Dutch bank ABN AMRO raised its 2003 earnings guidance this morning as robust retail operations and recovering investment banking helped it post a higher than expected 41 percent jump in quarterly net profit.
Its shares leapt as the Netherlands' biggest bank announced record third-quarter operating income and predicted a 25 per cent rise in 2003 net profit to over €3 billion - above its August guidance of a 15 per cent full-year profit increase.
Increased revenues across the board combined with cost cuts and lower provisioning to drive third-quarter net profit to €832 million, above even the most optimistic of forecasts.
Total revenue climbed 11.7 per cent to €4.83 billion as operating profit jumped 23.7 per cent to €1.63 billion.
Company watchers had in previous quarters voiced fears that ABN AMRO was too heavily dependent on US mortgage income, but this time welcomed the broad-based increase in revenues.
"It is clear they have seen good progress in all their businesses. These are very healthy numbers -it isn't just one business driving them forward," said one Amsterdam trader.
Twelve analysts polled by Reuters had expected ABN AMRO on average to report third-quarter net earnings of €697.6 million, up from €591 million in the year-ago period.