ABN Amro loses euro162 million in Q4
ABN Amro Bank NV, owned by the Dutch government, reported a net loss of euro162 million ($216 million) for the fourth quarter of 2009, blaming restructuring costs and costs associated with the failure of a medium-sized bank here in October.india Updated: Mar 26, 2010 17:41 IST
ABN Amro Bank NV, owned by the Dutch government, reported a net loss of euro162 million ($216 million) for the fourth quarter of 2009, blaming restructuring costs and costs associated with the failure of a medium-sized bank here in October. ABN Amro lost euro158 million in the fourth quarter a year ago.
Chief Executive Gerrit Zalm said that the company has cut costs since then. At the end of the year it employed 23,300, down from 24,000.
"Profits and margins were under pressure as a result of the difficult market conditions," Zalm said in a statement. He added that provisions for bad loans were at "record highs." The Netherlands nationalized the Dutch banking operations of ABN Amro Group and of their would-be acquirer Fortis in 2008 as Fortis teetered on the edge of bankruptcy.
ABN said fourth quarter 2009 results were hurt by costs of integrating the former Fortis operations. In addition, the fourth quarter loss includes a charge of euro100 million to help reimburse depositors of bankrupt Dutch lender DSB.
The Dutch deposit insurance scheme requires all banks that operate in the Netherlands to help reimburse retail depositors when any bank fails. Each pays according to its size.
ABN also noted it still expects to book a loss of up to euro900 million on its euro700 million sale of some commercial banking activities to Deutsche Bank. The sale was required by the EU Commission.
The state has not yet set a deadline to reliberalize ABN.