ABN Amro's first-quarter profits up 31%

16 April 2007

Dutch bank ABN Amro has announced first-quarter net profits of $1.77 billion - a rise of 31 per cent compared with the same period last year.

Shares in the bank were up just over five per cent to $70.67, giving it a market capitalisation of $91.45 billion.

The improvement comes as competition to acquire the bank heats up, with Barclays Bank's exclusive negotiations still ongoing, while Royal Bank of Scotland, Spain's Banco Santander and Dutch-Belgian bank Fortis NV have also approached Amro to enter talks with them.

The announcement of Amro's operating performance was ten days earlier than had been anticipated, with a spokesman from the bank stating it had done so "in light of recent developments and in order to be fully transparent".

Since news of the counterbid for Amro offer broke on Friday, speculation has been rife that its inflated share price will effectively stymie Barclays' offer.

Should the RBS, Santander and Fortis-headed consortium's offer be accepted, it has announced it would be looking to break up the Dutch bank's interests.

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development