Rabobank net profit increases 8%

Dutch bank Rabobank today reported an 8 per cent rise in first-half net profit on Monday to €748 million and said it expected…

Dutch bank Rabobank today reported an 8 per cent rise in first-half net profit on Monday to €748 million and said it expected a "clear" increase in the full-year figure.

The bank, which bought ACC for €165 million in 2001, said in a statement that operating profit rose 7 per cent to €1.573 billion .

"In the current uncertain economic conditions, it is difficult to make a firm statement about the expected profit for the whole of 2003. Nevertheless, we expect a clear increase in operating profit," Rabobank chief executive Mr Bert Heemskerk said.

Like its bigger rivals, ABN AMRO and ING, Rabobank has been hurt by deteriorating stock markets and seen a fall in the revenues it makes from trading and advising.

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But stock markets showed some recovery in the second quarter and financial services firms are poised to reap the benefits.