ABN Amro sets aside extra E901m for pensions
NETHERLANDS – ABN Amro has set aside an extra 901 million euros to cover is pension plans in the Netherlands, UK and Germany.
“For the pension plans in the Netherlands, United Kingdom and Germany, accumulated pension obligations (excluding future salary increases) exceeded the value of pension plan assets by 651 million euros as a 31 December 2003,” the bank said in its 2003 annual report.
“Taking into account a receivable from the pension fund, an additional obligation of 901 million euros has been provided for, of which 533 million euros (net 353 million euros) has been charged to shareholders’ equity and 368 million is recognised as an intangible asset under other assets.”
It added it expects to pay 464 million euros into the ABN Amro Pension Fund in 2004. As at the end of 2003 the fund was 50-50 invested in equities and debt, compared to 40% equities and 60% debt in 2002. The target allocation is 40%-50% equities and 50%-60% debt.
The report also said that the discount rate assumption was raised to 5.5% from 5.4%.
The bank said it would adopt International Financial Reporting Standards for external reporting from 2005, adding that it is training staff and top managers in the new rules.