ABN Amro books more profit; apologises for salary increase

ABN Amro on Wednesday announced a rise in profit of 44% to €543m in the first quarter, the highest quarterly rise in four years.

If the levy paid by the bank for the nationalisation of SNS, which cost ABN Amro €67m last year, is removed from the figures, then profit in the first quarter is 75% higher than in the year earlier period.

Income rose 9% to €2.2bn. With costs rising less steeply, operational profit rose 13% to €949m. This increased the return on the bank’s capital from 11% to 14%.

Apology

In the first quarter statement, CEO Gerrit Zalm apologised for the salary increase which caused such a row in April, when €100,000 pay rises were recommended for six board members at the nationalised bank.

‘We sincerely regret the rise in salaries and the impact this had on ABN Amro, our clients and staff and other interested parties,’ he said. ‘This is why we withdrew them.’

Zalm did not mention when ABN Amro would be launched on the stock exchange, a move delayed by the argument over the pay rises.