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Results 2001

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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Results 2001

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  1. Results 2001 14 February 2002

  2. Results 2001 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

  3. Results 2001 ABN 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

  4. Results 2001 Operating 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%

  5. 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

  6. Results 2001 C&CC was the main contributor to the operating result in 2001

  7. % 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

  8. 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

  9. Results 2001 Expenses 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

  10. Results 2001 The 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

  11. Results 2001 Asset Quality and Provisioning

  12. Results 2001 Higher provisioning reflects poor market conditions . . . RWA EUR bn 39bp 35bp 52bp 26bp 23bp Risk provisioning as a % of RWA (right hand scale)

  13. Results 2001 Higher 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

  14. 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

  15. Results 2001 Limits/exposures are well diversified . . .(December 2001)

  16. 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

  17. 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

  18. Results 2001 Capital Management & Ratios

  19. Results 2001 Capital allocation in line with asset gathering model(in 2001 per SBU) Capital Allocation Revenues

  20. Results 2001 MfV-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

  21. 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

  22. Results 2001 Strategy & Strategic Initiatives

  23. Results 2001 The 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

  24. Results 2001 Decisions 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

  25. Results 2001 Dividend 2001 & Outlook 2002

  26. Results 2001 Dividend 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

  27. Results 2001 Outlook 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

  28. ANNEXES

  29. Results 2001 An 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

  30. Results 2001 Award-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

  31. Results 2001 Award-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)

  32. Results 2001 Impact 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%)

  33. Results 2001 Composition of revenue(EUR mln) Other (+22.4%) Trading (-1.1%) Commissions (-11.3%) Interest (+7.3%)

  34. Results 2001 Composition of revenue(EUR mln)

  35. Results 2001 Break-down net commissions Asset Mgt & Trust 17% Other 24% Securities 32% Payment Services 27%

  36. Results 2001 Trading 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

  37. 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

  38. Results 2001 WCS: 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

  39. Results 2001 WCS: 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

  40. 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%

  41. Results 2001 Consumer 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%

  42. Results 2001 C&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

  43. Results 2001 C&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%

  44. Results 2001 C&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%

  45. Results 2001

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