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8/28/12

Netherlands: Weak Dutch economy and property woes hit ABN Amro Bank

Net profits at Dutch bank ABN Amro fell 36 per cent in the second quarter compared with the first quarter, as the stagnating Dutch economy and falling property market led to a near doubling in impairment charges.

ABN Amro, wholly owned by the Dutch state since it was rescued during the financial crisis, said it expected profits to drop further in the second half of 2012 because of rising bankruptcies and the introduction of a new banking tax.

Overall for the first half of 2012, the bank’s operating income fell to €3.8bn, down 7 per cent compared with the same period last year. Net profits in the first half were down 14 per cent year on year to €743m.

The decline in profits at ABN Amro provided further testimony of the weakness in the Dutch economy, which barely grew in the first half after shrinking in the second half of 2011.

Read more: Weak Dutch economy and property woes hit ABN Amro - FT.com

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