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ABN Amro's institutional AUM fall

EUROPE – Institutional assets under management at ABN Amro’s asset management arm have fallen to around 86.3 billion euros at the second quarter from almost 88 billion euros at the first quarter of 2004.

The Dutch-based bank said in its second-quarter earnings report that 52% of the total 166 billion euros of assets under management at its asset management unit are for institutional clients. That’s 86.32 billion euros, according to IPE calculations.

The bank said AUM was stable at 166 billion euros in both the first and second quarters. In the first quarter it reported that institutional assets under management comprised 53% of AUM - or 87.98 billion euros.

The proportion of institutional assets under management has fallen from 55% a year ago.

Investment fund assets now account for 41% of assets under management, up from 40% in the first quarter and 38% a year ago. Private client assets are stable at seven percent.

Total staff numbers at the unit have declined 4.4% to 2,065 in the past year. It will transfer an unspecified number of staff to State Street as part of an outsourcing agreement announced in May. It added that “initiation” costs for this deal would lead to higher expenses in the second half of this year.

“This outsourcing agreement reflects the BU AM’s [business unit, asset_management] commitment to operational excellence and growth, while at the same time ensuring cost control,” the bank said.

Operating result at the arm rose 36.4% to 30 million euros from 22 million euros a year before. But it fell 21.1% from the first quarter of 2004’s 38 million euros. Total revenue at the division was up 13.3% on the year at 136 million euros, though it fell 5.6% from the first quarter’s 144 million euros.

Overall, ABN Amro reported a 26% rise in second-quarter net income to 987 million euros.

Managing board chairman Rijkman Groenink added the group would publish its first sustainability report on September 15. “This report will concentrate on the social and environmental aspects of our business and should be read in conjunction with out financial reporting.”

Meanwhile BNP Paribas said AUM at its asset management and services arm have risen to 13.1 billion euros, up 48% on the prior year period. Assets under custody have increased to 2.29 trillion euros from 1.75 trillion euros.

Second-quarter pre-tax income at the division rose 50.3% to 266 million euros.

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