ABN Amro has suffered from the collapse of such high-profile US companies as Enron and WorldCom, announcing yesterday it would increase first-half provisions to $973 million (€106 million) from an initial forecast of $900 million.
The head of Dutch banking group ABN Amro, Mr Rijkman Groenink, lashed out yesterday at fraudulent business practices which have led to several bankruptcies, saying his firm was fed up.
"Let me tell you in English that we are really 'pissed off', we are completely fed up," Mr Groenink said in response to a question on recent bankrupties following the discovery of fraudulent accounting.
"This substantial increase, in particular in the second quarter, is the result of the unprecedented number of bankruptcies caused by fradulent practices," the bank said.
But the group pleased investors by maintaining its full-year profits forecast. "We expect the net profit for this year, excluding extraordinary items, to be in line with 2001 and therefore in line with our outlook," said Mr Groenink.
Because of the exceptional situation, the bank decided to detail the amount of provisions tied to "normal" activities as well as that which stemmed from a wave of bankruptcies, particularly in the United States.
"Around €300 million are the direct consequence of fradulent practices," financial director Mr Tom de Swaan said. ABN, which employs 210 people in its Dublin operations, expects, however, the amount of provisions needed to cover its exposure to stabilise in the second half of the year. - (AFP)
