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ABN Amro may miss target
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May 9, 2001: 7:02 a.m. ET
Dutch bank reports 12 percent drop in profit as slowing global economy bites
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LONDON (CNN) - Dutch bank ABN AMRO warned on Wednesday full-year profit may not match the previous year record as global economic growth slows.
The largest Dutch bank made the announcement as it reported a 12 percent decline in net income to  683 million ($604 million) in the first three months of the year, as commission and interest income declined.
"Given the economic uncertainties, it is difficult to predict how the remainder of the year will transpire," Chairman Rijkman Groenink said.
"Should these conditions prevail in the rest of this year, it will be a challenge to equal the record profits of 2000."
Earnings per share fell to 0.45 from 0.51 in the year earlier period, but that was bang in line with analysts' forecasts, Reuters said.
Some of the U.S.'s biggest banks – Citigroup (C: Research, Estimates), Bank of America (BAC: Research, Estimates) and First Union (FTU: Research, Estimates) reported sharply lower quarterly earnings last month as risky loans and investment losses bit into profits as the economy continued to slow. That slowdown is now having an impact globally.
Over the last six months, ABN has increased its exposure to the U.S. market; it completed the acquisition of money manager Alleghany Asset Management.
Its acquisition of Michigan National was integrated with Standard Federal bank to form Michigan's second-largest bank. The Dutch bank also completed the acquisition of ING Barings North America's corporate finance, equities, futures and options units.
As expected, the worst performing division was wholesale banking, where net profits plunged 63 percent on the year to 76 million, a move ABN Amro said was "a fair reflection of the prevailing market conditions."
--from staff and wires 
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