NETHERLANDS – Net profit at ABN Amro’s asset management division fell 15.2% in the first half, hit by weak conditions in the global market.

The Dutch bank said net profit at the unit fell to 28 million euros in the first half of 2003, down from 33 billion euros in the same period in 2002. Revenues at the business unit were down 18.5% at 229 million euros, from 281 million euros.

“The performance of business_unit Asset Management for the first half of 2003 was affected by weak global market conditions,” the bank said. “Revenues were lower due to a reduction in the value of assets under management, changes in the asset mix and lower performance fees.”

Assets under management at the unit stood at 154 billion euros at the end of the first half – down seven percent from 166 billion euros a year ago. The asset mix of 46% equities, 41% in fixed income and 13% in cash and other compares with 49%, 39% and 12% respectively a year ago.

“The composition of the mandates remained relatively stable with 55% institutional clients, seven percent private clients and 38% funds,” the bank said.

ABN Amro Asset Management manages around 11.4 billion euros in European pension fund assets.

On a quarterly basis, second quarter revenues were up 10.1% on the first quarter of this year, but down 12.4% on the second quarter of 2002.

The Amsterdam-based bank reported that overall second-quarter net profit rose to 782 million euros from 534 million a year ago and 690 million in the first quarter of 2003. "Based on the outlook for the remainder of the year, we expect the second half of this year to be better than the same period last year," said chief executive Rijkman Groenink.