Nationalized Dutch bank ABN Amro’s retail banking arm has posted an underlying profit of EUR238m for the fourth quarter of 2014, an increase of 49% compared to EUR160m a year ago.
Operating income rose by 8% to EUR1.02bn, versus EUR947m in the fourth quarter of 2013.
Quarterly net interest income soared grew by 10% to EUR885m compared with EUR806m in the fourth quarter of 2013.
The unit’s operating expenses stood at EUR597m, a rise of 11% from EUR538m in the previous year quarter.
A restructuring provision of EUR60m served as the driving factor behind a rise of 43% in personnel expenses to EUR186m from EUR130m in the year ago quarter, the lender said in a statement.
The retail banking unit’s impairment charges on loans and other receivables witnessed a sharp decline of 45% to EUR99m, from EUR178m in the fourth quarter of 2013. The significant drop was primarily the result of lower impairments on mortgages.
Net fee and commission income too posted a drop of 11% to EUR124m as compared to EUR140m in the year ago quarter.
Overall, ABN AMRO Group posted a net profit of EUR400m in the fourth quarter, versus a year-ago net loss of EUR47m.