Dutch bank ABN AMRO reported a 24.2 per cent surge in third-quarter net profit today despite tough markets eroding revenues more than 7 per cent.
ABN AMRO, which generates almost all its profit from retail banking, beat analysts' expectations by posting €591 million profit, making it one of the few European banks to report a performance improvement this quarter.
The Dutch group maintained its 2002 outlook for flat earnings compared with 2001 and made no comment on its dividend payment policy. Some analysts fear it may be pressured to reduce the dividend soon.
The collapse in stock markets continues to hurt financial groups, eroding the value of their assets and shrinking money they make from market activities with investors hesitant to enter markets amid global and political uncertainty.
ABN AMRO has been somewhat cushioned from the hit rivals such as Deutsche Bank have taken from these crippled markets because of its core retail activities. But it has also cut jobs to reduce expenses and cope better, closing equities operations in the United States and Japan.