Nationalised bank ABN Amro booked net profit of over €1.1bn last year, slightly up on 2012.

Nevertheless, chief executive Gerrit Zalm said it had been a difficult year and described the result as ‘modest’.

The bank reported a €47m net loss in the fourth quarter due to the bank tax (€106m) and high set-asides for bad debts (€555m).

Full year net profit was boosted by several one-offs. For example, losses on Greek loans and the impact of the Madoff pyramid selling scandal were less than expected. Excluding one-offs, net profit would have been €752m.

The bank set aside €1.7bn to cover losses, largely from smaller firms which are in financial difficulty.

Improvements

Nevertheless, there are signs of improvement in the economy and 2013 was likely to have been the low point, Zalm said. House prices are stabilising and the demand for new mortgages is rising.

‘However, even if the economy does turn the corner, impairments are expected to remain elevated in 2014,’ Zalm said in a statement.

The bank will pay €350m in dividend to the state.