FORM
6-K
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
Report
of Foreign Private Issuer
Pursuant
to Rule 13a-16 or 15d-16 of
the
Securities Exchange Act of 1934
For
November 27, 2009
Commission
File Number: 001-14624
ABN
AMRO HOLDING N.V.
Gustav
Mahlerlaan 10
1082 PP
Amsterdam
The
Netherlands
________________________________________________
(Address
of principal executive offices)
Indicate
by check mark whether the registrant files or will file annual reports under
cover of Form 20-F or Form 40-F.
Form
20-F X
Form 40-F
_____
Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted
by Regulation S-T Rule 101(b)(1):
Indicate
by check mark if the registrant is submitting the Form 6-K in paper as permitted
by Regulation S-T Rule 101(b)(7):
Indicate
by check mark whether the registrant by furnishing the information contained in
this Form is also thereby furnishing the information to the Commission pursuant
to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes _____ No X
If “Yes”
is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): 82- _____
TABLE
OF CONTENTS
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Item
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1
|
Press
release dated 25 November 2009 – ABN AMRO Group
reports third quarter 2009 financial
results
|
Item 1
Press
Release
Amsterdam, 25 November 2009
ABN AMRO Group reports third quarter 2009
financial results
|
§
|
ABN
AMRO reports a loss for the third quarter of EUR 1,015 million, with
modestly negative results for the Dutch State acquired businesses of EUR
32 million and a loss of EUR 873 million for the RBS acquired
businesses.
|
|
§
|
The
future ABN AMRO Bank continues to show a stable performance and reports a
net positive cumulative result for the first three quarters of
2009.
|
|
§
|
The
results of the RBS acquired businesses continue to be impacted by
financial and credit market volatility and business transfers, however
results in respect of the businesses that remain in the future RBS N.V.
have improved, in particular in the equities and global transaction
banking businesses.
|
|
§
|
ABN
AMRO Group is making good progress on the separation into two independent
banks, the future ABN AMRO Bank N.V., owned by the Dutch State and the
future RBS N.V., owned by the RBS
Group.
|
Third
quarter 2009 update
ABN AMRO Group has recorded a loss for the
period of EUR 1,015 million for the third quarter 2009 increasing the year to date loss for the nine months to 30 September 2009 to EUR 3,662
million.
The Group's third quarter 2009 loss from
continuing operations has decreased compared to the second quarter 2009,
following an increase in operating income combined with lower operating expenses
and lower loan impairments. This reflects the continued recovery of the financial markets in the third quarter
and current signs of
a stabilisation of the
economic climate. The Group's loss from continuing operations for the quarter comprises a loss of EUR 873 million
attributable to the Royal Bank of Scotland Group plc (RBS) acquired businesses,
a loss of EUR 32 million attributable to the Dutch State acquired businesses and
a loss of EUR 111 million attributable to the Group's Central Items, including the limited positive results
allocated to Santander’s remaining interest in ABN AMRO.
The Group's year to date loss from continuing operations amounted to EUR 3,762 million. The
results were slightly positive for the Dutch State acquired businesses at EUR 45
million. A loss of EUR 3,636 million was attributable to the RBS acquired businesses and a loss
of EUR 171 million to Central Items, including a gain for Santander’s remaining interest in ABN
AMRO.
An overview of the results and
financial position of the Dutch State acquired businesses is included in
Appendix I, an overview of the results and financial position of the RBS
acquired businesses is included in Appendix II and a summary of the Group
results and financial position is included in Appendix III of this release. Due
to the transfer of certain assets to RBS plc and new business now being written
in RBS plc for activities that are discontinued in the RBS acquired businesses,
the results of this segment are not representative of the business that will
remain after separation. For further information regarding the results of the
RBS Group, please refer to the RBS Press Release published on 6 November 2009
available on the RBS Group website (www.RBS.com).
Capital,
liquidity and funding
ABN AMRO Group
continues to be well funded and capitalised. At 30 September 2009, the Group’s
tier 1 ratio was 15.1% (31 December 2008: 10.9%) and the total capital ratio was
20.2% (31 December 2008: 14.4%). The increase in capital ratios reflects a
reduction in risk weighted assets in the first nine months of this year, a EUR 3
billion capital injection by RFS Holdings B.V., the issue of a EUR 800 million Mandatory Convertible
Tier-1 Security that was acquired by the Ministry of Finance and a Credit
Default Swap transacted with the Ministry of Finance through which ABN AMRO Bank N.V. has purchased credit protection on a EUR
34.5 billion portfolio of own originated residential
mortgages.
The Dutch Central
Bank informed ABN AMRO that a decision on the regulatory approval of a capital
repatriation for the benefit of Santander can only be made after completion of
the capital actions in preparation for the legal separation and in conjunction
with the overall capital plan stipulated within the governance of ABN AMRO Group
and agreed between Consortium Members.
ABN AMRO capital
ratios continue to exceed the minimum tier 1 and total capital ratios of 9% and
12.5% respectively, as set by the Dutch Central Bank during the separation
period of ABN AMRO Group, and are adequate to cover for stress scenarios. ABN
AMRO Group is well funded and continues to comfortably exceed the regulatory
liquidity requirements. ABN AMRO Group and its shareholders have plans in place
to ensure that at legal separation each individual bank is adequately
capitalised and has a sound liquidity position.
The Dutch Minister of Finance has made a
proposal to the Dutch Parliament on the capitalisation of the Dutch State acquired businesses
until legal separation on 19 November 2009 and the proposal includes the impact on capital of the transaction in
respect of the EU
Remedy agreed in a
“Heads of
Agreement” between the
Dutch State and Deutsche Bank. The capital actions will ensure that before the date of the legal demerger the Dutch State acquired businesses are adequately
capitalised.
RBS Group announced
plans to accede to the UK Asset Protection Scheme (’APS’) which is expected to
cover a pool of assets within the RBS acquired businesses in ABN AMRO (the
future RBS N.V.). This will help to further strengthen the capital position and
de-risk the earnings of the future RBS N.V. businesses. RBS Group will undertake
further capital actions as agreed with regulators in preparation for the legal
demerger.
Outlook
Following the bankruptcy of DSB Bank in
early October 2009, ABN AMRO expects to record a provision in the fourth quarter of
2009 in relation to the deposit guarantee
scheme in the Netherlands. This provision is attributable to the
Dutch State acquired
businesses.
Conditional upon the approval by the
Dutch Parliament and the ABN AMRO board of the related agreement, the Group also
expects to record a loss on the sale of part of the Dutch State acquired businesses in the Netherlands to satisfy the requirements of the
European Commission (EU Remedy) in the fourth quarter of
approximately EUR 800 to 900 million.
Update
on separation
Update
on separation activity
On 9 November 2009 ABN AMRO announced that the creditor objection
period in relation to the
filing with the Amsterdam Chamber of Commerce of a proposal for the legal
demerger in The
Netherlands and in Belgium of the
majority of the Dutch State acquired activities (refer to www.abnamro.com), ended on 30 October 2009. The Amsterdam District Court has confirmed
that no objections were filed. ABN AMRO can now proceed with the
restructuring process to transfer Dutch State acquired businesses and activities into the newly
formed entity ABN AMRO II N.V. that will initially be
fully owned by ABN AMRO Holding N.V. and that will be renamed to
ABN AMRO Bank N.V. following legal
demerger.
The legal demerger
process marks the start of the last phase of the separation process of ABN AMRO
Group into the new ABN AMRO Bank N.V. and the future RBS N.V. ABN AMRO plans to
complete the legal demerger as early as possible in the first quarter of 2010,
which will coincide with the last major technical separation to fully enable the
financial markets operations of the two separate banks within the Group. The
smooth legal separation of the Dutch State acquired businesses from ABN AMRO
Group remains a priority for the Managing Board and is targeted for completion
approximately two months after the legal demerger. This legal separation will
create two independent banks: ABN AMRO Bank N.V. owned by the Dutch State and
RBS N.V. owned by RBS Group.
EU
Remedy
As announced on 20 October 2009, the
Dutch State and Deutsche
Bank have entered into a “Heads of Agreement” outlining the principle terms and
conditions for the sale to Deutsche Bank AG of the new HBU II N.V. consisting of
part of the Dutch commercial clients’ activities and selected regional branch
offices and IFN Nederland B.V. to comply with
the European Commission’s requirements for competition and to
thus enable the integration of the new ABN AMRO Bank and Fortis Bank Nederland.
The agreement that is being
prepared on the basis of the ”Heads of Agreement” is subject to approval by various bodies,
such as the Supervisory and Managing Board of ABN AMRO Bank N.V. and the Lower
House of the Dutch Parliament.
ABN AMRO estimates
that the loss on the transaction will be in the range of EUR 800 to EUR 900
million, including the impact of a provision to be taken for a credit guarantee
to the buyer guaranteeing 75% of the credit losses on the transferred loan
portfolio of HBU II N.V. ABN AMRO expects that in the fourth quarter of 2009, after the
Group’s Managing Board and the Supervisory Board approval of the transaction and
the execution of the transaction becoming highly probable, the majority of the
losses on the transaction will have to be recorded. The remainder will be
recorded up to the closing of the transaction, expected soon after separation of
the new ABN AMRO Bank N.V. from the existing ABN AMRO Group.
2
ABN AMRO Group
estimates the cumulative net impact on its tier 1 capital ratios on recognition
of the loss on the transaction to be in the range of 50-55 basis points. This
reflects the loss on sale and the initial capital requirement for the credit
guarantee provided to the purchaser. The capital requirement for the credit
guarantee will after closing of the transaction decrease over its life, with
only a minor part remaining after the first five years.
Governance until
separation
Until legal
separation ABN AMRO Group will continue to be governed by the ABN AMRO Holding
N.V. Managing Board and Supervisory Board and regulated on a consolidated basis
with capital adequacy, liquidity measures and exposures being reported to and
regulated by the Dutch Central Bank.
|
ABN AMRO
Group’s financial results included in this press release do not include
all the information and disclosures required in the annual financial
statements. This press release should be read in conjunction with the
Group’s Interim Financial Report for the six months ended 30 June 2009 and
also the audited financial statements as part of the Annual Report as at
31 December 2008 which was prepared in accordance with ‘International
Financial Reporting Standards (‘IFRS’) as issued by the International
Accounting Standards Board and IFRS as adopted by the European Union. In preparing
financial information in this press release, the same accounting policies
and methods of computation are followed as were applied in the preparation
of the Group’s financial statements for the year ended 31 December 2008,
except, where applicable, for the impact for the adoption of the Standards
and interpretations as described in the Group’s Interim Financial Report
for the six months ended 30 June 2009. All amounts in this press release
are unaudited. Small differences are possible in the tables due to
rounding.
Certain statements in this press
release are statements of future expectations and other forward-looking
statements. Such statements are based on current expectations, and by
their nature are subject to a number of risks and uncertainties that could
cause actual results and performance to differ materially from any
expected future results or performance, expressed or implied, by these
statements. Factors that could cause actual results to differ materially
from those estimated by the forward looking statements contained in this
document include, but are not limited to i) the extent and nature of
future developments and continued volatility in the credit markets and
their impact on the financial industry in general and ABN AMRO in
particular, ii) the effect on ABN AMRO’s capital of write downs in respect
of credit exposures, iii) risks related to ABN AMRO’s transition and
separation process following its acquisition by the consortium consisting
of The Royal Bank of Scotland Group plc (‘RBS’), the State of the
Netherlands (‘Dutch State’) and Banco Santander S.A. (‘Santander’), iv)
general economic conditions in the Netherlands and in other countries in
which ABN AMRO has significant business activities or investments, e.g.
the United Kingdom, including the impact of recessionary economic
conditions on ABN AMRO's revenues, liquidity and balance sheet, v) the
actions taken by governments and their agencies to support individual
banks and the banking system, vi) the monetary and interest rate policies
of the European Central Bank, the Board of Governors of the Federal
Reserve System and other G-7 central banks, vii) inflation or deflation,
viii) unanticipated turbulence in interest rates, foreign currency
exchange rates, capital markets, commodity prices and equity prices, ix)
changes in Dutch and foreign laws, regulations and taxes, x) changes in
competition and pricing environments, xi) natural and other disasters,
xii) the inability to hedge certain risks economically, xiii) the adequacy
of loss reserves, xiv) technological changes, xv) changes in consumer
spending and saving habits and xvi) the success of ABN AMRO in managing
the risks relating to the foregoing.
The forward-looking statements
made in this press release speak only as at the date of publication of
this press release. ABN AMRO does not intend to publicly update or revise
these forward-looking statements to reflect events or circumstances after
the date of this report, nor does ABN AMRO assume any responsibility to do
so.
|
For
further information, please contact
|
ABN
AMRO Group Press Office
pressrelations@nl.abnamro.com
+31 20
6288900
|
RBS
Group Investor Relations
Investor.relations@rbs.com
+44 207 672
1758
RBS
Group Media Relations
+44 131 523
4414
|
3
|
APPENDIX
I
|
Financial
results and position of the Dutch State acquired
businesses
|
Results
of the Dutch State acquired businesses
|
EUR
in millions
|
2009
|
2008
|
||||||||
|
YTD
|
Q3
|
Q2
|
YTD
|
Q3
|
||||||
|
Profit and
Loss
|
||||||||||
|
Net interest
income
|
2,141
|
685
|
678
|
2,407
|
787
|
|||||
|
Net fees and
commissions income
|
921
|
320
|
302
|
1,023
|
330
|
|||||
|
Net trading
income
|
15
|
(2)
|
(33)
|
141
|
50
|
|||||
|
Results from
financial transactions
|
255
|
54
|
141
|
139
|
22
|
|||||
|
Share of
result in equity accounted investments
|
64
|
15
|
49
|
39
|
(2)
|
|||||
|
Other
operating income
|
155
|
53
|
48
|
196
|
70
|
|||||
|
Operating
income
|
3,551
|
1,125
|
1,185
|
3,945
|
1,257
|
|||||
|
Operating
expenses
|
2,651
|
904
|
884
|
2,742
|
931
|
|||||
|
Operating
result
|
900
|
221
|
301
|
1,203
|
326
|
|||||
|
Loan
impairments and other credit risk provisions
|
838
|
242
|
344
|
383
|
148
|
|||||
|
Operating
profit/(loss) before taxes
|
62
|
(21)
|
(43)
|
820
|
178
|
|||||
|
Tax
|
17
|
11
|
(33)
|
191
|
43
|
|||||
|
Profit/(loss)
from continuing operations
|
45
|
(32)
|
(10)
|
629
|
135
|
|||||
Notes:
|
(1)
|
These figures
are excluding the private equity consolidation effect and are therefore a
non-GAAP measure. See Appendix III for the private equity consolidation
effect for the Group.
|
Third quarter results 2009 compared to
second quarter results 2009
Key points:
|
§
|
Operating income has decreased by
5% to EUR 1,125 million. The third quarter 2009 was affected by lower
asset and liability management results and some negative results
related to the
recording of the impact of reserving methodologies for the
developing
financial
markets business of the future ABN AMRO
Bank, while the second quarter 2009
benefited from results on our participations in Delta Lloyd and
Equens.
|
|
§
|
The recovery of the interest rates in the
Dutch deposit and savings markets, as witnessed in the course of the
second quarter 2009, has continued in the third quarter and contributed to
slightly improved net
interest income. This improvement was partly offset by additional interest expenses this
quarter for the issued EUR 800 million Mandatory Convertible Tier-1
Security and the
purchased credit protection for a EUR 34.5 billion portfolio of
own originated residential mortgages to strengthen the capital of the
Dutch State acquired
businesses.
|
|
§
|
Operating expenses include transition and integration
costs in both quarters and have remained relatively
stable.
|
|
§
|
Loan impairments have decreased by
EUR 102 million to EUR 242 million. The loan impairments predominantly
comprise specific
provisions against commercial loan portfolios. The second quarter 2009 included
increased levels of incurred but not identified provisions on the basis of
an assessment of the economic climate and the expected
loan impairments for the year. In light of an unchanged outlook
for expected loan
impairments, the
incurred but not identified allowance remained stable in the third
quarter.
|
Year to date results 2009 compared to
year to date results 2008
Key points:
|
§
|
Year to date operating income has decreased by 10% to EUR 3,551
million compared to
last year, mainly due
to interest margin pressure resulting in a decreased net interest
income.
|
|
§
|
The net fees and commissions
income level has decreased following lower average Assets under Management
levels compared to
last year, due to
lower values of investments.
|
|
§
|
Operating expenses have decreased
by 3% to EUR 2,651 million benefiting from cost management
actions and lower
personnel expenses (following decreased number of staff) partly offset by continuing transition and integration
costs in 2009 and in
the comparative year.
|
|
§
|
Loan impairments have increased by
EUR 455 million to EUR 838 million reflecting the challenging credit
environment in
2009 particularly regarding the commercial loan
portfolio.
|
4
Balance
Sheet information
|
EUR
in billions
|
Dutch
State Acquired Businesses
|
|||||
|
30
September 2009
|
30
June 2009
|
31
December 2008
|
||||
|
Assets
|
||||||
|
Cash and
balances with central banks
|
0.6
|
6.6
|
0.6
|
|||
|
Financial
assets held for trading
|
3.4
|
1.0
|
1.0
|
|||
|
Financial
investments
|
20.7
|
17.4
|
14.7
|
|||
|
Loans and
receivables - banks
|
17.9
|
18.8
|
7.5
|
|||
|
Loans and
receivables - customers
|
150.8
|
152.0
|
150.4
|
|||
|
Other
|
9.6
|
9.4
|
9.3
|
|||
|
Total
assets
|
203.0
|
205.2
|
183.5
|
|||
|
Liabilities
|
||||||
|
Financial
liabilities held for trading
|
2.6
|
0.7
|
0.3
|
|||
|
Due to
banks
|
1.8
|
3.2
|
0.7
|
|||
|
Due to
customers
|
140.5
|
143.0
|
122.0
|
|||
|
Issued debt
securities
|
28.2
|
29.4
|
31.2
|
|||
|
Other
|
17.8
|
17.5
|
16.4
|
|||
|
Subordinated
liabilities
|
5.2
|
4.5
|
5.9
|
|||
|
Total
liabilities
|
196.1
|
198.3
|
176.5
|
|||
|
Allocated
equity
|
6.9
|
6.9
|
7.0
|
|||
|
Total
allocated equity and liabilities
|
203.0
|
205.2
|
183.5
|
|||
|
Risk
Weighted Assets
|
76.8
|
95.0
|
91.7
|
|||
|
Assets
under Management
|
122.1
|
112.7
|
102.0
|
|||
Notes:
|
(1)
|
The
presentation of total amounts includes EUR 16.4 billion (30 June 2009: EUR
13.1 billion and 31 December 2008: EUR 6.4 billion) of net intercompany
receivables, which are netted with other segments within liabilities for
consolidation purposes.
|
|
(2)
|
Allocated
equity excludes the Dutch State’s share in the equity deficit related to
the shared assets within Central
Items.
|
Key
points:
|
§
|
Total assets
and total liabilities are relatively stable quarter-on-quarter and show an
11% increase compared to 31 December 2008. The key points noted below
therefore relate to year-to-date
movements.
|
|
§
|
Total assets
increased, mainly as a result of investment in high quality debt
securities for asset and liability management purposes in line with the
Dutch State acquired businesses’ strategic funding plan, to improve the
liquidity position and as a result of higher settlement balances as at 30
September 2009. Loans and receivables – customers has remained stable as
the increase in gross balances is partly offset by increased loan
provisioning.
|
|
§
|
The total
liabilities have increased compared to 31 December 2008 and this is mainly
attributable to an increase in savings and current account balances for
both consumer and commercial customers - largely in line with the Dutch
savings market - and the placement of a EUR 2 billion Covered Bond.
Subordinated liabilities increased due to a EUR 800 million Mandatory Convertible Tier-1
Security with the Dutch
State.
|
|
§
|
Assets under
Management (‘AuM’) in Private Clients increased mainly as a result of the
improvement in market conditions and net inflow since 31 December
2008.
|
|
§
|
The reduction
of risk weighted assets mainly reflects the impact of the Credit Default Swap transacted
with the Dutch State through which ABN AMRO Bank N.V. has purchased credit protection on
a EUR 34.5 billion portfolio of own originated residential
mortgages.
|
|
§
|
The Dutch Minister of Finance has
made a proposal to the Dutch Parliament on the capitalisation of the Dutch State acquired businesses
until legal
separation
on 19 November 2009 and the proposal includes the impact of a transaction in
respect of the EU Remedy. The resulting capital actions are to ensure that
before legal demerger, the Dutch State acquired businesses are
adequately capitalised.
|
5
APPENDIX
II Financial results and position of the
RBS acquired businesses
Results
of the RBS acquired businesses
|
EUR
in millions
|
2009
|
2008
|
||||||||
|
YTD
|
Q3
|
Q2
|
YTD
|
Q3
|
||||||
|
Profit and
Loss
|
||||||||||
|
Net interest
income
|
1,284
|
501
|
442
|
1,909
|
508
|
|||||
|
Net fee and
commission income
|
767
|
241
|
255
|
1,081
|
495
|
|||||
|
Net trading
income
|
671
|
525
|
645
|
(2,777)
|
(617)
|
|||||
|
Results from
financial transactions
|
(2,169)
|
(626)
|
(1,658)
|
(1,855)
|
(1,156)
|
|||||
|
Share of
result in equity accounted investments
|
(62)
|
(27)
|
(35)
|
17
|
3
|
|||||
|
Other
operating income
|
(197)
|
(170)
|
(27)
|
46
|
(1)
|
|||||
|
Operating
income
|
294
|
444
|
(378)
|
(1,579)
|
(768)
|
|||||
|
Operating
expenses
|
3,130
|
934
|
1,248
|
3,902
|
1,368
|
|||||
|
Operating
result
|
(2,836)
|
(490)
|
(1,626)
|
(5,481)
|
(2,136)
|
|||||
|
Loan
impairment and other credit risk provisions
|
1,664
|
551
|
684
|
600
|
358
|
|||||
|
Operating
loss before taxes
|
(4,500)
|
(1,041)
|
(2,310)
|
(6,081)
|
(2,494)
|
|||||
|
Tax
|
(864)
|
(168)
|
(475)
|
(1,407)
|
(564)
|
|||||
|
Loss
from continuing operations
|
(3,636)
|
(873)
|
(1,835)
|
(4,674)
|
(1,930)
|
|||||
The financial
results of the third quarter and the year to date results 2009 and the
comparative periods are presented above for the first time as part of this press
announcement.
The results of the
RBS acquired businesses are not yet indicative of the businesses that will
remain to form the basis of the future RBS N.V., post legal separation and after
the disposal of the identified non-core businesses. This is due to the inclusion
of some non-core activities, such as the retail and commercial businesses
predominately in Asia, the impact of business and asset transfers to other parts
of the RBS Group and the continued integration activities, including
right-sizing and operating model initiatives that lead to costs now to bring
savings in future.
Third
quarter results 2009 compared to second quarter results 2009
Key
points:
|
§
|
Total income
is now positive at EUR 444 million, improving from a negative income of
EUR 378 million in the second
quarter.
|
|
§
|
Net interest
income improved by 13% to EUR 501 million reflecting the recovery of
interest margins in the financial markets which has been witnessed since
the second quarter of 2009. Net interest income also continued to be
affected in second quarter of 2009 by the transfers of balances to RBS,
that were not repeated at the same levels in the third
quarter.
|
|
§
|
Non-interest
income in the third quarter benefited from substantially lower losses on
the fair valuation of own debt, lower losses on the sale of credit
portfolios to RBS, gains on
the allocation of a remaining Group ALM portfolio to the RBS acquired
businesses and lower losses on the credit default swap hedge
portfolio used to hedge the loan
book.
|
|
§
|
Other
operating expenses decreased mainly as a result of the continuing
reduction in personnel costs and general administrative costs as business
activities have been transferred to
RBS.
|
|
§
|
Loan
impairment provisions have decreased by EUR 133 million to EUR 551
million. The loan impairments comprise of provisions predominantly against
commercial loan portfolios but also consumer and bank loans. The second
quarter included higher specific provisions against corporate loans in
comparison to the third
quarter.
|
Year to date results 2009 compared to
year to date results 2008
Key
points:
|
§
|
Total income
is now positive at EUR 294 million and improved from negative income of
EUR 1,579 million.
|
|
§
|
Net interest
income decreased by EUR 625 million to EUR 1,284 million reflecting the
de-leveraging of the balance sheet following sales and transfers to other
parts of the RBS Group and interest margin pressures from an increase in
the funding and liquidity costs over the period. In addition the transfer
of businesses such as conduits to RBS Group has impacted net interest
income.
|
6
|
§
|
Net fee and
commission income decreased by EUR 314 million to EUR 767 million mainly
as a result of lower brokerage fees due to business transfers and reduced
market activity.
|
|
§
|
Trading
income benefited from lower credit valuation adjustments against monolines
(EUR 1,205 million compared to EUR 2,124 million in the same period in
2008), lower write downs in collateralised debt obligations (EUR 211
million compared to EUR 1,089 million in the same period in 2008), and an
increase in the equities business. Trading income also benefited from
lower credit losses on trading counterparties, which amounted to EUR 20
million for the current period compared to losses in the comparative
period in 2008 of EUR 553 million, for the majority relating to losses on
Lehman Brothers.
|
|
§
|
The monoline
exposure and collateralised debt obligations (‘CDOs’) are now essentially
transferred to RBS plc and will thus not form part of the ongoing
activities of the future RBS N.V. The equities business, with the
exception of the US equities business, however, will remain a core
business of the future RBS N.V.
|
|
§
|
Results from
financial transactions decreased by EUR 314 million to a loss of EUR 2,169
million. This is mainly attributable to fair value losses on a portfolio
of credit default swaps used to hedge the loan book of EUR 1,100 million
following the tightening of credit spreads as compared to a small profit
on the hedge book of EUR 70 million in the comparative 2008 period. The
general tightening of credit spreads also resulted in fair value losses on
own debt designated at fair value attributable to changes in ABN AMRO’s
own credit spreads in 2009 compared to a significant gain in 2008. This
has been partially offset by comparatively lower losses of EUR 224 million
on the sale of credit portfolios to RBS in 2009, compared to losses of EUR
1,609 million in the same period in
2008.
|
|
§
|
The share of
results in equity accounted investments decreased by EUR 79 million to a
loss of EUR 62 million due to the impairment of an investment in an
infrastructure investment in the first half of
2009.
|
|
§
|
Other
operating income decreased by EUR 243 million to a loss of EUR 197 million
primarily relating to the disposal of our Asian retail and commercial
businesses.
|
|
§
|
Operating
expenses decreased by EUR 772 million, or 20%, mainly as a result of lower
personnel costs due to a decrease in staff numbers and reduced
remuneration levels. Operating expenses for 2009 also reflect the
impairment of goodwill relating to the disposal of our Asian businesses of
EUR 194 million.
|
|
§
|
Loan
impairment provisions have significantly increased by EUR 1,064 million to
EUR 1,664 million reflecting the 2009 adverse economic conditions and the
challenging credit environment.
|
Results
of RBS acquired businesses on a pro forma basis, excluding non-core and transfer
loss
Pro forma operating
income, operating expenses and loan impairments for the third quarter and year
to date 2009 are presented in the table below. Comparative numbers are not
available.
These pro forma
results include the activities of the RBS acquired businesses segment and
exclude the results on activities that are non-core and the results on the
transfer of portfolios and transactions to RBS. The excluded results are
predominantly the above mentioned losses on monolines and CDOs and the losses on
portfolios and transactions of other business activities that have been
transferred to the RBS Group.
The below pro forma
operating results do not include the shared assets that are part of the Central
Items of the Group and that will continue to remain on the balance sheet of the
future RBS N.V., after separation until disposal or alternative wind down, for
the economic benefit and risk of all three Consortium Members.
7
|
EUR
in millions
|
2009
( pro forma, excluding non-core
and
transfer loss)
|
|||
|
YTD
|
Q3
|
|||
|
Profit and
Loss
|
||||
|
Operating
income
|
1,405
|
544
|
||
|
Operating
expenses
|
2,185
|
590
|
||
|
Operating
result
|
(780)
|
(46)
|
||
|
Loan
impairments and other credit risk provisions
|
321
|
144
|
||
|
Operating
profit/(loss) before taxes
|
(1,101)
|
(190)
|
||
|
Tax
|
(212)
|
(31)
|
||
|
Profit/(loss)
from continuing operations
|
(889)
|
(159)
|
||
Key points to pro
forma results:
|
§
|
The pro forma
results excluding non-core and results on the transfer of businesses, show
a net loss year to date of EUR 889
million.
|
|
§
|
The pro forma
operating income is affected by the difficult market conditions and the
fair value losses of EUR 1,100 million on credit hedges for hedging the
loan book and include gains
on the allocation of a remaining Group ALM portfolio to the RBS acquired
businesses.
|
|
§
|
In respect of
operating expenses, the result can be attributed to the impact of cost
reductions lagging the business transfers. Initiatives to right size the
costs to the remaining business in the future RBS N.V. are being
undertaken.
|
8
Balance
Sheet information
|
EUR
in billions
|
RBS
Acquired Businesses
|
|||||
|
30
September 2009
|
30
June 2009
|
31
December 2008
|
||||
|
Assets
|
||||||
|
Cash and
balances with central banks
|
14.5
|
12.2
|
5.3
|
|||
|
Financial
assets held for trading
|
91.9
|
100.2
|
211.7
|
|||
|
Financial
investments
|
54.9
|
55.9
|
52.0
|
|||
|
Loans and
receivables – banks
|
46.2
|
39.0
|
66.4
|
|||
|
Loans and
receivables – customers
|
79.5
|
98.7
|
119.8
|
|||
|
Other
|
18.0
|
15.5
|
23.0
|
|||
|
Total
assets
|
305.0
|
321.5
|
478.2
|
|||
|
Liabilities
|
||||||
|
Financial
liabilities held for trading
|
77.7
|
79.3
|
191.8
|
|||
|
Due to
banks
|
74.2
|
75.4
|
95.0
|
|||
|
Due to
customers
|
54.8
|
69.5
|
87.0
|
|||
|
Issued debt
securities
|
70.7
|
72.7
|
79.4
|
|||
|
Other
|
15.0
|
11.7
|
11.4
|
|||
|
Subordinated
liabilities
|
7.5
|
7.7
|
7.6
|
|||
|
Total
liabilities
|
299.9
|
316.3
|
472.2
|
|||
|
Allocated
equity
|
5.1
|
5.2
|
6.0
|
|||
|
Total
allocated equity and liabilities
|
305.0
|
321.5
|
478.2
|
|||
|
Risk-weighted
assets
|
51.6
|
53.2
|
80.4
|
|||
Notes:
(1) Allocated
equity excludes the RBS share in the equity deficit in the shared assets within
the Central Items.
Key
points:
|
§
|
Total assets
and total liabilities of the RBS acquired businesses have reduced
significantly mainly due to the continued transfer of businesses and
activity to the RBS Group.
|
|
§
|
Trading
assets and liabilities reduced by EUR 120 billion and EUR 114 billion
respectively due to novations and a tightening of credit spreads of own
debt.
|
|
§
|
Loans have
reduced by EUR 42 billion due to maturing loans, transfers to RBS
including conduits, and the reclassification of EUR 4 billion of loans
from our Asian retail and commercial businesses to held for
sale.
|
|
§
|
The funding
and liquidity position of the RBS acquired businesses (the future ‘RBS
N.V.’) remains strong. The decrease in risk weighted assets principally
reflects the impact of assets transfers over the
period.
|
RBS announced plans
to accede to the UK Asset Protection Scheme (’APS’) which is expected to cover a
pool of assets in the future RBS N.V. This will help to further strengthen the
capital position and de-risk the future earnings of the future RBS N.V.
businesses. The APS and capital issuance plans agreed by the UK government will
significantly strengthen the RBS Group capital base ensuring the future RBS N.V.
will be part of a strong group. The future independent RBS N.V. will to continue
to comply with Dutch Central Bank minimum liquidity and solvency
requirements.
For
further information regarding the results of RBS Group please refer to the RBS
results for the nine months ended 30 September 2009 published on 6 November 2009
(www.RBS.com).
9
APPENDIX
III - Financial
results and position of the Group
Set out below is a
summary of the ABN AMRO Group results and financial position.
Results
of the Group
|
EUR
in millions
|
Excluding
consolidation effect (non-GAAP
measurement)
|
IFRS
|
||||||||||||
|
2009
|
2008
|
2009
|
2008
|
|||||||||||
|
YTD
|
Q3
|
Q2
|
YTD
|
Q3
|
YTD
|
YTD
|
||||||||
|
Profit and
Loss
|
||||||||||||||
|
Net interest
income
|
3,380
|
1,046
|
1,122
|
4,269
|
1,596
|
3,369
|
4,229
|
|||||||
|
Net fees and
commissions income
|
1,689
|
561
|
558
|
2,068
|
702
|
1,689
|
2,068
|
|||||||
|
Net trading
income
|
693
|
524
|
608
|
(3,041)
|
(759)
|
693
|
(3,041)
|
|||||||
|
Results from
financial transactions
|
(2,136)
|
(580)
|
(1,559)
|
(1,669)
|
(988)
|
(2,132)
|
(1,701)
|
|||||||
|
Share of
result in equity accounted investments
|
35
|
8
|
10
|
102
|
18
|
35
|
102
|
|||||||
|
Other
operating income
|
37
|
(118)
|
69
|
252
|
61
|
37
|
252
|
|||||||
|
Income from
consolidated PE holdings
|
-
|
-
|
-
|
-
|
-
|
342
|
1,583
|
|||||||
|
Operating
income
|
3,698
|
1,441
|
808
|
1,981
|
630
|
4,033
|
3,492
|
|||||||
|
Operating
expenses
|
5,931
|
1,888
|
2,188
|
7,050
|
2,404
|
6,261
|
8,551
|
|||||||
|
Operating
result
|
(2,233)
|
(447)
|
(1,380)
|
(5,069)
|
(1,774)
|
(2,228)
|
(5,059)
|
|||||||
|
Loan
impairments and other credit risk provisions
|
2,502
|
793
|
1,028
|
986
|
507
|
2,502
|
986
|
|||||||
|
Operating
loss before taxes
|
(4,735)
|
(1,240)
|
(2,408)
|
(6,055)
|
(2,281)
|
(4,730)
|
(6,045)
|
|||||||
|
Tax
|
(973)
|
(224)
|
(551)
|
(1,367)
|
(453)
|
(968)
|
(1,357)
|
|||||||
|
Loss
from continuing operations
|
(3,762)
|
(1,016)
|
(1,857)
|
(4,688)
|
(1,828)
|
(3,762)
|
(4,688)
|
|||||||
|
Profit from
discontinued operations net of tax
|
100
|
1
|
96
|
16,456
|
10,711
|
100
|
16,456
|
|||||||
|
Profit/(loss)
for the period
|
(3,662)
|
(1,015)
|
(1,761)
|
11,768
|
8,883
|
(3,662)
|
11,768
|
|||||||
Notes:
|
(1)
|
Consolidation
effect is the impact per line item of the private equity investments which
are required to be consolidated under International Financial Reporting
Standards (IFRS). Private equity investments are not considered
part of the banking
activities.
|
The Group's third quarter 2009 results
from continuing operations have improved compared to the second quarter
2009 as discussed in
appendices I and II.
A gain of EUR 96 million attributable to
Banco Santander S.A. (Santander’s) remaining acquired businesses in ABN AMRO Group was reported as profit from discontinued
operations net of
tax in the second
quarter. The 2008 profit from discontinued operations net
of tax includes the gains on sale of Asset Management, Banca Antonveneta and
Brazil.
A loss resulted for the remaining Shared
Assets, reflecting the continued winding down of the Shared Assets and
allocations of remaining Group ALM portfolios to the Consortium Members’
acquired businesses.
10
Balance
Sheet information
|
EUR
in billions
|
Group
|
|||||
|
30
September 2009
|
30
June 2009
|
31
December 2008
|
||||
|
Assets
|
||||||
|
Cash and
balances with central banks
|
15.1
|
18.9
|
5.9
|
|||
|
Financial
assets held for trading
|
95.3
|
101.2
|
212.7
|
|||
|
Financial
investments
|
75.7
|
71.4
|
67.1
|
|||
|
Loans and
receivables - banks
|
55.6
|
52.8
|
75.6
|
|||
|
Loans and
receivables - customers
|
230.5
|
246.9
|
270.5
|
|||
|
Other
|
28.6
|
32.0
|
35.0
|
|||
|
Total
assets
|
500.8
|
523.2
|
666.8
|
|||
|
Liabilities
|
||||||
|
Financial
liabilities held for trading
|
80.3
|
80.0
|
192.1
|
|||
|
Due to
banks
|
63.8
|
68.8
|
94.6
|
|||
|
Due to
customers
|
195.3
|
204.0
|
209.0
|
|||
|
Issued debt
securities
|
98.9
|
102.1
|
111.3
|
|||
|
Other
|
33.6
|
39.9
|
29.2
|
|||
|
Subordinated
liabilities
|
12.8
|
12.2
|
13.5
|
|||
|
Total
liabilities
|
484.7
|
507.0
|
649.7
|
|||
|
Total
equity
|
16.1
|
16.2
|
17.1
|
|||
|
Total
equity and liabilities
|
500.8
|
523.2
|
666.8
|
|||
|
RWA
|
130.8
|
150.9
|
176.0
|
|||
|
BIS
ratio (percentages)
|
||||||
|
Core tier
1
|
13.09
|
11.94
|
10.10
|
|||
|
Tier
1
|
15.06
|
13.31
|
10.88
|
|||
|
Total BIS
ratio
|
20.17
|
17.93
|
14.43
|
|||
The decrease of the
Group’s total assets of EUR 22.4 billion, or 4%, during the third quarter,
principally reflects the transfers of certain assets and activities from the ABN
AMRO Group to RBS, reducing the risk profile of the Group and supporting the
implementation of the strategy for the future RBS N.V.
The Group’s capital
ratios have continued to be well above the required capital ratios during
transition. ABN AMRO Group and its shareholders have plans in place to ensure
that at legal separation each separate bank is adequately capitalized and
capital relating to the Santander acquired businesses, net of an allocation of
capital to the remaining shared assets, has been repatriated to
Santander.
11
Signatures
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
|
ABN
AMRO HOLDING N.V.
|
||||||
|
Date:
|
27
November 2009
|
By:
|
/s/
Petri Hofsté
|
|||
|
|
Name:
|
Petri
Hofsté
|
||||
|
|
Title:
|
Group
Controller & Deputy Chief Financial Officer
|
||||
|
By:
|
/s/
Mark Boyle
|
|||
|
|
Name:
|
Mark
Boyle
|
||
|
|
Title:
|
Head
of Reporting & Policy
|
||