Dutch financial giant ABN Amro this morning reported fourth-quarter earnings in excess of analysts' expectations but declined to provide firm guidance for 2003 due to geo-political uncertainties.
Net profit before extraordinary items rose to €685 million, up from €533 million in the fourth quarter a year earlier, putting earnings per share at 0.43 cents compared with 0.34 cents. Analysts had forecast a net profit of €616-682 million.Full-year net profit before extraordinaries came in at €2.412 billion, up 2.1 per cent from 2001, with loan loss provisioning rising to €1.695 billion from €1.426 billion. This was in line with ABN Amro's guidance.
Total revenues fell to €4.489 billion from €4.726 billion last year, due largely to a drop in net interest income and commissions.
Net interest income fell to €2.264 billion from €2.629 billion and commissions declined to €1.114 billion from E1.306 billion in the year earlier period.
The amount charged to equity in relation to pensions was €804 million in the full year and the returns on pension-plan assets were negative as a result of the fall in equity markets.
"We are sceptical about the prospect of a sustained economic recovery during the year. The weak market conditions seen in 2002 are expected to continue in 2003. Based on a no-war scenario the net profit for the year should be higher than in 2002," chief executive officer Mr Rijkman Groenink said in a statement.
AP