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Results 2001. 14 February 2002 . Index. ABN AMRO at a glance 3 Group & SBU Performance 4 Asset Quality and Provisioning 11 Capital Management & Ratios 18 Strategy and Strategic Initiatives 22 Dividend 2001 & Outlook 2002 25 Annexes 28. ABN AMRO at a glance.

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slide1

Results 2001

14 February 2002

index
Results 2001Index
  • ABN AMRO at a glance 3
  • Group & SBU Performance 4
  • Asset Quality and Provisioning 11
  • Capital Management & Ratios 18
  • Strategy and Strategic Initiatives 22
  • Dividend 2001 & Outlook 2002 25
  • Annexes 28
abn amro at a glance
Results 2001ABN AMRO at a glance

Net profit 1997 - 2001

Return on Equity 1997 - 2001

Earnings per share 1997 - 2001

Strong Balance Sheet

Solid Credit Rating

Operating result 2001 per SBU

Total assets EUR 597.4 bn

Group capital EUR 34.0 bn

Risk-weighted assets EUR 273.4 bn

BIS tier 1 ratio 7.03%

BIS total capital ratio 10.91%

Long-Term

Moody’s Aa2

Standard & Poor’s AA

FitchIBCA AA

operating result relatively stable in 2001
Results 2001Operating result relatively stable in 2001 . . .
  • Revenues increased by 2.0% in 2001 compared to 2000 against the backdrop of weak market conditions and in the midst of a restructuring programme.
  • Expenses are trending down in the second half of 2001, even though full year costs show an increase
  • Operating result held up relatively well in 2001 due to client-product mix
  • Operating result excluding contribution EAB and impact exchange rate, down by 0.7%
and up in the fourth quarter
Results 2001. . . and up in the fourth quarter

Revenues FY 2001

% change

Commissions

(28%)

FY 01/ FY 00

Q4 01/

Q3 01

(EUR m)

Q4 01

Q3 01

Trading(8%)

1.1

(0.3)

5.0

2.0

4.3

(3.9)

4,674

3.456

1.218

73.9%

Revenues

Expenses

Operating result

Efficiency ratio

4,726

3.447

1.279

72.9%

Other(10%)

Interest (54%)

  • Fourth quarter revenues up despite worsening market conditions
  • Expenses remained relatively stable. Expenses down in WCS’ businesses where activity declined and up in C&CC businesses where activity increased
  • Improvement of efficiency ratio due to higher revenues and slightly lower costs
the relatively strong performance of c cc reflects robustness of retail franchises

% change

FY 01/ FY 00

Q4 01/

Q3 01

(EUR m)

Q4 01

Q3 01

Results 2001

The relatively strong performance of C&CC reflects robustness of retail franchises . . .

Operating result FY 2001

Brazil

(20%)

Netherlands(12%)

Revenues

Expenses

Operating result

Efficiency ratio

2,542

1,851

691

72.8%

2,534

1,739

795

68.6%

0.3

6,4

(13.1)

1.8

3.6

(2.1)

RoW(8%)

US

(60%)

  • Revenues held up well despite the economic slowdown in three home markets
  • NL: Revenues held up well in midst of restructuring programme
  • US: Strong increase in mortgage activity lead to higher revenues in 2001, but made increase in mortgage related expenses necessary
  • BR: Revenues held up well despite economic slowdown and crisis in Argentina
while in wcs the operating result was supported by the mix of clients products
Results 2001. . . while in WCS the operating result was supported by the mix of clients/products

% change

Revenues FY 2001

Commissions (36%)

FY 01/

FY 00

Q4 01/

Q3 01

(EUR m)

Q4 01

Q3 01

Trading (21%)

Revenues

Expenses

Operating result

Efficiency ratio

1,505

1,239

266

82.3%

1,540

1,357

183

88.1%

(2.3)

(8.7)

45.4

(3.1)

2.5

(26.9)

Other (5%)

Interest (38%)

  • Revenues in WCS held up well despite difficult market conditions.
  • GFM and other flow-related income were strong, while equities related business and corporate finance were relatively weak.
  • Expenses and efficiency ratio are trending downwards
expenses in wcs are trending down
Results 2001Expenses in WCS are trending down
  • TOPS has reduced its cost base
    • Accumulated P&L savings of approx. EUR 150 mln
  • Equities business and Corporate Finance have been right-sized
    • Measures have been taken to ensure an effective and sustainable presence in Asia and the United States
    • Cost base in Corporate Finance has been reduced by focusing on key sectors with best profit potential
    • Duplication between Corporate Finance and Client Coverage has been removed
  • Reduction in headcount took place towards the end of the year, most of the cost savings will be realised in 2002
the operating result in pcam was affected by weak market conditions
Results 2001The operating result in PCAM was affected by weak market conditions

% change

Revenues FY 2001

Q4 01/

Q3 01

FY 01/

FY 00

Commissions (69%)

(EUR m)

Q4 01

Q3 01

Revenues

Expenses

Operating result

Efficiency ratio

370

305

65

82.4%

330

279

51

84.5%

12.1

9.3

27.5

(2.2)

14.5

(38.3)

Trading (3%)

Other (5%)

Interest (23%)

  • Revenues are market-related and affected by weak market conditions in 2001
  • Increase in expenses driven by build-up costs related to restructuring
  • Assets under Management increased by 34% to EUR 172 bn in 2001
  • Assets under Administration decreased by 2% to EUR 105 bn in 2001
higher provisioning reflects poor market conditions
Results 2001Higher provisioning reflects poor market conditions . . .

RWA

EUR bn

39bp

35bp

52bp

26bp

23bp

Risk provisioning as a % of RWA (right hand scale)

higher provisioning was driven by
Results 2001Higher provisioning was driven by . . .
  • WCS: defaulting of several large corporations during the year
  • C&CC: high share of mortgages limits deterioration in asset quality. The main drivers are:
    • US: related to SME portfolio and leveraged finance book
    • Brazil: limited deterioration in consumer finance book in line withmarket developments
    • Netherlands: apart from foot & mouth disease in Q1, no significantdeterioration
  • PCAM: mainly driven by a few individual credit defaults in Q4
  • Corporate Centre: related to sovereign risk provisioning
but current provisioning remains within sustainable and acceptable levels
Results 2001. . . but current provisioning remains within sustainable and acceptable levels

EUR million

YTD Provisions / RWA

SBU

1Q01

2Q01

3Q01

4Q01

YTD

1Q01

2Q01

3Q01

4Q01

YTD

C&CC

176

220

200

206

802

0.11%

0.13%

0.13%

0.13%

0.51%

WCS

92

40

90

320

542

0.09%

0.04%

0.09%

0.32%

0.55%

PCAM

3

-1

2

10

14

0.05%

-0.02%

0.03%

0.15%

0.22%

Group

267

253

308

598

1426

0.10%

0.09%

0.11%

0.22%

0.52%

YTD Provisioning/ RWA

CC /

other

0.4%

PCAM

5%

0.3%

1%

0.3%

0.2%

0.2%

C&CC

0.1%

WCS

56%

0.1%

38%

0.0%

Q1

Q2

Q3

Q4

C&CC

WCS

ABN AMRO

limited exposure to non oecd countries december 2001

Middle East

1%(1%)

Europe

49% (50%)

Africa

0.4% (1%)

Results 2001

Limited exposure to non-OECD countries . . .(December 2001)

Eastern Europe

0.3% (2%)

North America

30% (26%)

Asia

7% (6%)

Asia Pacific Advanced

8% (8%)

Latin America

5% (5%)

( ) December 2000

leading to only a slight deterioration of asset quality in the portfolio of wcs
Results 2001. . . leading to only a slight deterioration of asset quality in the portfolio of WCS

Weighted average UCR by limits

3.20

3.00

2.80

2.60

2.40

2.20

Dec.00

Jun.01

Sep.01

Dec.01

TMT

ECP

ACD

mfv based capital management has meant
Results 2001MfV-based capital management has meant . . .
  • Pockets of surplus capital throughout the organisation have been identified for elimination
  • Divestiture programme for a number of countries and (mainly retail) operations
  • Reduction of capital allocation in WCS, using a.o. securitisation and loan pricing
  • Freed-up capital will be used to support asset-gathering model
  • Managing the level and quality of Tier I capital
improved level of tier i capital and next step is to improve the quality of it
Results 2001. . . improved level of Tier I capital and next step is to improve the quality of it

% change

31 12 01/

30 09 01

31 12 01/

31 12 00

(EUR bn)

31 12 01

30 09 01

Total assets

Shareholders’ equity

Group capital

Risk-weighted assets

Tier 1 ratio

Total capital ratio

597.4

11.8

34.0

273.4

7.03% 10.91%

597.7

11.1

32.7

274.2

6.47% 10.10%

(0.1)

6.3

4.0

(0.3)

10.0

(5.9)

4.5

3.6

the two main components of abn amro s strategy are
Results 2001The two main components of ABN AMRO’s strategy are . . .
  • Asset Gathering as the guiding strategy
    • C&CC is the central piece of the strategy
    • WCS and PCAM in support
    • Alignment to create synergies
  • MfV andEconomic Profit as the guiding principle
    • Capital and resource allocation
    • Rooting out of inefficiencies
    • Create sustainable business positions
decisions taken in support of this strategy
Results 2001Decisions taken in support of this strategy . . .
  • Restructuring in the Netherlands and ‘Zonder Omwegen’
  • Clustering of US C&CC businesses and divestiture of EAB
  • Reconfiguration and restructuring of WCS to create a long-term sustainable business position
  • The strategic alignment process between the three SBU’s
  • Reduction of capital in WCS
  • Qualitative improvement of Tier I capital
dividend remains unchanged
Results 2001Dividend remains unchanged
  • Full year dividend unchanged compared to 2000 at EUR 0.90
  • Reaffirming our believe in:
    • the potential of our business model
    • the restructuring process
    • the profitability in the years to come
outlook 2002
Results 2001Outlook 2002
  • No meaningful economic recovery until the end of the year
  • Revenues expected to be in line with 2001
  • Operating performance in the first half of 2002 will be lower than the first half of 2001
  • Slightly higher provisioning, in line with economic outlook
  • Lower expense level will offset the reinstated Dutch pension costs and slightly higher provisioning
an update on the restructuring programme in the netherlands
Results 2001An update on the restructuring programme in the Netherlands
  • 6,673 employees have opted to use voluntary staff reduction scheme
  • Staffing new organisation and further implementation new service concept can be started
  • Limited mismatch, which can be solved within the program or by limited recruiting
award winning performance products
Results 2001Award-winning Performance (Products)
  • Advised on 151 transactions worldwide with a total value of EUR 33 bn

M&A

Thomson Financial Securities Data, January 2002

  • In private equity, ABN AMRO is one of the few global players with a portfolio of over EUR 2.3 billion

Private Equity

Equity Capital Markets

  • # 5 bookrunner & Joint-Lead Manager of European equity issues
  • # 7 bookrunner & Joint-Lead Manager of international equity issues

Bondware, January 2002

  • Media Team ranked # 1 All-Europe Research Team in their sector
  • # 2 Global Co-ordinator/Bookrunner of all international equities in Transport sector

Institutional Investors, February 2001

Capital Data Bondware

Equities

Euroweek Review of the Year, Bond

Poll, January 2002

IFR, January 5, 2002

  • # 3 most impressive syndicate desk
  • # 3 best lead manager of bonds for European distribution
  • # 6 bookrunner of euro-denominated bond issues
  • # 8 arranger of worldwide syndicated loans

Global Financial Markets

Euroweek Review of the Year, 2001

  • # 2 Best arranger of Project Finance Loans
  • # 3 Best Service in arranging Project & Structured Finance

Loan Products

Petroleum Economist June, 2001

  • Best at Cash Management The Banker, September 2001
  • Cash Management - Service Contract of the Year: ABN AMRO - Shell The Banker, December 2001

Global Transaction Services

award winning performance clients
Results 2001Award-winning Performance (Clients)
  • ABN AMRO No. 3 in providing Best overall service to the Energy sector
  • ABN AMRO Rothschild No. 1 top Bookrunner and Joint Lead Manager of European Healthcare sector equity issues, 2001

Energy, Chemicals and Healthcare (ECH)

Petroleum Economist Energy Finance - 2001 Poll

Capital Data Bondware 12/01

Capital Data Bondware 12/01

  • ABN AMRO Rothschild No. 1 top Bookrunner and Joint Lead Manager of all European Telecoms and Technology sector equity issues in 2001

Telecom, Media and Technology (TMT)

Automotive, Consumer and Diversified (ACD)

  • ABN AMRO Rothschild No. 1 top Bookrunner and Joint Lead Manager of International equity issues in 2001 (ex US and Japan)

Capital Data Bondware 12/01

IFR Platinum

  • For 2001 ABN AMRO had a top 10 position as a provider of EUR denominated International Bonds for Financial & Banking Institutions

Financial Institutions and Public sector (FIPS)

impact of acquisitions and currency translation on profit and loss account
Results 2001Impact of acquisitions and currency translation on profit and loss account

Publishedchange

Impact ofcurrencies

Impact of acquisitions

Impact ofEAB

Organic

growth

(EUR m)

Revenues

Expenses

Operating result

Pre-tax profit

365 569

(204)

(1,112)

487

288

199

189

(692)

(579)

(113)

(79)

281

200

81

42

2.4%

3.6%

(0.7%)

(20.3%)

composition of revenue eur mln
Results 2001Composition of revenue(EUR mln)

Other (+22.4%)

Trading (-1.1%)

Commissions (-11.3%)

Interest (+7.3%)

break down net commissions
Results 2001Break-down net commissions

Asset Mgt

& Trust

17%

Other

24%

Securities

32%

Payment

Services

27%

trading break down 1997 2001 eur mln
Results 2001Trading break down 1997 - 2001(EUR mln)

97-1

97-2

98-1

98-2

99-1

99-2

00-1

00-2

01-1

01-2

stable portfolio composition by outstanding

NL

US

Brazil

Other

Results 2001

Stable portfolio composition(by outstanding)

Dec.01

Sept 2001

Jun 2001

Dec 2000

5%

25%

24%

36

2%

23%

%

70%

24%

5%

5%

57

%

5%

3%

69%

69%

68%

2%

2%

4%

2%

Wholesale

PCAM

C&CC

Other

Private Loans

( EUR bn - by outstandings)

200

180

160

140

120

100

80

60

40

20

0

Dec-00

Mar-01

Jun-01

Sep-01

Dec-01

Wholesale

C&CC

Private

Other

wcs 4 client bus organised globally by sectors by limits december 2001
Results 2001WCS: 4 Client BUs organised globally by sectors(by limits; December 2001)

WCS - Total Portfolio

WCS - Corporate Portfolio

TMT

FIPS

TMT

ACD

ECP

FIPS

ECP

ACD

FIPS

wcs corporate exposure for selected sectors by limits december 2001
Results 2001WCS: Corporate exposure for selected sectors(by limits; December 2001)

Oil & Gas

Utilities

Airlines

9.3% of portfolio

10.5% of portfolio

1.5% of portfolio

wcs corporate exposure for selected sectors by limits december 20011

UCR >=4

19%

UCR 1,2,3

81%

Results 2001

WCS: Corporate exposure for selected sectors (by limits; December 2001)

Telecom Services

Automotive

Technology

7.8% of portfolio

7.3% of portfolio

7.2% of portfolio

UCR >=4

UCR >=4

20%

18%

UCR 1, 2,3

UCR 1,2,3

82%

80%

consumer credit outstanding december 2001
Results 2001Consumer Credit Outstanding (December 2001)

By Geography

By Product

Rest of

Loans

Other

Europe,Mid

Overdraft

against

1%

1%

dle

shares

Credit cards

Asia

Rest of

1%

East,Africa

1%

Brasil

4.3%

Latin

0.9%

Personal

Mortgage

5.4%

America

Loans

loans other

0.1%

9%

3%

Auto Loans

Mortgage

USA

5%

loans USA

16.2%

14%

Mortgage

loans NL

65%

Netherlands

73.2%

c cc nl outstanding december 2001
Results 2001C&CC NL - Outstanding(December 2001)

C&CC NL Total Portfolio

December 2001

28%

72%

Commercial

Consumer

C&CC NL Commerical Portfolio by UCR

C&CC NL Commerical Portfolio by Product

December 2001

December 2001

0.4%

40.5%

46%

54%

59.1%

Corporate Clients

SME

UCR 1, 2 and 3

UCR >= 4

Not rated

c cc us outstanding december 2001
Results 2001C&CC US - Outstanding(December 2001)

80%

60%

UCR Percentage

40%

20%

0%

Dec.99

Dec.00

Jun.01

Sep.01

Dec.01

UCR 1, 2, and 3

UCR >= 4

UCR >= 4

Standard

38%

Federal

45%

LaSalle

55%

UCR

1/2/3

62%

c cc brazil outstanding december 2001 amounts in brl mln
Results 2001C&CC Brazil - Outstanding(December 2001; Amounts in BRL mln)

6,000

5,000

B

4,000

R

L

3,000

M

2,000

l

n

1,000

-

Dec.00

Jun.01

Sep.01

Dec.01

Car financing

Retail

Middle Corp

Middle

Not rated

Corp

7%

Car

17%

financing

44%

UCR >=4

29%

UCR 1/2/3

64%

Retail

39%