Monday, 9 November 2015 - 12:53
ABN Amro facing more fines as IPO looms; Profit boosted in Q3
ABN Amro is facing another fine due to interest rate derivatives, just weeks before the bank is expected to hit the IPO. The third quarter was kind on ABN Amro, with the bank making a profit of over half a billion euros. This is according to ABN Amro's third quarter report, NU reports. The Dutch Authority for Financial Market wants to impose a 750 thousand euro fine on ABN Amro due to interest rate derivatives that customers purchased from the bank between October 2010 and January 2013. According to the regulator, the bank did not treat customers fairly and professionally. The fine has not officially been announced because the bank is appealing against it. This is not the first fine imposed on ABN Amro this past month. The AFM imposed a 2 million euro fine on the bank last month for failing to maintain records of sold interest rate derivatives, making it impossible for the regulator to check whether the bank is complying with its laws. Last week it was announced that ABN Amro was fined 1.1 million euros by De Nederlandsche Bank and the regulator in Dubai for abuses in the Dubai branch. ABN Amro also released its third quarter figures on Monday. The bank made a net profit of 509 billion euros, 33 percent higher than in the same quarter last year, broadcaster NOS reports. Only 93 million euros was put into the contingency fund, used for bad loans, compared to last year's 287 million euros. The quarterly figures will be included in the prospectus for the bank's IPO, which is expected to be released this week. According to NOS, the prospectus is a comprehensive and detailed on the bank's state of affairs, strategy of the bank. The prospectus is also expected to give more details on the IPO, such as the date the bank is scheduled to hit the market, what percentage of the shares will be put up and an estimate of the price per share.