ABN AMRO reports net profit of 1,285 million in 2012

ABN AMRO Bank reports full-year 2012 underlying net profit of EUR 1,285 million and EUR 84 million for Q4 2012. Underlying net profit, excluding separation and integration-related expenses, was EUR 1,285 million in 2012, compared with EUR 960 million in 2011.

Impairments were lower as 2012 included a EUR 125 million pre-tax release of Greek impairments compared with a EUR 880 million pre-tax charge in 2011. Excluding the Greek exposures, impairments were significantly higher compared to 2011. The underlying cost/income ratio improved to 61%, down from 64% in 2011. Underlying net profit for Q4 2012 decreased to EUR 84 million (from EUR 374 million for Q3 2012) as impairment charges more than doubled and the Dutch bank tax (EUR 112 million) was charged. Reported net profit increased to EUR 948 million for 2012. The reported net loss in Q4 was EUR 97 mil- lion and was due mainly to integration costs. The core tier 1 ratio improved to 12.1%, tier 1 ratio to 12.9% and total capital ratio to 18.4%. The proposed dividend to the ordinary shareholder is EUR 250 million. All integration activities were completed in 2012. Gerrit Zalm, Chairman of ABN AMRO Group, said 2012 was an important year, as it marked the finalisation of the integration. Four years ago we developed plans for the integration of ABN AMRO and Fortis Bank Nederland. I am pleased to say that we have completed this complex operation with relatively little inconvenience to our clients, on schedule and on budget and that this has yielded the efficiency improvements envisioned at the outset.

In the meantime, we have been conducting our ordinary business in not-so-ordinary times. The economic environment continued to be challenging in 2012. Despite these circumstances, the bank delivered satisfactory results for full-year 2012.