6-K 1 srz9042152v1-2.txt 6-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K Report of Foreign Issuer Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934 For the month of May, 2001 ABN AMRO HOLDING N.V. ABN AMRO BANK N.V. (Translation of registrant's name into English) Gustav Mahlerlaan 10, 1082 PP Amsterdam, The Netherlands (Address of principal executive offices) [Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.] Form 20-F X Form 40-F ----- ----- [Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.] Yes No X ---- ----- Schedule of Information Contained in this Report: 1. The English language press release of ABN AMRO Holding N.V. announcing the financial results for the first quarter of the year 2001, dated May 9, 2001. The Information contained in this Report is incorporated by reference into Registration Statement No. 333-49198. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. ABN AMRO Holding N.V. Date: May 16, 2001 By: /s/ R.W.F. Van Tets -------------------- Name: R.W.F. Van Tets Title: Member of the Managing Board /s/ J.C.L. Kuiper -------------------- Name: J.C.L. Kuiper Title: Member of the Managing Board ABN AMRO BANK N.V. Date: May 16, 2001 By: /s/ R.W.F. Van Tets -------------------- Name: R.W.F. Van Tets Title: Member of the Managing Board /s/ J.C.L. Kuiper -------------------- Name: J.C.L. Kuiper Title: Member of the Managing Board Amsterdam, 9 May 2001 ABN AMRO reports first quarter 2001 results: Adverse trends hit bottom line but aggressive cost management brings in the results o First quarter revenues in line with market trends o Costs up marginally in the first quarter, compared to the first quarter of 2000 o New organisation in place; implementation strategy on track Net profit for the quarter ended 31 March 2001 was slightly higher (1%) at EUR 683 mln compared to the last quarter of 2000. Revenues fell by 3% while expenses declined by 7%, in the first quarter 2001 compared to the fourth quarter 2000. This decline in expenses is a reflection of the measures undertaken to bring costs under control. Compared to the strong first quarter of 2000, total revenues declined by 3% to EUR 4,533 mln. The decline in revenues can be attributed to the downturn in the financial markets coupled with the general softness in the global economy. As such, this has resulted in a decline in commissions and net interest income, which was offset in part by the relative robust performance of various fixed income products and the retail operations in the United States. Operating expenses increased by 2% to EUR 3,253 mln, while provisioning/FAR was EUR 90 mln higher at EUR 267 mln. Consequently, net profit for the same period was 12% lower. The tax rate in the first quarter of 2001 was lower due to tax exempted revenues, release from a tax provision outside The Netherlands. Chairman's statement "In the second half of 2000, we saw the development of two distinct economic trends - a slowdown of the US economy heralded by the significant correction in the Telecom, Media & Technology sector, and in the Eurozone, a flattening of the yield curve. These trends have continued in the first quarter of this year, affecting some of our businesses. Given the economic uncertainties, it is difficult to predict how the remainder of the year will transpire. Should these conditions prevail in the rest of this year, it will be a challenge to equal the record profits of 2000," says Rijkman Groenink.
Key figures group results first quarter 2001 (in millions of euros and %) % change ------------------------ First First Fourth Q1 2001 Q1 2001 quarter quarter quarter / / 2001 2000 2000 Q1 2000 Q4 2000 Operating result 1,280 1,452 1,162 (12) 10 Provisioning / FAR 267 177 112 51 138 Operating profit before taxes 1,001 1,280 1,015 (22) (1) Net profit 683 774 676 (12) 1 Earnings per share (EUR) 0.45 0.51 0.44 (12) 2 Efficiency ratio 71.8% 68.8% 75.1% (in billions of euros and %) 31 March 31 Dec. % change 2001 2000 Total assets 601.7 543.2 10.8 Group capital 33.7 32.5 3.5 Total risk-weighted assets 278.4 263.9 5.5 BIS ratio 10.19% 10.39% Tier 1 ratio 6.82% 7.20% NB. The numbers stated above are unaudited.
ABN AMRO GROUP (in millions of euros and %) % change -------------------------- 1st Q 2001 1st Q 2000 4th Q 2000 Q1 2001 / Q1 2001 / Q1 2000 Q4 2000 Net interest income 2,262 2,256 2,522 0 (10) Revenue from participations 121 82 58 48 109 Commissions 1,291 1,544 1,449 (16) (11) Financial transactions 542 556 258 (3) 110 Other 317 218 385 45 (18) Total revenues 4,533 4,656 4,672 (3) (3) Total operating expenses 3,253 3,204 3,510 2 (7) Operating result 1,280 1,452 1,162 (12) 10 Efficiency ratio 71.8% 68.8% 75.1% NB. The numbers stated above are unaudited.
At group level, the development of the revenues in the first quarter of 2001 broadly reflects the market trends. Total revenues were lower compared to the first and the last quarter of 2000. As such, the downturn in the financial markets, coupled with the relative flatness of the yield curve, have affected the performance of all three SBUs. In essence, this means that commission income was lower and net interest income was equal compared to the first quarter of last year. While the Wholesale Clients SBU and the Netherlands BU within the Consumer & Commercial Clients SBU have suffered as a result of these developments, the impact on the Private Clients and Asset Management SBU has been less severe. Bucking the trend, the Global Financial Markets BU (Fixed Income, Treasury and Structured Finance) within the Wholesale Clients SBU has emerged as a very important revenue driver this quarter. The reorganisation of the Global Financial Markets (GFM) BU, coupled with favourable market conditions (a.o. falling interest rates), have allowed the GFM BU to take advantage of significant issuance of debt in the first three months of this year. In addition, the US operations within the Consumer & Commercial Clients (C&CC) SBU have turned in a relative strong performance. The sale of the Hungarian insurance business, Mebit, generated a gain of EUR 57 mln, which is comparable to a gain of EUR 56 mln (Phone.com) in the first quarter of 2000. Taking into account the significant increase in expenses in the last quarter of 2000, the development of expenses in the first quarter of 2001 reflects a desirable trend. Although higher by 2% compared to the first quarter of last year, expenses actually declined by 7% compared to the last quarter of 2000. As such, the development of expenses reflects the effect of two factors, namely, the momentum effect of expenses from last year coupled with the measures taken to bring costs under control. The vast majority of the expected cost benefits from the reorganisation have yet to make a significant impact; to date, we have utilised EUR 37 mln of the restructuring costs in 2001. It is expected that the projected benefits will accrue within the projected four-year period. The provisioning levels for the first quarter 2001 are higher compared to the first and the last quarter of 2000. The higher numbers reflect a marginal deterioration of the weighted average UCR (Uniform Credit Rating) and the impact of one-off incidents such as the foot and mouth disease in the Netherlands. Provisioning for the first quarter of 2001 does not include any additions or releases from the FAR (fund for general banking risks). The required level of the FAR will be determined at year-end in order to avoid substantial quarterly fluctuations. The risk weighted assets (RWA) have increased by EUR 15 bln to EUR 278 bln compared to year-end 2000. The increase is in part due to currency effects. The capital ratios remain at satisfactory levels; a tier I capital ratio of 6.82% and a total capital ratio of 10.19%. The timing of acquisitions and divestitures will, needless to say, have an effect on RWA and capital ratios. The capital ratios, nevertheless, will be at levels commensurate with our credit rating. STATUS REPORT ON STRATEGIC INITIATIVES Cost efficiencies with respect to Technology, Operations & Property Services within WCS We remain confident that the total programme of change in Technology Operations & Property Services (TOPS) will deliver the projected annualised cost savings of approx. EUR 450 mln by 2002, having realised approx. EUR 60 mln to date. We have announced our intention to move the Equity, Fixed Income and associated Derivative operations and IT infrastructure from Amsterdam to London, our aim to concentrate European Treasury operations in Amsterdam and our plans to rationalise IT development activities in both London and Amsterdam (all subject to Workers Councils advice). The combined effect of these organisational changes is to reduce the headcount of TOPS in 2001 by approx. 600 internal staff and approx. 300 external staff. To date, we have reached a headcount reduction of 170 FTEs, and have successfully transferred the processing of Government Bonds from Amsterdam to London. Closure of countries and disposal of retail businesses In the strategic review, the presence of ABN AMRO in markets world-wide has been analysed, with the purpose of allocating resources to markets with the highest returns or strongest benefits for the rest of the network. As a result, ABN AMRO has announced that it will exit approx. 11 countries and discontinue parts of its operations (mainly retail businesses) in a large number of other countries. So far, ABN AMRO has announced the sale of all activities in Bolivia, Suriname and Ecuador. The sale of the life insurance business in Hungary and the merger of the Hungarian operation with KBC have been concluded. The merged entity will be the second largest bank in Hungary. The sale of European American Bank to Citibank is expected to close in the second quarter of this year. Furthermore, the bank has announced the sale of parts of the business in Argentina, Russia, South Africa (equities) and the Netherlands Antilles (wholesale and retail). ABN AMRO will continue a presence in these countries in other lines of business. Strategic acquisitions in the US On 1 February 2001, ABN AMRO completed its acquisition of Alleghany Asset Management. Alleghany manages assets with a total value of USD 45 bln. This acquisition increases ABN AMRO's global assets under management by 35% to EUR 168 bln and gives ABN AMRO a substantial presence in the world's biggest asset management market. With regard to the C&CC SBU, the acquisition of Michigan National Corporation (MNC) was closed on 2 April 2001. MNC has been integrated with Standard Federal Bank (ABN AMRO's Detroit-area banking subsidiary) to form Michigan's second largest bank. As such, this would allow ABN AMRO to consolidate its position in the US MidWest. The integration of management, systems and back office operations will create strong synergistic benefits. On 1 May 2001, ABN AMRO completed its acquisition of the prime brokerage, corporate finance, domestic equities, and futures and options businesses of ING Barings North America. The acquisition did not include the loan portfolio. The acquisition will enable ABN AMRO's Wholesale Clients SBU to further strengthen the service it offers to its chosen clients world-wide and to further accelerate its plans for the North American market. BU Netherlands New service concepts will be put into effect in The Netherlands; the concept will entail an increased focus on clients, within a sustainable cost platform. The service concepts, in itself, are a reflection of the changes in buying behaviour of the clients, such as an increased demand for advisory services and multi-channel services. The restructuring process in The Netherlands, a consequence of the new service concepts, is on track. The bank is currently in negotiations with the Labour Unions. We are pleased that an agreement has been reached on the restructuring process. As such, this agreement is subject to the final concurrence as part of the collective labour agreement. Progress on these negotiations are leading us to believe that we will conclude these before 1 June 2001. Further information can be obtained from: Press Relations : +31 20 6288900 Investor Relations :+31 20 6287835 This press release is also available on the internet: - http://www.abnamro.com/pers/ (Dutch version) - http://www.abnamro.com/pressroom (English version)
THE WHOLESALE CLIENTS SBU (in millions of euros and %) 2001 2000 2000 % change ----------------------------------------------------------------- ----------------------------------------------------------------- Q1 Q1 Q4 Q1 Q1 01/ 01/ Q1 00 Q4 00 ----------------------------------------------------------------- ----------------------------------------------------------------- Net interest revenue 442 404 491 9 (10) Net commissions 556 807 672 (31) (17) Results from financial transactions 481 527 276 (9) 74 Other revenue 35 17 137 106 (75) --------- --------- --------- Total revenue 1,514 1,755 1,576 (14) (4) Operating expenses 1,301 1,393 1,464 (7) (11) --------- --------- --------- Operating result 213 362 112 (41) 90 Provisioning for loan losses 92 53 (55) (74) - Net profit 76 205 74 (63) 3 ========= ========= ========= Efficiency ratio 85.9% 79.4% 92.9% 31 March 31 Dec. % change 2001 2000 Staff (fte) 22,464 23,003 (2) (in billions of euros) Total assets 311.5 269.7 16 Risk weighted assets 96.9 88.5 10 NB. The numbers stated above are unaudited and proforma.
The performance of the Wholesale Clients (WCS) SBU in the first quarter of 2001 is a fair reflection of the prevailing market conditions, its revenue and product mixes and the strategic choices (clients) within which it has chosen to operate. Revenues for the first quarter of 2001 were lower (14%) compared to the first quarter of 2000 and marginally lower (4%) compared to the last quarter. The continuing weakness of the equity markets and the resulting lack of business volume has meant a significant decline in commission income. Private Equity has seen a significant lower contribution to the bottom-line during the quarter after buoyant exit conditions in 2000. As mentioned earlier, bucking the trend, the Global Financial Markets BU (Fixed Income, Treasury and Structured Finance) has turned in a robust performance - attributable in part to the falling interest rate environment and in part to the reorganisation of this BU. The revenue numbers were further helped by a stronger performance of Corporate Finance and Equity towards the end of the quarter. Expenses during the same comparative periods present a differing trend compared to revenue development. Expenses in the first quarter 2001 were 7% lower compared to the first quarter of 2000 and 11% lower compared to the last quarter. We believe that this reduction in expenses is the result of the measures undertaken to bring costs under control. Provisioning during the first quarter of 2001 was higher (74%) than in the first quarter last year; this increase in provisions was primarily in the Loan Products BU (US portfolio). Notwithstanding the increase in percentage terms, the level of provisioning at 38 bps is satisfactory in the context of the risk weighted assets of the SBU (EUR 96.9 bln). We, therefore, are confident with the quality of the overall portfolio. The efficiency ratio for the quarter, although higher compared to the first quarter of 2000, was 7 percentage points lower than the last quarter of 2000. The overall deterioration of the efficiency ratio is largely due to the weak performance of Equity, lower valuations and a higher level of write-off in Private Equity. Client Business Units The Client BUs have been formed in line with the client focus of the WCS SBU. The client selection process, associated with the formation of the BUs, is now complete. The alignment of client BUs to product BUs is largely in place. The organisational infrastructure has been set up to support the process going forward. The process of aligning clients with products on an industry specific basis has revealed that a significant part of the client base are corporates with a large market capitalisation. It is noteworthy that these large corporates are, in addition to the multinational clients, a very important client segment for our cross border business. As such, we can already see the benefits of a full alignment of client and product coverage in the Global Financial Markets BU. The approach has lead to a focus on higher margin products. In essence, this approach to higher margin products coupled with the alignment process, has enabled us to get a significant portion of the business generated by the issuance of capital for banks and insurance companies in the last quarter. We have also seen the benefits in Asset Securitisation. With respect to the hiring of 500 professionals for the Client BUs, a total number of 200 have been hired. This includes a significant number of internal appointments from the former International Division of the bank. Product Business Units The significant correction and the continuing weakness of the market affected the performance of Equity during the first quarter of this year. As to how Equity will perform during the course of the year is, to a very large extent, contingent upon these market conditions. The Global Financial Markets BU has performed relatively well on the back of favourable market conditions and the realignment of the business to client driven profitability. As such, this alignment of product delivery capabilities with target clients has allowed the Global Financial Markets BU to reap the full benefits of the favourable market conditions. The US high yield business was substantially downsized and has been re-focussed to support our European high yield initiatives. The E-Commerce platform has been deployed across Europe and Asia, while the US is in the midst of a roll-out. With respect to Human Resources, all key positions have been filled. The centralisation of European treasury trading in Amsterdam and European Debt Capital Markets in London is in progress. The performance of Corporate Finance have varied during the first quarter of 2001. While revenues driven by M&A activities were substantially higher than last year for the corresponding period, it was offset by weaker performance of equity capital markets. Expenses were considerably lower due to a decline in incentive compensation. After a robust performance last year, certainly helped by buoyant exit conditions, the performance of Private Equity has been weaker this year. Devaluations in some investments have depressed results in the first quarter of the year. The quality of the portfolio remains very strong. Due to weak market conditions and the fact that the maturity profile of the portfolio has changed after last year, it is expected that the contribution from Private Equity will be lower this year. Interest income (margin income) has held up reasonably well during the first quarter of 2001. It is noteworthy that spreads are widening due to reduced liquidity and tighter market conditions; the net effect of the increase in spreads is expected to come through in the second quarter of this year. The performance of Loan Products in the first quarter was affected by higher provisioning in the US. This must be seen in the context of the overall portfolio. Global Transaction Services (GTS) has been a steady performer. The inherent attractiveness of a flow product, such as GTS, is that it is largely immune to the vagaries of the economic cycle. No large investments are foreseen; as such, investments will continue but at a very modest level. Compared to last year, the growth in revenues has been very satisfactory. In sum, we are satisfied that our investments have come to fruition. The contribution of flow products from the Global Financial Markets BU has been satisfactory.
THE CONSUMER & COMMERCIAL CLIENTS SBU (in millions of euros and %) 2001 2000 2000 % change ------------------------------------------------------------------ ------------------------------------------------------------------ Q1 Q1 Q4 Q1 Q1 01/ 01/ Q1 00 Q4 00 ------------------------------------------------------------------ ------------------------------------------------------------------ Net interest revenue 1,629 1,671 1,841 (3) (12) Net commissions 450 464 515 (3) (13) Results from financial transactions 56 40 39 40 44 Other revenue 310 208 203 49 53 ----------- --------- --------- Total revenue 2,445 2,383 2,598 3 (6) Operating expenses 1,598 1,559 1,723 3 (7) ----------- --------- --------- Operating result 847 824 875 3 (3) Provisioning for loan losses 176 90 367 96 (52) Net profit 500 494 413 1 21 =========== ========= ========= Efficiency ratio 65.4% 65.4% 66.3% 31 March 31 Dec. % change 2001 2000 Staff (fte) 74,939 75,867 (1) (in billions of euros) Total assets 236.7 223.4 6 Risk weighted assets 163.3 157.4 4 NB. The numbers stated above are unaudited and proforma.
The Consumer & Commercial Clients (C&CC) SBU turned in a strong overall performance in the first quarter of 2001 despite the flatness of the yield curve and substantially lower investor activity in the equity markets. Compared to the first quarter of 2000, net profit increased by 1%. Compared to the fourth quarter of 2000, C&CC showed a substantial increase in net profit of 21%. Notwithstanding the above, the performance of The Netherlands BU was weak in the first quarter. This weakness, however, was offset by the strong performance of the United States. The sale of Mebit, the Hungarian insurance company, led to a non-recurring income of EUR 57 mln in the first quarter of 2001. Although provisioning levels were significantly higher (EUR 86 mln) in the first quarter of this year compared to the first quarter of last year; it was approximately 50% lower in the fourth quarter 2000. This decrease, compared to the last quarter of 2000, partially stems from a lower provisioning level in Asia. The Netherlands (please refer to annex 4) For The Netherlands, revenues were down 9% compared to the first quarter of 2000. The decrease in revenues is in large part due to the flatness of the yield curve in the Eurozone. Consequently, net interest income fell by 14% compared to the first quarter. It is noteworthy that despite the relative lack of investor activity in equities, commission income has performed quite well; an increase of 4% compared to the strong first quarter of 2000. Operating expenses rose by 5%, in part due to wage increases awarded in accordance with the collective labour agreement and in part due to higher profit sharing. As such, this has led to an efficiency ratio of 86.8%, compared to 75.1% in Q1 2000. Provisioning levels have increased to EUR 54 mln for the quarter ended March 31 2001, mainly due to the foot and mouth disease. United States (please refer to annex 4) Revenue increased by 12% compared to the first quarter of 2000, reflecting the underlying strength of the US Midwestern economy and a healthy growth of assets and commission income in middle market corporate clients and in mortgages. The increase in revenue growth was sustained by an all-round performance - interest income (8%) and commissions (19%). During the period under review, the operating expenses (12%) moved in line with the revenue development. As such, the efficiency ratio remained stable at 56.2%. Provisioning was EUR 47 mln in the first quarter of 2001. Although a marginal deterioration of the weighted average UCR (Uniform Credit Rating) migration is noticeable, reflecting the economic slowdown, the quality of the US portfolio remains satisfactory. Brazil (please refer to annex 4) Despite the devaluation of the Brazilian Real, revenues and expenses for the quarter remained flat compared to the first quarter of 2000. The first quarter of 2001 showed - in local currency - a healthy development in comparison to the first quarter of 2000. Revenues increased by 10% due to increased volumes and spreads, while expenses increased by 7%. Consequently, operating profits, in local currency, increased by 16%. The efficiency ratio, has remained flat (65%) in euro terms. Compared to the last quarter of 2000, revenues have increased by 6% (in local currency) while expenses were kept flat. The increase in provisioning to EUR 62 mln for the quarter compared to the first quarter of 2000 is largely due to the volume increase in the consumer finance portfolio. However, compared to the last quarter of 2000 it would appear that provisioning is levelling off.
THE PRIVATE CLIENTS AND ASSET MANAGEMENT SBU (in millions of euros and %) 2001 2000 2000 % change ------------------------------------------------------------------ ------------------------------------------------------------------ Q1 Q1 Q4 Q1 Q1 01/ 01/ Q1 00 Q4 00 ------------------------------------------------------------------ ------------------------------------------------------------------ Net interest revenue 74 71 109 4 (32) Net commissions 244 242 219 1 11 Results from financial transactions 13 8 6 63 117 Other revenue 11 21 27 (48) (59) ----------- --------- --------- Total revenue 342 342 361 0 (5) Operating expenses 272 197 287 38 (5) ----------- --------- --------- Operating result 70 145 74 (52) (5) Provisioning for loan losses 3 0 (14) - - Net profit 42 100 41 58) 2 =========== ========= ========= Efficiency ratio 79.5% 57.6% 79.5% 31 March 31 Dec. % change 2001 2000 Staff (fte) 5,817 5,275 10 (in billions of euros) Total assets 15.4 15.9 (3) Risk weighted assets 6.1 5.9 3 NB. The numbers stated above are unaudited and proforma.
Private Clients (please refer to annex 4) The development of revenues for Private Clients was affected by the market conditions; the effect was primarily felt due to the negative valuation effect of client assets and lower commission income from private clients. Consequently, the revenues in the first quarter of this year were 10% lower compared to the first quarter of last year. Expenses were substantially higher (32%) compared to the first quarter of 2000, partly due to the one-off cost associated with the restructuring. As a result, there was a significant worsening of the efficiency ratio. It is noteworthy that the level of assets under administration was maintained, despite the weak market conditions. In and of itself, it is an achievement given the magnitude of value destruction that has taken place in the markets. The restructuring of Private Clients meant that all the businesses in 22 countries were brought together into one coherent business line. The two key operations are in France and in the Netherlands. In order to capture significant operating efficiencies, a process of centralising back offices into three regional hubs is underway. As such, this strategic initiative will allow Private Clients to build a common platform with all the cost synergies inherent to the process. Asset Management (please refer to annex 4) For the quarter ended March 31, the overall performance of Asset Management was weak. While revenues increased by 21% (taking into account the effect of the Alleghany acquisition for a period of two months), expenses were significantly higher at 48% compared to the first quarter of 2000 due to a one-off cost allocation associated with the reorganisation of the businesses and acquisition costs. This has led to a substantial deterioration of the efficiency ratio from 70.1% in the first quarter 2000 to 85.4% in the first quarter of 2001. Consequently, net profit declined by 46% in the first quarter of 2001. As at 31 March 2001 total assets under management were at EUR 168 bln, an increase of 31% compared to the last quarter of 2000. The composition of the assets by mandates was Institutional Clients (49%), Private Clients (10%) and Funds (41%). CORPORATE CENTRE (in millions of euros in %) first quarter ----------------------------------------- 2001 2000 % change Total revenue 57 40 43 Operating expenses (35) (43) (19) ------------ ---------- Operating result 92 83 11 31 March 2001 31 Dec.2000 % change (numbers) Staff (fte) 584 579 1 (in billions of euros) Total assets 28.2 24.8 14 Risk weighted assets 2.6 3.0 (13) NB. The numbers stated above are unaudited The Corporate Centre's main areas of responsibility are the fulfilment of the governance role, the setting of policies and procedures and the offering of shared services to the three SBUs. In contrast with the pro-forma full year results per SBU that were given on the 22 February 2001, we have decided to separately disclose the non-allocated Corporate Centre revenues and operating expenses. The revenues and expenses include the result from the dollar hedge and other forex hedges, the ALCO book and pension premiums accounted for by the three SBUs but not paid to the Pension Fund due to a premium holiday. Net interest income mainly can be attributed to the interest received on the Capital Funding Trust of USD 2.5 bln which is part of Tier 1 equity. Results from financial transactions mainly refers to the US dollar hedge results. As stated earlier, the FAR will be taken into account only in the last quarter of this year.
Annex 1 Consolidated profit and loss account for the first quarter 2001 (in millions of euros and %) first quarter ---------------------------------- 2001 2000 % change Net interest revenue 2,262 2,256 0.3 Revenue from securities and participating interests 121 82 47.6 Payment services 370 326 13.5 Insurance 59 57 3.5 Securities 447 750 (40.4) Asset management and trust funds 207 158 31.0 Guarantees 39 43 (9.3) Leasing 45 32 40.6 Other 124 178 (30.3) -------- ------------ Net commissions 1,291 1,544 (16.4) Securities 257 130 97.7 Foreign exchange dealing 145 153 (5.2) Derivatives 168 188 (10.6) Trading LDC-portfolio 7 10 (30.0) Other (35) 75 -------- ------------ Results from financial transactions 542 556 (2.5) Other revenue 317 218 45.4 -------- ------------ Total revenue 4,533 4,656 (2.6) Staff costs 1,874 1,889 (0.8) Other administrative expenses 1,138 1,093 4.1 Depreciation 241 222 8.6 -------- ------------ Operating expenses 3,253 3,204 1.5 Operating result 1,280 1,452 (11.8) Provisioning for loan losses / FAR 267 177 50.8 Value adjustments to financial fixed assets 12 (5) -------- ------------ Operating profit before taxes 1,001 1,280 (21.8) Taxes 247 419 (41.1) -------- ------------ Group profit after taxes 754 861 (12.4) Minority interests 71 87 (18.4) -------- ------------ Net profit 683 774 (11.8) Preference share dividend 11 20 (45.0) -------- ------------ Net profit available to common shareholders 672 754 (10.9) ======== ============ Earnings per common share of NLG 1.25* (EUR ) 0.45 0.51 (11.8) Average exchange EUR/USD-rate 0.91 0.97 (6.2)
* Based on the average number of common shares outstanding. The quarterly figures have not been audited. Annex 2 Consolidated balance sheet at 31 March 2001 after profit appropriation (in millions of euros and %) 2001 2000 31 March 31 Dec. % change Assets Cash 9,089 6,456 40.8 Short-dated government paper 9,929 11,199 (11.3) Banks 70,757 48,581 45.6 Loans to public sector 15,486 14,974 3.4 Loans to private sector 256,351 245,450 4.4 Professional securities transactions 65,018 58,842 10.5 ------------ ------------ Loans 336,855 319,266 5.5 Interest-earning securities 125,792 108,053 16.4 Shares 21,497 21,094 1.9 Participating interests 2,193 2,026 8.2 Property and equipment 6,745 6,813 (1.0) Other assets 7,816 7,764 0.7 Prepayments and accrued income 11,069 11,917 (7.1) ------------ ------------ 601,742 543,169 10.8 ============ ============ Liabilities Banks 129,534 101,510 27.6 Saving accounts 83,187 80,980 2.7 Deposits and other customer accounts 163,597 155,549 5.2 Professional securities transactions 48,602 43,020 13.0 ------------ ------------ Total client accounts 295,386 279,549 5.7 Debt securities 63,899 60,283 6.0 Other liabilities 53,418 41,080 30.0 Accruals and deferred income 12,398 14,791 (16.2) Provisions 13,423 13,422 0.0 ------------ ------------ 568,058 510,635 11.2 Fund for general banking risks 1,357 1,319 2.9 Subordinated liabilities 14,611 13,405 9.0 Shareholders' equity 12,200 12,523 (2.6) Minority interests 5,516 5,287 4.3 ------------ ------------ Group equity 17,716 17,810 (0.5) ------------ ------------ Group capital 33,684 32,534 3.5 ------------ ------------ 601,742 543,169 10.8 ============ ============ Contingent liabilities 50,791 49,044 3.6 Committed facilities 153,400 138,457 10.8 Exchange EUR/USD-rate 0.88 0.93 (5.4) The quarterly figures have not been audited. Annex 3 Analysis of private sector loans by SBU (in billions of euros and %) 31 March 31 Dec. 2001 2000 % change Wholesale Clients 61.7 58.3 5.8 Consumer & Commercial Clients 177.3 169.7 4.5 Private Clients & Asset Management 5.6 5.9 (5.1) Corporate Centre 2.9 2.9 ABN AMRO Lease Holding 8.9 8.6 3.5 ----------- ----------- Group 256.4 245.4 4.5 =========== =========== Staff (fte) 31 March 31 Dec. 2001 2000 % change Wholesale Clients 22,464 23,003 (539) Consumer & Commercial Clients 74,939 75,867 (928) Private Clients & Asset Management 5,817 5,275 542 Corporate Centre 584 579 5 ABN AMRO Lease Holding 7,345 7,070 275 ----------- ----------- ----------- Group 111,149 111,794 (645) =========== =========== ===========
Share data 31 March 31 Dec. 2001 2000 % change Number of common shares outstanding (in millions) 1,498.1 1,500.4 (0.2) Net asset value per common share (in euros) 7.58 7.78 (2.6) Number of preference shares (in millions) 362.5 362.5 Number of convertible preference shares (in millions) 0.8 0.8
Changes in shareholders' equity for the first quarter 2001 (in millions of euros) 1st Q 2001 1st Q 2000 ----------- ----------- Shareholders' equity as at the beginning of the period 12,544 11,987 Retained earnings and stock dividends 522 569 Exercised options and conversion 5 3 Goodwill (752) (457) Revaluations and other movements 1 Currency translation differences (12) 201 ----------- ----------- 12,307 12,304 Treasury stock 107 182 ----------- ----------- ----------- ----------- Shareholders' equity as at the end of the period 12,200 12,122 =========== ===========
Annex 4 Profit & Loss accounts BUs of Consumer & Commercial Clients (in millions of euros) first quarter ---------------------------------------------------------------------------------------- Netherlands North America Brazil Rest ------------------------------------------------------------------ --------------------- 2001 2000 2001 2000 2001 2000 2001 2000 Net interest revenue 491 569 601 559 381 381 156 162 Net commissions 190 183 167 140 72 87 21 54 Results from financial transactions 12 13 18 14 13 8 13 5 Other revenue 23 19 130 104 34 29 123 56 ---------- ----------- ---------- ---------- ---------- ---------- ---------- ---------- Total revenue 716 784 916 817 500 505 313 277 Operating expenses 621 589 514 457 325 328 138 185 ---------- ----------- ---------- ---------- ---------- ---------- ---------- ---------- Operating result 95 195 402 360 175 177 175 92 Provision for loan losses 54 11 47 29 62 26 13 24 ---------- ----------- ---------- ---------- ---------- ---------- ---------- ---------- Operating profit before taxes 41 184 355 331 113 151 162 68 Taxes 12 48 108 93 27 19 27 ---------- ----------- ---------- ---------- ---------- ---------- ---------- ---------- Group profit after taxes 29 136 247 238 113 124 143 41 Minority interests 24 31 5 12 3 2 ---------- ----------- ---------- ---------- ---------- ---------- ---------- ---------- Net profit 29 136 223 207 108 112 140 39 ========== =========== ========== ========== ========== ========== ========== ========== 31 March 2001 31 March 2001 31 March 2001 31 March 2001 Staff (fte) 28,519 17,154 20,082 9,184 Risk weighted assets (EUR bln) 66.0 66.9 7.4 23.0
Profit & Loss accounts BUs of Private Clients & Asset Management (in millions of euros) first quarter --------------------------------------------------- --------------------------------------------------- Private Clients Asset Management --------------------------------------------------- 2001 2000 2001 2000 Net interest revenue 67 65 7 6 Net commissions 122 142 122 100 Results from financial transactions 11 10 2 (2) Other revenue 12 18 (1) 3 ------------ ------------ ------------ ------------ Total revenue 212 235 130 107 Operating expenses 161 122 111 75 ------------ ------------ ------------ ------------ Operating result 51 113 19 32 Provision for loan losses 4 Operating profit before taxes 47 113 19 32 Taxes 17 33 5 6 ------------ ------------ ------------ ------------ Group profit after taxes 30 80 14 26 Minority interests 2 6 ------------ ------------ ------------ ------------ Net profit 28 74 14 26 ============ ============ ============ ============ 31 March 2001 31 March 2001 Staff (fte) 3,465 2,277 Risk weighted assets (EUR bln) 6.1 0 NB. The numbers stated above are unaudited and are proforma.
Annex 5 Cash flow statement in the first quarter 2001 (in millions of euros) 1st Q 1st Q 2001 2000 ---------- ---------- Liquid funds as at the beginning of the period 16,105 12,471 Net cash flow from operations / banking activities (2,977) (1,113) Net cash flow from investment activities (6,251) 2,725 Net cash flow from financing activities 1,280 (702) Currency translation differences 146 (658) ---------- ---------- Liquid funds as at the end of the period 8,303 12,723 ========== ==========
Consolidated profit and loss account Quarterly results 2001 / 2000 (in millions of euros) 2001 2000 -------------------------------------------------------- 1st Q 4th Q 3rd Q 2nd Q 1st Q Net interest revenue 2,262 2,522 2,369 2,257 2,256 Revenue from securities and participating interests 121 58 179 132 82 Net commissions 1,291 1,449 1,422 1,465 1,544 Results from financial transactions 542 258 390 365 556 Other revenue 317 385 271 291 218 ----------- ----------- ----------- ---------- ---------- Total revenue 4,533 4,672 4,631 4,510 4,656 Staff costs 1,874 1,983 1,829 1,759 1,889 Other administrative expenses 1,138 1,281 1,255 1,172 1,093 Depreciation 241 246 245 228 222 ----------- ----------- ----------- ---------- ---------- Operating expenses 3,253 3,510 3,329 3,159 3,204 ----------- ----------- ----------- ---------- ---------- Operating result 1,280 1,162 1,302 1,351 1,452 Operating profit before taxes 1,001 1,015 1,195 1,235 1,280 Net profit 683 676 796 851 774 Net profit, available to common shareholders 672 657 776 831 754 Earnings per common share of NLG 1.25 (EUR) 0.45 0.44 0.52 0.57 0.51 Earnings per share diluted (EUR) 0.44 0.43 0.52 0.56 0.51 Dividends (EUR) 0.50 0.40 Return on equity 23.2% 22.1% 26.3% 29.5% 26.6% Efficiency ratio 71.8% 75.1% 71.9% 70.1% 68.8% BIS capital ratio 10.19% 10.39% 9.90% 10.22% 10.02% BIS tier 1 ratio 6.82% 7.20% 6.78% 6.75% 6.62% BIS capital base (EUR mln) 28,362 27,421 29,069 27,793 27,195 Risk weighted assets (EUR mln) 278,414 263,853 293,630 271,850 271,488 NB. The numbers stated above are unaudited and are proforma For the applied accounting policies, we refer to our 2000 annual report with effect from January 1, 2001, internally developed software is capitalised and during the life-time amortised to the profit & loss account.