ABN Amro profit climbs to €543 million; apologizes for executive pay raise

Underlying net profit of ABN Amro increased by 44 percent compared to the first quarter of 2014. The first-quarter profit of the bank this year is at 543 million euros. The cost/income ratio of the bank improved from 56 to 58 percent. "We had a good financial start in 2015 with the highest level of profitability in the past 16 quarters," Gerrit Zalm, Chairman of the Managing Board is quoted saying. "The return on investment rose from 11 percent to 14 percent. Revenues increased by nine percent compared with the first quarter of 2014." The bank saw an increase in the number of loan applications from small enterprises increase for the first time in two years. The level of acceptance for loan applications was increasing for three consecutive quarters, according to the management. Zalm also expressed his regret for the hard-fought increase in fixed salaries of the board. "We sincerely regret the increase in fixed salary and the impact it has had on our clients, ABN Amro and employees, and other stakeholders," he said. "Hence we canceled the increase. We understand that it will take time for the public to regain confidence in ABM Amro." The bank also expressed regret yesterday for errors in penalties levied against mortgage customers who paid off, or refinanced mortgages early. The overcharging was brought to light by Dutch television programme Radar.