ABN Amro returns to Q3 profit, warns of unfavourable Q4

State-owned ABN Amro bank booked net profit of €302m in the third quarter of 2012, compared with a loss in the same quarter a year ago.

The bank said it had returned to profit after putting less money aside to cover bad debts and other one-offs. Greater cost efficiency had also played a part.
“These results are satisfactory, especially under the current economic conditions which are still far from favourable,’ chief executive Gerrit Zalm said in a statement. ‘In the Netherlands, the gross domestic product is lagging, the number of bankruptcies is rising, the job market is under pressure and the housing market is sluggish.’
Nevertheless, the outlook for Q4 is unfavourable, Zalm said, warning that debt defaults are traditionally higher at the end of the year.
In addition, ABN Amro will have to pay the European banking tax for the first time, which will be around €112m, the bank said.

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