Bobsguide: ABN AMRO has slipped to a first-half loss of $3.76 billion due to its ownership of certain Royal Bank of Scotland (RBS) assets.
The bank, which has been nationalized by the Dutch government, said that it is currently undergoing the process of separating from some of the RBS operations, a move which is on schedule.
It noted that the RBS assets it has chosen to retain have performed well, stating: “The group’s half year results are modestly positive for the Dutch state acquired [RBS] businesses.”
However, ABN AMRO noted that rising loan impairments from “tightening credit spreads” caused its operations to deteriorate in the second quarter of the year.
The bank was unable to offer an outlook for the remainder of 2009, Reuters reports, stating only that it is expecting a “difficult year”.
It was recently announced that the Financial Services Authority is conducting a review of RBS’s purchase of ABN AMRO, which it completed in 2007.