The Dutch-based nationalised unit of
ABN AMRO has posted first quarter profits down by 62 percent to €87
million ($121.1 million) as loan losses and provisions almost
tripled to €252 million compared with the same quarter last
year.
ABN, acquired for €72 billion in the ill-fated
2007 acquisition by the Royal Bank of Scotland (RBS)-led
consortium, is still in the process of separating the various
business divisions to be retained by the Dutch government from the
residual RBS acquired businesses into two separate banks.
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The ABN units bought by RBS posted a €928
million loss for the quarter. ABN and RBS have confirmed the
separation is on track to be concluded by the end of 2009.
After the split, a new bank combining state
controlled ABN and Fortis Bank Netherlands (to be branded ABN AMRO)
will focus on the Dutch retail, SME and corporate sector, with
estimated annual revenue of around €8 billion.
According to the Dutch government, the new ABN
AMRO is unlikely to return to the private sector before
2011.
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