aa 2004q1 pres

Increase in net profit for the eighth consecutive quarter : 

Increase in net profit for the eighth consecutive quarter First Quarter Results 2004 28 April 2004

Table of contents: 

Table of contents Introduction 3 Operating performance 7 Asset quality and capital 18 Appendices 23

Revenue growth, despite US mortgage slowdown: 

Revenue growth, despite US mortgage slowdown Compared to the first quarter results 2003 Revenues up (+5.4%) despite mortgage slowdown, due to diversified business mix Operating expenses up (+2.7%) Operating result higher (+11.0%) due to revenue growth Provisions lower (-43.1%) Net profit up (+35.4%) Strong increase of Private Clients contribution to Group

Efficiency ratio is trending down: 

Efficiency ratio (%) Efficiency ratio is trending down The strong improvement in the efficiency ratio in Q2 03 was due to the continuing strong US mortgage contribution (with a relatively low efficiency ratio) in combination with a significant improvement of the efficiency ratio in WCS and Private Clients

ABN AMRO to sell LeasePlan Corporation for EUR 2.13 bn: 

ABN AMRO to sell LeasePlan Corporation for EUR 2.13 bn ABN AMRO to sell LeasePlan Corporation to consortium of investors led by Volkswagen for EUR 2.13 billion (EUR 2 bn in cash and EUR 130 mln as a dividend) Book profit of EUR 875 mln after write back of goodwill to equity and provisions Positive impact on Tier 1 ratio of 90 bps Completion expected before end of the summer Rationale: streamline and focus our businesses, by disposing non core assets allocate our capital to those businesses and activities which create the highest value

ABN AMRO to sell Bank of Asia: 

ABN AMRO to sell Bank of Asia On 20 February 2004, ABN AMRO announced the intention to sell its 80.77% stake in Bank of Asia, Thailand On 25 April 2004, ABN AMRO announced that it has selected United Overseas Bank (UOB) as preferred bidder. ABN AMRO and UOB signed an exclusivity agreement to negotiate, finalize and execute the sale and purchase agreement as soon as possible Expected deal announcement before the end of the second quarter

Operating performance: 

Operating performance

Improved operating result due to good cost discipline: 

Revenues Q1 2004 Improved operating result due to good cost discipline Revenues are relatively stable at constant exchange rates Operating expenses down quarter on quarter due to lower cost in all business units with the exception for BU Private Clients and Corporate Centre Operating result was up by 4.1% and the efficiency ratio improved by 2.0 percentage points Net profit up by 9.0%

Higher operating result BU NL due to active cost management : 

Higher operating result BU NL due to active cost management Revenues stable when adjusted for EUR 120 mln securitisation revenues in the fourth quarter, despite weaker net interest income Expenses down due to lower staff costs and restructuring expenses in the fourth quarter Operating result increased by 14.6% on a like for like basis Revenues Q1 2004

Better performance BU NA despite lower mortgage income: 

Better performance BU NA despite lower mortgage income The US dollar depreciated on average by 2.8% against the Euro during Q1 vs Q4 At constant exchange rates: Revenues down by 1.4%, primarily due to lower contribution of mortgage line of business Expenses down by 7.7% due to incidental expenses in the fourth quarter and lower bonus accruals Guidance of net profit decline between EUR 150-250 mln remains in place Revenues Q1 2004

Increased operating result BU Brazil, driven by acquisition Sudameris: 

Increased operating result BU Brazil, driven by acquisition Sudameris The Brazilian real depreciated on average by 3.1% against the Euro during Q1 vs Q4 Sudameris contributed EUR 39 mln to operating and EUR 17 mln to net result At constant exchange rates and excluding the impact of Sudameris: Revenues decreased by 1.1%, mainly due to lower retail banking and treasury income Expenses declined by 3.6% due to lower marketing expenses Revenues Q1 2004

Contribution of BU NGM to the group continues to increase: 

Contribution of BU NGM to the group continues to increase Revenues increased by 23.5% at constant exchange rates, driven by the inclusion of the transfer of Emerging Growth Markets (EGM) businesses from WCS and the growth in India and Greater China Higher revenues in India and Greater China following the success of our Van Gogh preferred Banking concept and the increased sale of credit cards Expenses down, despite transfer of EGM businesses Revenues Q1 2004

Project development in Bouwfonds drives revenues up : 

Project development in Bouwfonds drives revenues up Revenues increased by 2.6%, driven by high level of housing sales and the realisation of a commercial development project Expenses down by 18.1% due to incidental costs related to special projects in the previous quarter Revenues Q1 2004

Stable result C&CC due to diversified geographical mix: 

Stable result C&CC due to diversified geographical mix Like for like revenues were stable at constant exchange rates, despite US mortgage slowdown Expenses decreased by 6.1% at constant exchange rates. The decrease was due to a high comparison base in the fourth quarter, as a result of several non-recurring expenses, and to diligent cost control Revenues Q1 2004

Net profit WCS above EUR 150 mln guidance quarterly run rate: 

Net profit WCS above EUR 150 mln guidance quarterly run rate Revenues down quarter on quarter due to sale of Prime brokerage in fourth quarter and transfer of EGM businesses to BU NGM Expenses came down in the first quarter of 2004, similar to the level in the third quarter of 2003 (EUR 1,096 mln), in line with the guidance Operating result increased by 10.8% on a like for like basis The efficiency ratio declined to 80.0%, the lowest level in three years Revenues Q1 2004

Steady revenue growth in BU Private Clients: 

Steady revenue growth in BU Private Clients Revenues increased by 7.4%, driven by higher net interest income and commissions on the back of strong growth in net asset values Expenses up by 7.2%, partly due to the integration of BethmannMaffei Operating result up, mainly due to offshore and Dutch private banking operations Assets under Administration rose by 10.8% to EUR 113 bn Revenues Q1 2004

BU Asset Management continues its path of improved performance: 

BU Asset Management continues its path of improved performance Revenues positively impacted by one-off gain. On a normalised level, revenues went up by 3.1% on the back of improved market conditions Expenses down due to the absence of seasonal costs as reported in previous quarter Assets under Management rose by 6.4% to EUR 166 bn Revenues Q1 2004

Asset Quality and Capital: 

Asset Quality and Capital

Provisioning is coming down as global economy recovers: 

Loan loss provisions per SBUs (EUR mln) Provisioning is coming down as global economy recovers Overall provisioning down in Q1, mainly due to lower provisioning in WCS and BU NA WCS provisioning down due to the provisioning for Parmalat in Q4 In C&CC, provisioning down due to lower provisioning in BU NA and Bouwfonds. Provisioning stable in BU NL and BU NGM. Provisioning higher in BU Brazil due to individual default in commercial portfolio Overall quality of the portfolio remains solid Annualised provisions / RWA (%)

Tier 1 target of at least 8.25% has been reached ahead of schedule: 

Tier 1 target of at least 8.25% has been reached ahead of schedule Tier 1 ratio improvement to 8.27%, despite increase in Risk Weighted Assets Core Tier 1 remained stable at a level of 5.91% It is the intention to neutralise the dilutive effect of the stock dividend. For 2004 this will be dependent on the further strengthening of our capital ratios consequent to the closing of the sale of Leaseplan

We confirm our 2004 outlook: 

We confirm our 2004 outlook We confirm the outlook that 2004 will be better than 2003, with a continuing improvement in our operating performance and net profit