abn amro bank - hongkong - home amro presentation 29 mar… · abn amro bank a long international...
TRANSCRIPT
ABN AMRO: 180 years of (international) history
ABN AMRO is built on a rich history of offering financial services, starting with the establishment, in 1720, of the predeccessor of the oldest Dutch merchant bank, later MeesPierson;
One of our predeccessors organised the financing of the purchase of the Louisiana Territory by the U.S. from France, an agreement that doubled the size of the US;
ABN AMRO’s long history in Asia dates back to 1826, when it first began operations in Indonesia;
For centuries, the Dutch settlement in Deshima was Japan’s only window to the outside world. When the bank established its first office in Deshima in 1858, it began the development of international trade and related banking services of modern Japan. Our office in Singapore, also opened in 1858, is the oldest bank of this city state.
ABN AMRO has a
long history in
worldwide
financing of large
and complex deals
1720 1803 1881 1902 1999
Establishment of the
oldest Dutch merchant
bank, later MeesPierson
Purchase by U.S.
from France of
the Louisiana
Territory
Financing of the
Canadian Pacific
Railway
(3000 miles)
Financing of the
Beijing-Hankow
Railway (900
miles)
Opening largest
dealingroom of
Europe
The purchase of
Louisiana Koning Willem I Catharina de Grote
1824
Deshima
2010
Offices opened
in Deshima and
in Singapore
Establishment
Nederlandsche
Handelsmaatschappij
door Koning Willem I
Hope & Co places
first of many loans for
Catherina II of Russia
1788 1991
Merger ABN and
AMRO into
ABN AMRO
1858 1826
Merger ABNAMRO
and Fortis Bank
Nederland
Office opened in
Indonesia, first
office in Asia
Canadian Pacific Railway Dealingroom Amsterdam Head Office ABN AMRO
An overview of recent corporate actions
ABN AMRO Holding N.V. (‘ABN AMRO’) was acquired by a consortium of banks through RFS Holdings (‘RFS’) on 17 October 2007. The consortium consisted of The Royal Bank of Scotland, Fortis and Banco Santander;
In October 2008 the Dutch State acquired Fortis Bank Nederland (Holding) N.V., including its stake in RFS Holdings B.V.. Fortis Bank Nederland was separated from the exchange listed Fortis;
On 1 April 2010, the ABN AMRO business units that were acquired by the Dutch State were legally separated from the RFS Holdings B.V. and named ABN AMRO Bank N.V;
On 1 July 2010, ABN AMRO Bank N.V. and Fortis Bank Nederland N.V. were legally merged into the current ABN AMRO Bank N.V.
October 2007
Consortium of Fortis, RBS and
Banco Santander acquire
ABN AMRO Holding N.V. for
EUR 71bn or EUR 38 per share
Ownership ABN AMRO
1 July 2010
ABN AMRO standalone and FBN
merge to form a new bank with
strong Dutch roots
2007-2008
Fortis, RBS and Banco Santander
initiate integration of the acquired
parts of the former ABN AMRO
Group
Dutch network
Private Banking
Asset
Management
Wholesale
clients
Global clients
(Europe & Asia)
Antonveneta
Banco Real
October 2008
Dutch government takes control
over FBN and certain former ABN
AMRO Group activities acquired
by Fortis
- Dutch network
- Private Banking
On 1 July 2010 ABN AMRO
and Fortis Bank Nederland
were merged into a strong
combined Dutch bank, giving
us the opportunity to further
build the bank on proven
values.
A strong Dutch bank with selected international presence
Present in 28 countries and
territories covering three
time zones
The Netherlands continues
to be the home market for
commercial and retail
clients
Outside the Netherlands,
ABN AMRO is present in all
major financial centres,
countries and territories
required to:
Support Dutch clients
abroad
Serve specialist
businesses such as
Brokerage, Clearing
& Custody, Energy,
Commodities &
Transportation and
International Private
Banking
1. serviced from Denmark
2. serviced from Hong Kong
Americas
Brazil
Curaçao
United States
Americas
Brazil
Curaçao
United States
Europe, Middle East and Africa
Belgium
Botswana
Denmark
France
Germany
Greece
Guernsey
Italy
Jersey
Luxembourg
Netherlands
Norway
Poland
Spain
Turkey
United Emirates
United Kingdom
Sweden(1)
Switzerland
Europe, Middle East and Africa
Belgium
Botswana
Denmark
France
Germany
Greece
Guernsey
Italy
Jersey
Luxembourg
Netherlands
Norway
Poland
Spain
Turkey
United Emirates
United Kingdom
Sweden(1)
Switzerland
Asia & Pacific
Australia
China(2)
Hong Kong
India
Japan
Singapore
Asia & Pacific
Australia
China(2)
Hong Kong
India
Japan
Singapore
Strategic focus on key themes lead to first tangible results
FINANCIAL AMBITION Target cost / income ratio 60-65% end 2012
Achievements 2010 ■ Improvement cost-income ratio, from 75% to 70%
■ EUR 350 million Integration synergies
■ Integration costs under control
GROWTH Growth in the Netherlands and a select number of global specialist markets
Achievements 2010 ■ Re-gain global leading positions in ECT and Clearing
■ Stable market share in mortgages and savings despite declining markets
CLIENT FOCUS Our clients' success is our success
Achievements 2010 ■ Rationalisation savings offering and simplification mortgage documentation
■ Local branches are given more authority to serve clients faster
■ Broadened and strenghtened product and (international) service offering
MODERATE RISK PROFILE We are entrepreneurial, but we never take risks that we do not understand
Achievements 2010 ■ Integrated risk governance and risk policy framework and defined new risk appetite
■ Funding sources further diversified and maturity profile extended
■ Good starting point to meet Basel 3 capital & liquidity requirements
CULTURE AND BEHAVIOUR Our goal is to achieve a collective result, not individual success
Achievements 2010 ■ Implementation of Corporate Values: Trusted, Professional, Ambitious
■ New collective labour signed and Social Plan implemented
SUSTAINABILITY We integrate long-term perspectives into all our decisions
Achievements 2010 ■ Renewed Sustainability strategy launched
■ Businesses have sustainability objectives going forward
■ On-track to clear diversity targets by 2014
Full year 2010 results Underlying profit rose significantly year-on-year
Reported net result for the period 2010 amounted to a loss of EUR 414 mln, impacted by separation and integration-related items;
Adjusted for these items (total of EUR 1,491 mln net) underlying net profit of EUR 1,077 mln increased strongly;
Increase was mainly driven by a higher net interest income and lower loan impairments.
Income statement
Reported Underlying
in EUR mln 2010 2009 2010 2009 2010 2009 % change
Net interest income 4,905 4,268 0 0 4,905 4,268 15%
Non-interest income 1,892 3,081 -862 363 2,754 2,718 1%
Operating income 6,797 7,349 -862 363 7,659 6,986 10%
Operating expenses 6,229 5,549 894 310 5,335 5,239 2%
Loan impairments 837 1,585 0 0 837 1,585 -47%
Operating profit before tax -269 215 -1,756 53 1,487 162
Income tax 145 -59 -265 -79 410 20
Profit for the period -414 274 -1,491 132 1,077 142
Separation & integration-
related costs
Net interest income (in EUR bln) Operating expenses (in EUR bln, underlying) Loan impairments (in EUR bln)
4.34.9
0.0
2.0
4.0
FY 2009 FY 2010
5.2 5.3
0.0
2.0
4.0
FY 2009 FY 2010
1.60.8
0.0
2.0
4.0
FY 2009 FY 2010
-47%
2%15%
Our core values are at the heart of everything we do
Core Values
Trusted We strive for long term client relationships and when we make a promise, we always
live up to it.
Professional
Ambitious
We create solutions for clients that are simple, understandable and workable. We
know our solutions, our clients and the environment they are part of.
We are never satisfied and are always stretching our boundaries and striving to
achieve more for our clients.
ABN AMRO organisation structure
Vice-Chairman
& CFO
Jan van Rutte
Retail &
Private
Banking
Chris Vogelzang
Integration,
Communication
& Compliance
Risk
Management
& Strategy
Operations,
Property & IT
Johan van Hall
CEO
Gerrit Zalm
Caroline Princen Wietze Reehoorn
Bedrijven
(EUR <30m)
Hans Hanegraaf
Corporate Clients
(EUR 30-500m)
Ruut Meijer
Large Corporates & Merchant Banking
(EUR >500m)
Rutger van Nouhuijs
Commercial
& Merchant
Banking
Joop Wijn
Markets
Jos ter Avest
Commercial Banking International
Edzard Enschedé
ABN AMRO Asia
“Commercial Banking International services all ABN AMRO commercial banking clients,
from SME to Large Corporate”.
ID&JG
India
ABN AMRO Clearing
Australia
Foreign Exchange & Rates
Debt Solutions
Private Banking International
ABN AMRO Clearing
Energy, Commodities &
Transportation
Singapore
Securities Financing
Equity Derivatives
Commercial Finance
Private Banking International
ID&JG
ABN AMRO Clearing
Energy, Commodities & Transportation
Hong Kong
ID&JG
ABN AMRO Clearing
Japan Energy, Commodities & Transportation
China (serviced from Singapore & Hong Kong)
ID&JG
Energy, Commodities &
Transportation
Private Banking International
United Arab Emirates (Dubai)
Commercial Banking International*
Commercial Banking International*
*CBI Singapore scheduled for mid-2011 (local – Dutch - staff already present) and Hong Kong for Q4 2011.
Commercial Banking International
Dedication to Dutch linked Corporates
ABN AMRO bank has a clear Dutch footprint;
CBI’s focus is on those locations that are important to Dutch corporates.
SME to Large Corporate
CBI offers services to all Dutch corporates with a local banking need;
From a non-resident account for a small SME that requires full servicing and account access from
the Netherlands to a Multinational with its own local operation in Asia.
Some distinguishing factors of Commercial Banking International
One Global Relationship Manager for all our clients (international) needs supported by local RM’s;
Dutch language spoken throughout the ABN AMRO CBI network;
International and sector expertise to advise and inform on international business;
Access Online as strategic channel for payments and reporting, multi bank, multi country;
Client service model that gives client proximity, e.g. International Service desks in the NL for NL
based clients;
Cross border lending for our home banking clients without bank guarantees in our branch network.
CBI: supporting Dutch clients in their international needs
“CBI also functions as starting point for inbound business from Asia to the
Netherlands”.
1. Countries scheduled for 2011 and beyond are being serviced via PBA’s until Go live.
Country ‘live’ Country scheduled for ‘111 Strategic Ambition for ’12 and beyond1
Hong Kong
Singapore
Client servicing via Partner Banks
“ABN AMRO offers its clients a one-stop shop for all their international needs throughout our
network via one Global Relationship Manager and uniform (product) offering / online channels”.
AAB Commercial Banking International network Servicing our clients throughout the world
Commercial Banking International Asia
We offer our (future) clients in Hong Kong
Our deeply routed local network
- Trust companies, Law Firms, Export Credit Agencies (ECAs), Embassies and Chambers of
Commerce.
Competitive Product offering
- Accounts & Payments;
- Trade Finance: LCs, Guarantees, Collections;
- Markets: Forex, Interest rate, Deposits;
- Lending;
- NOTE: In Singapore and Hong Kong products will become commercially available in a
phased approach during 2011. Go ‘live’ of the HK branch is scheduled for Q4 2011.
Tailored sales, servicing and support
- Both a Global Relationship Manager located in NL and a local Relationship Manager in
Hong Kong;
- Both a multilingual service desk for all international queries in the Netherlands and a local
service team based in Hong Kong.
Specialist local teams in Hong Kong
- For full servicing of other client wishes (e.g. Factoring, Private Banking).
CBI: local branches planned in Hong Kong and Singapore
Contact details – ABN AMRO Hong Kong
Sander Montanus
Head Commercial Banking International
Singapore & Hong Kong
Telephone: +65 68089248
Mobile: +65 85187851
E-mail: [email protected]
Edzard Enschedé
Managing Director
International Network C&MB
Telephone: +31 203832062
Mobile: +31 651458148
E-mail: [email protected]
“Please feel free to contact us with your international queries as together we can find solutions to
support your international business, also in the period until opening of our Hong Kong branch”.
Beryl van Wilgen
International Commercial Banker
Asia (based in NL)
Telephone: +31 104024809
Mobile: +31 622910181
E-mail: [email protected]
ABN AMRO on track to improve profitability of the bank
Reported net result for the period 2010 amounted to a loss of EUR 414 mln, impacted by separation and integration-related items
Adjusted for these items (total of EUR 1,491 mln net) underlying net profit of EUR 1,077 mln increased strongly
Increase in underlying net profit was driven by
- operating income up 10% year-on-year
- loan impairments decreased 47% year-on-year
Underlying cost/income ratio improved 5% points to 70%
First year of integration concluded successfully resulting in EUR 350 mln of integration benefits
At year-end 2010 ABN AMRO is adequately capitalised
Note:
1. Underlying figures are adjusted for an exceptional result on FCC, closing of EC Remedy and separation & integration costs (as defined hereafter)
2. Please note that the pro forma capital figures shown currently do not reflect the impact of the harmonisation of the determination of the RWA and the capital components
3. The Core Tier 1 ratio is defined as Tier 1 excluding all hybrid capital instruments divided by RWA
Key messages Key figures1
Ratings as of 1 January 2011
in EUR mln FY 2010 FY 2009
Underlying Operating income 7,659 6,986
Underlying Operating expenses 5,335 5,239
Loan impairment/credit prov. 837 1,585
Underlying Net profit 1,077 142
Reported Net profit -414 274
Underlying Cost/Income ratio 70% 75%
Total Assets (in EUR bln) 379.6 386.5
AuM (in EUR bln) 164.2 149.7
FTEs 26,161 29,551
in EUR bn
31 Dec
2010
30 Sept
2010
IFRS equity 12.1 11.7
Tier 1 capital² 14.8 15.0
Total capital² 19.3 19.7
RWA Basel II 116.3 118.8
Core tier 1 ratio² ³ 10.4% 10.1%
Tier 1 ratio² 12.8% 12.6%
Total Capital ratio² 16.6% 16.6%
Rating agency Long term LT outlook Short term
S&P A Stable A-1
Moody’s Aa3 Stable P-1
Fitch Ratings A+ Stable F1+
DBRS A(high) Stable R-1(middle)
Full year 2010 results Excluding EC Remedy shows a moderate growth of the balance sheet
Balance sheet impacted by divestment of EC
Remedy in 2010. Excluding this divestment
- total assets increased by EUR 4.5 bln
- loans and receivables to customers grew by
EUR 5.6 bln, mainly as a result of a growth in
the commercial loan portfolio and repurchase
agreements
- due to customers went up by EUR 10.0 bln
mainly due to an increase in repurchase
agreements and securities lending activities
The majority of Loans and receivables to customers
are residential mortgages (mainly Dutch) amounting
to EUR 161.3 bln at year-end 2010, almost
unchanged compared to the end of 2009
Due to banks decreased by EUR 15.9 bln as ECB
funding was redeemed in full and securities lending
transactions were significantly reduced
Subordinated liabilities decreased by EUR 3.7 bln
mainly as a result of the conversions of EUR 2.6 bln
of mandatory convertible securities into equity and a
buyback of GBP 600 mln of perpetual subordinated
securities
Total Equity increased by EUR 3.2 bln to EUR 12.1
bln primarily as a result of the abovementioned
conversion of EUR 2.6 bln securities into equity, the
remaining capital injection by the Dutch State (part of
2009 capital actions) and the full year result
Balance sheet
in EUR mln
31 Dec
2010
31 Dec
2009
Cash and balances 906 4,368
Financial assets held for trading 24,300 20,342
Financial investments 20,197 20,763
Loans and receivables - banks 41,117 45,062
Loans and receivables customers 275,755 280,729
Other 17,324 15,260
Total Assets 379,599 386,524
Financial liabilities held for trading 19,982 26,951
Due to banks 21,536 37,387
Due to customers 211,277 210,748
Issued debt 86,591 70,837
Subordinated liabilities 8,085 11,747
Other 20,016 19,899
Total Liabilities 367,487 377,569
Total Equity 12,112 8,955
Total Equity and Liabilities 379,599 386,524