AMSTERDAM, 01/11/05 - ABN Amro is now forecasting second-half net profit excluding extraordinary items at least equal to the first-half figure (1.88 billion euros). In August, the bank was projecting a decline.

The banking group revised its earnings forecast upward after reporting yesterday a third-quarter net profit jump of 35 percent to 1.2 billion euros from 892 million a year earlier. Analysts had actually been forecasting an earnings decline.

The net figure includes book profits from the sale of a Brazilian insurance subsidiary and the Dutch investment bank Nachenenius Tjeenk. But even excluding these extraordinary gains totalling 234 million euros, ABN Amro posted higher profits than in the 2004 third quarter.

The improved earnings primarily reflect a strong performance from the bank's consumer arm (Consumer & Commercial Clients). This unit achieved net profit of 833 million euros, compared with 640 million in the third quarter last year. Thanks among other things to this division, third-quarter group revenues rose to 5.3 billion euros from 4.1 billion. Results in North America, Brazil and the new growth markets in particular boosted group results.

The investment banking division, Wholesale Clients, achieved a profit gain to 172 million euros from 133 million a year earlier. ABN Amro had earlier said that results of this division would still be under pressure in the third quarter. In December, the new divisional director Piero Overmars will present reorganisation plans for this division.

ABN Amro still expects the acquisition of Banca Antonveneta to be completed before the year-end, CFO Tom de Zwaan stated. The bank has already received all the necessary approvals from the authorities involved to allow it to take over the Italian bank. ABN Amro is also still expecting the acquisition to produce benefits of around 160 million euros. These benefits are expected to be realised two years after the takeover.