Private and commercial banking services provider AMRO said that underlying net profit of 2011 suffered from EUR880m pre-tax (EUR660m net of tax) impairments on Greek Government-Guaranteed Corporate Exposures.
For the year 2011, the bank registered net profit of EUR689m for 2011 compared with a loss of EUR414m for 2010.
According to the bank, the underlying cost/income ratio improved to 64% in 2011, down from 70% in 2010
For the full year period, retail banking registered a profit of EUR888m, down EUR239m from 2010, due to the transfer of activities to other segments and higher internal cost allocation, increased margin pressure in deposits and lower fee-generating activities.
The private banking recorded a EUR255m profit, up from EUR64m compared to last year, largely due to a gain on the sale of the Swiss Private Banking activities and the absence of high litigation costs and provisions (included in 2010).
Commercial Banking made a loss of EUR64m in 2011, compared to a profit of EUR57m in 2010, as costs rose due to higher internal cost allocation, the rebuilding of the presence lost in EC Remedy areas and the international network, and loan impairments increased.
Merchant Banking posted a profit of EUR421m, up from EUR115m in 2010, driven primarily by higher operating income levels in LC&MB10 (including ECT), lower costs and low loan impairments.
Group Functions registerd a loss of EUR540m in 2011 and recorded higher operating income and lower operating expenses, due to reallocation of internal costs to the business segments.
