in world financial markets, especially in the first half, which benefited our securities businesses. - Operating expenses were up 24.4% at EUR 13,202 million, largely because of investment in hiring and retaining professionals to further strengthen the new Wholesale Clients business and the North American restructuring charge of EUR 108 million. As a result, the group efficiency ratio worsened from 68.3% to 71.5%. - The total amount of risk provisioning fell from EUR 633 million to EUR 585 million (including cross-border risks provisioning), representing 22 basis points of total risk-weighted assets. - Total pre-tax profit was up by 11.2%. Pre-tax profit in the International Division showed a strong performance, increasing year-on-year by 21.5%. However, pre-tax profit in The Netherlands was disappointing, partly due to positive exceptional items in 1999, partly because of structural developments like a flattening yield curve and decreasing margins in The Netherlands in 2000. Outlook We made a good start with the intra-SBU cost and revenue synergies as predicted in November November: see month. . At this stage, we are confident that these synergies will be achieved across the new businesses, and that we are on course to reaching our primary objective of being in the top 5 of our peer set at the end of 2004. By the same token In programming, a string of characters. For example, in the C expression #define MAXAMOUNT 50000, MAXAMOUNT is the token. See also token passing and authentication token. 1. , we are also confident that our results in 2001 will be in line with this objective. However, given the uncertain economic outlook and changing market conditions it is too early in the year to give a more quantitative outlook. Statement by the Chairman of the Board Rijkman Groenink, Chairman of the Managing Board, commented: "In a period of transition for the bank, we have already made the first steps in the execution of our strategy by rationalizing and strengthening specific parts of our business, while at the same time maintaining the basic franchises and profitability of the group. We are visibly focusing on those activities that create maximum shareholder value. However, we know that there is still much room for improvement in delivering value to our clients and shareholders." "Despite the period of transition for the bank, we have succeeded in achieving a good result in 2000. Our employees have shown flexibility and dedication in periods of stress and uncertainty. 2001 is the first year of our new strategy and in the coming months we will take further steps in implementing the changes it requires. This will inevitably lead to further rationalization rationalization, in psychology: see defense mechanism. of the bank and thus also to job losses. Although these are tough decisions to make, they have to be made in order to strengthen our competitiveness and stay in charge over our own destiny Destiny goddess of destiny of mankind. [Gk. Myth.: Kravitz, 78] See : Fate ". "We have a sharper focus than ever before on meeting the needs of our target customers. We have a management system in place which enhances accountability The traceability of actions performed on a system to a specific system entity (user, process, device). For example, the use of unique user identification and authentication supports accountability; the use of shared user IDs and passwords destroys accountability. for performance throughout the organization. And we have a new, disciplined approach to channeling capital, people and resources towards activities that clearly add value for our clients and investors". Details of 2000 results Total revenue increased by 18.9% to EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 18,469 million. Much of the rise was due to a 32.0% rise in net commissions to EUR 5,880 million, mainly from securities, payment services and asset management activities. Income from financial transactions - principally forex and derivatives derivatives In finance, contracts whose value is derived from another asset, which can include stocks, bonds, currencies, interest rates, commodities, and related indexes. Purchasers of derivatives are essentially wagering on the future performance of that asset. trading - was up 14.2% at EUR 1,569 million. Interest revenue, which was constrained con·strain tr.v. con·strained, con·strain·ing, con·strains 1. To compel by physical, moral, or circumstantial force; oblige: felt constrained to object. See Synonyms at force. 2. by the narrowing margin between short and long term interest rates worldwide - grew 8.3% to EUR 9,404 million. In addition, in 1999 interest income was influenced by non-recurring income from duration related sales out of our investment portfolio. Other revenue rose 78.1% to EUR 1,165 million, a.o. due to increased revenues from mortgage servicing Mortgage servicing The collection of monthly payments and penalties, record keeping, payment of insurance and taxes, and possible settlement of default , involved with a mortgage loan. rights in the US and the consolidation of the property development activities of Bouwfonds. Adjusted for currency translation and acquisitions (notably Bouwfonds and Dial), revenues rose 10.5%. Operating expense Operating Expense The essential things that a company must purchase in order to maintain business. Notes: For example, the payment of employees wages are an operating expense. Also known as OPEX. rose by 24.4% to EUR 13,202 million, mainly due to new hirings and performance-related bonuses in wholesale banking and the cost of restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. wholesale banking in the first half. Our investment in recruiting and retaining high caliber professionals supports our strategy of strengthening product and relationship management capabilities in areas directly relevant to our selected wholesale clients. Adjusted for currency translation, acquisitions and restructuring costs wholesale banking North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , expenses were up 13.9%. As a result, the group efficiency ratio was 71.5%, compared with 68.3% in 1999.
Provisioning for loan losses / Fund for general banking risks
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(in EUR million and %) 2000 1999 % change
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Specific bad debt provisioning 814 678 20.1%
Cross-border risks provisioning -197 -25
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Total specific provisioning 617 653 -5.5%
Release from fund for general
banking risks -32 -20
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Total amount charged to the
income statement 585 633 -7.6%
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The total amount of provisioning for loan losses (and addition to the Fund for General Banking Risks, FAR) fell from EUR 633 million to EUR 585 million, representing 22 basis points of total risk-weighted assets Risk-Weighted Assets In terms of the minimum amount of capital that is required within banks and other institutions, based on a percentage of the assets, weighted by risk. Notes: The idea of risk-weighted assets is a move away from having a static requirement for capital. . Total specific provisioning decreased by 5.5% to EUR 617 million, resulting on the one hand from increases in provisioning in the US and Thailand Thailand (tī`lănd, –lənd), Thai Prathet Thai [land of the free], officially Kingdom of Thailand, constitutional monarchy (2005 est. pop. 65,444,000), 198,455 sq mi (514,000 sq km), Southeast Asia. and on the other hand from further releases in cross-border risks Cross-border risk Describes the volatility of returns on international investments caused by events associated with a particular country as opposed to events associated solely with a particular economic or financial agent. provisions, based on individual assessment of country risks and partly due to a change in methodology. There was a release of EUR 32 million from the FAR, to maintain it at the level of 0.50% of risk-weighted assets. Our portfolio is well diversified diversified (di·verˑ·s across regions, market segments and industry sectors. Asset quality is satisfactory with overall 89% investment grade. Our Telecoms industry limits are for 81% investment grade; Automotive for 89%. Although some internal ratings migration is noticeable in USA, reflecting the economic slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. , we are confident about the overall quality of our US portfolio at our domestic banks and our US branches. Pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta profit increased by 11.2% to EUR 4,725 million. Adjusted for acquisitions, currency translation and the cost of restructuring North American wholesale banking, pre-tax profit rose 6.6%. Group profit after taxes rose 16.1% to EUR 3,401 million. The effective tax rate was 28.0%, down from 31.1% in 1999, as a result of tax exempted profits on the sale of participating interests and the release of tax provisions. Minority interests fell 15.6% to EUR 304 million, partly due to the reduced interest of external shareholders in Banco Real Banco Real is a Brazilian bank, owned by ABN AMRO. The consortium led by Royal Bank of Scotland is in the process of acquiring ABN AMRO, and will dismember it, with Spain's Banco Santander getting Banco Real. . Return on equity rose to a new high for the bank of 26.5% (excluding restructuring charge), from 23.7% in 1999. Including the restructuring charge, return on equity amounted to 21.2%. Balance sheet and group equity at 31 December December: see month. 2000 Total assets increased by 18.6% (EUR 85.3 billion) over 31 December 1999 to EUR 543.2 billion. Adjusted for currency translation and acquisitions total assets grew by EUR 54.1 billion (11.8 %).
Capital and BIS ratios
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(in EUR million and %) 31 December 31 December % change
2000 1999
Shareholders' equity 12,523 11,987 4.5%
Total qualifying capital 27,421 26,764 2.5%
of which tier 1 capital 19,010 17,735 7.2%
Total risk-weighted assets 263,853 246,374 7.1%
BIS ratio 10.39% 10.86%
Tier 1 ratio 7.20% 7.20%
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Shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. has risen 4.5% since 31 December 1999 to EUR 12,523 million, largely because of retained profit. Total risk-weighted assets increased by only 7.1%, to EUR 263.9 billion from EUR 246.4 billion at the end of 1999. Excluding acquisitions and currency translation, risk-weighted assets remained at the 1999 level. Despite the paid goodwill related to the acquisitions in 2000 (e.g. Bouwfonds and Dial) of EUR 1,453 million and the restructuring charge of EUR 900 million, the Tier 1 capital Tier 1 Capital A term used to describe the capital adequacy of a bank. Tier I capital is core capital, this includes equity capital and disclosed reserves. Notes: Equity capital includes instruments that can't be redeemed at the option of the holder. ratio remained strong at 7.20%. The impact of goodwill related to the acquisitions of Michigan Michigan (mĭsh`ĭgən), upper midwestern state of the United States. It consists of two peninsulas thrusting into the Great Lakes and has borders with Ohio and Indiana (S), Wisconsin (W), and the Canadian province of Ontario (N,E). National Corporation and Alleghany Asset Management in 2001 and the acquisition of parts of the North American businesses of ING Barings on the Tier 1 ratio will be off-set by the sale of European American A European American (Euro-American) is a person who resides in the United States and is either the descendant of European immigrants or from Europe him/herself.[1] Overall, as the largest group, European Americans have the lowest poverty rate [2] Bank (related realised gain on book value will not be regarded as part of attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk profit) and retained earnings Retained Earnings The percentage of net earnings not paid out in dividends, but retained by the company to be reinvested in its core business or to pay debt. It is recorded under shareholders equity on the balance sheet. . As a result ABN AMRO will not have to issue new shares for the financing of these acquisitions. Results by Division This is the final year in which ABN AMRO will report its results according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. its old structure, which comprised the Netherlands Netherlands (nĕth`ərləndz), Du. Nederland or Koninkrijk der Nederlanden, officially Kingdom of the Netherlands, constitutional monarchy (2005 est. pop. 16,407,000), 15,963 sq mi (41,344 sq km), NW Europe. , International and Investment Banking Divisions. As of 1 January January: see month. 2001, the bank has been organized into three strategic business units based around distinct client segments - Consumer & Commercial Clients, Wholesale Clients and Private Clients & Asset Management - and from 2001 will report its results along these lines (see annex an·nex tr.v. an·nexed, an·nex·ing, an·nex·es 1. To append or attach, especially to a larger or more significant thing. 2. 3).
Netherlands Division
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(in EUR million and %) 2000 1999 % change
Net interest revenue 2,757 2,888 -4.5%
Net commissions 1,036 894 15.9%
Results from financial
transactions 35 67 -47.8%
Other revenue 185 140 32.1%
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Total revenue 4,013 3,989 0.6%
Operating expenses 2,859 2,511 13.9%
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Operating result 1,154 1,478 -21.9%
Provisioning for loan
losses 96 83 15.7%
Value adjustments to
financial fixed assets -25 26
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Pre-tax profit 1,083 1,369 -20.9%
Efficiency ratio 71.2% 62.9% 13.2%
Number of employees (FTE) 26,132 26,057
Number of branches and offices 863 915
(in EUR billion and %) 31 December 31 December
2000 1999
Total assets 119.4 bn 99.9 bn 19.5%
Total risk-weighted assets 83.2 bn 76.5 bn 8.8%
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Pre-tax profit fell 20.9% to EUR 1,083 million. Revenues - which were positively impacted in 1999 by duration related sales out of the investment portfolio - grew 0.6% to EUR 4,013 million in 2000. There was a healthy rise of 15.9% in net commissions, particularly in the securities business, while net interest revenue declined by 4.5% because of the flattening
The flattening, ellipticity, or oblateness of an oblate spheroid is the "squashing" of the spheroid's pole, down towards its equator. yield curve, tighter margins and the above mentioned nonrecurring Non`re`cur´ring a. 1. Nonrecurrent; as, the costs of a layoff are considered as a nonrecurring expense s>. items that positively impacted 1999 figures. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. rose by 13.9%, largely as a result of increased investment in the multi-channel See multichannel. platform and e-commerce e-commerce, commerce conducted over the Internet, most often via the World Wide Web. E-commerce can apply to purchases made through the Web or to business-to-business activities such as inventory transfers. , especially the pan-European online brokerage BROKERAGE, contracts. The trade or occupation of a broker; the commissions paid to a broker for his services. service. The efficiency ratio rose to 71.2% from 62.9% in 1999, but is expected to fall as a result of the rationalization programs of the Netherlands business. Credit quality remains excellent as provisioning for loan losses rose by a mere EUR 13 million to EUR 96 million. ABN AMRO's Consumer & Commercial Clients Business Unit Netherlands - one of the top three in the retail banking market - operates in a mature market. In order to reinforce its leading position in this market dealing with newcomers/nicheplayers, eroding margins and increasing differentiation of consumer behavior, ABN AMRO has decided to drastically dras·tic adj. 1. Severe or radical in nature; extreme: the drastic measure of amputating the entire leg; drastic social change brought about by the French Revolution. 2. review its client service concept, in order to provide better access to its services, products and professional know how. Full alignment Alignment is the adjustment of an object in relation with other objects, or a static orientation of some object or set of objects in relation to others.
International Division
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(in EUR million and %) 2000 1999 % change
Net interest revenue 5,805 4,961 17.0%
Net commissions 2,193 1,706 28.5%
Results from financial
transactions 344 403 -14.6%
Other revenue 801 446 79.6%
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Total revenue 9,143 7,516 21.6%
Operating expenses 5,971 4,814 24.0%
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Operating result 3,172 2,702 17.4%
Provisioning for loan losses 557 541 3.0%
Value adjustments to financial
fixed assets -10 -
--- ----- -
Pre-tax profit 2,625 2,161 21.5%
Pre-tax profit per region
Europe 539 353 52.7%
North America 1,156 1,099 5.2%
Latin America and
the Caribbean 633 576 9.9%
Asia / Pacific 239 185 29.2%
Middle East and Africa 58 -52
Efficiency ratio 65.3% 64.1% 1.9%
Number of employees (FTE) 59,324 58,351
Number of branches and offices 2,604 2,606
(in EUR billion and %) 31 December 31 December
2000 1999
Total assets 197.9 bn 180.2 bn 9.8%
Total risk-weighted assets 118.1 bn 114.8 bn 2.9%
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Another period of strong revenue growth in most of our major markets pushed pre-tax profit up 21.5% to EUR 2,625 million. Total revenue rose 21.6% to EUR 9,143 million, boosted by strong growth of 28.5% in net commissions - mainly from the payments and securities businesses - and a 17.0% rise in net interest revenue, while results from financial transactions declined 14.6%. Other revenue increased by 79.6%, mainly due to increased revenues from mortgage servicing rights in the US. Adjusted for currency translation, total revenue was up 11.3%. Operating expenses were up 24.0%, partly because of higher performance-related bonuses in corporate banking. Adjusted for currency translation, expenses rose 12.0%. The efficiency ratio rose to 65.3%, from 64.1% in 1999. Provisioning for loan losses was only 3.0% higher, as the overall quality of the bank's international assets remained high. Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). continued its strong performance of the first six months:
pre-tax profit rose by 52.7% to EUR 539 million. Results grew strongly
across the region, notably France, Switzerland Switzerland (swĭt`sərlənd), Fr. Suisse, Ger. Schweiz, Ital. Svizzera, officially Swiss Confederation, federal republic (2005 est. pop. 7,489,000), 15,941 sq mi (41,287 sq km), central Europe. , UK and some Eastern
European Europeanemanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. countries. Asset quality remained high. North America showed good operational growth (13.4%). However, pre-tax profit was held back by increased provisioning (to a level of 0.29% of risk weighted assets) and a loss on the Dollar hedge. We are confident about the overall quality of our US portfolio at our domestic banks and our US branches. Pre-tax profit in Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. and the Caribbean grew 9.9% to EUR 633 million. Net profit increased substantially due to a significant reduction in minority interests in Banco Real (from 30% to 5%). Specific provisioning was slightly lower than in 1999. Pre-tax profit in Asia/Pacific climbed 29.2% to EUR 239 million, with especially strong growth in operating profits Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. in Thailand and Taiwan Taiwan (tī`wän`), Portuguese Formosa, officially Republic of China, island nation (2005 est. pop. 22,894,000), 13,885 sq mi (35,961 sq km), in the Pacific Ocean, separated from the mainland of S China by the 100-mi-wide (161-km) Taiwan . However, specific provisioning increased as a result of disappointing developments in asset quality, notably in Thailand. The Middle East and Africa region turned around from a pre-tax loss of EUR 52 million in 1999 to a pre-tax profit of EUR 58 million, mainly because incidental Contingent upon or pertaining to something that is more important; that which is necessary, appertaining to, or depending upon another known as the principal. Under Workers' Compensation statutes, a risk is deemed incidental to employment when it is related to whatever a bad debt provisioning incurred in 1999 was not repeated in 2000.
Investment Banking Division
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(in EUR million and %) 2000 1999 % change
Net interest revenue 502 640 -21.6%
Net commissions 2,491 1,739 43.2%
Results from financial
transactions 1,189 904 31.5%
Other revenue 232 187 24.1%
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Total revenue 4,414 3,470 27.2%
Operating expenses 3,793 2,880 31.7%
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Operating result 621 590 5.3%
Provisioning for loan losses 104 34 205.9%
Value adjustments to financial
fixed assets -8 9
-- --
Pre-tax profit 525 547 -4.0%
Efficiency ratio 85.9% 83.0% 3.5%
Number of employees (FTE) 12,248 10,901
Number of branches and offices 104 68
(in EUR billion and %) 31 December 31 December
2000 1999
Total assets 199.6 bn 169.3 bn 17.9%
Total risk-weighted assets 43.7 bn 47.2 bn -7.4%
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Pre-tax profit fell 4.0% to EUR 525 million. It was impacted by a EUR 108 million charge for restructuring the North American wholesale banking business, which was included in the International Division in the half-year figures and has been reallocated for the full-year to the Investment Banking Division. Without this charge, profits would have increased 15.7% to EUR 633 million. Total revenue - which was positively impacted in 1999 by duration related sales out of the investment portfolio - was up 27.2% at EUR 4,414 million, with net commissions increasing 43.2%. Results from financial transactions rose 31.5%, on the back of a very good performance in derivatives trading while net interest revenue declined by 21.6% because of the flattening yield curve, tighter margins and the above mentioned nonrecurring items that positively impacted 1999 figures. Structured Finance, Private Equity and Asset Management achieved strong growth. Asset Management increased its assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. by 13.7% to EUR 128.4 billion. The increase was mainly generated through autonomous growth, rather than through acquisitions. In spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite falling markets, institutional assets grew by 10.5% to EUR 51.6 billion while assets managed for individual clients and in mutual funds grew by 16.0% to EUR 76.8 billion. Operating expenses increased 31.7%, because of the North American restructuring charge, higher recruitment costs and performance-related bonuses. The efficiency ratio rose slightly to 85.9%, from 83.0% in the previous year. Further rationalisation Noun 1. rationalisation - (psychiatry) a defense mechanism by which your true motivation is concealed by explaining your actions and feelings in a way that is not threatening rationalization of the Wholesale Clients business in The Netherlands will help improve future efficiency. They involve substantial cost savings of approximately EUR 100 mln from 2003 onwards on·ward adj. Moving or tending forward. adv. also on·wards In a direction or toward a position that is ahead in space or time; forward. Adv. 1. (on top of the cost savings already announced in November 2000) in IT and operations, Global Financial Markets and Global Transaction Services, and a total reduction of 770 jobs. Provisioning for loan losses increased to EUR 104 million in 2000, from EUR 34 million in 1999. This was mainly caused by the higher provisioning for wholesale clients from the US, which form part of this division following the reorganisation Noun 1. reorganisation - the imposition of a new organization; organizing differently (often involving extensive and drastic changes); "a committee was appointed to oversee the reorganization of the curriculum"; "top officials were forced out in the cabinet of these businesses in 2000. Dividend It will be proposed to the general meeting of shareholders to declare TO DECLARE. To make known or publish. By tho constitution of the United States, congress have power to declare war. In this sense the word, declare, signifies, not merely to make it known that war exists, but also to make war and to carry it on. 4 Dall. 37; 1 Story, Const. Sec. a dividend of EUR 0.90 per ordinary share of NLG NLG The ISO 4217 currency code for the Dutch Guilder. 1.25 each for 2000. This represents a 12.5% increase from the dividend for 1999. An interim dividend of EUR 0.40 has already been made available, leaving a final dividend of EUR 0.50. The final dividend will be payable wholly in cash or, at the shareholder's option, wholly in ordinary shares chargeable to the share premium account in a ratio which is still to be determined. The ratio of the value of the stock dividend to that of the cash dividend will be determined on May 31, 2001, after the close of trading on Euronext  Euronext N.V. is a pan-European stock exchange based in Paris[1] , on the basis of the average quotation QUOTATION, practice. The allegation of some authority or case, or passage of some law, in support of a position which it is desired to establish.2. Quotations when properly made, assist the reader, but when misplaced, they are inconvenient. for that day. The value of the cash dividend will be virtually equal to that of the stock dividend. The new ordinary shares will qualify for dividends from January 1, 2001. The ordinary share will be quoted ex dividend from Monday Monday: see week. , May 14, 2001. Shareholders can submit instructions whether they opt for dividend payment in cash or in stock from May 14 to May 30, 2001 inclusive. The 2000 final dividend will be payable as of June June: see month. 6, 2001. ABN AMRO shares trade in the US on the NYSE in ADR ADR - Astra Digital Radio form, and are listed on the principal stock exchanges in Europe. The ordinary shares may be accessed on the Reuter Reu·ter , Baron Paul Julius von 1816-1899. German-born British journalist who founded (1848) Reuter's, one of the first international news agencies. Equities 2000 Service under the symbol ABN.AS and on Quotron under the symbol AABN AABN Assault Amphibian Battalion (USMC) AABN Association for the Advancement of Being Nice (Israel) .EU. Additional information is available on ABN AMRO's home page: http://www.abnamro.com. This press release is also available on the internet on http://www.abnamro.com/pressroom. A web-cast of today's press conference in Amsterdam can be viewed live on http://www.abnamro.com and the analyst meeting on www.abnamro.com/investorrelations Please contact Taylor Taylor, city (1990 pop. 70,811), Wayne co., SE Mich., a suburb of Detroit adjacent to Dearborn; founded 1847 as a township, inc. as a city 1968. A small rural village until World War II, it developed significantly in the second half of the 20th cent. Rafferty Rafferty or Rafferty's rules Noun, pl Austral & NZ slang no rules at all [origin unknown] Associates at 212-889-4350 for tabular tab·u·lar adj. 1. Having a plane surface; flat. 2. Organized as a table or list. 3. Calculated by means of a table. tabular resembling a table. information (appendices ap·pen·di·ces n. A plural of appendix. ). |
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