Jobs and profits threatened at ABN Amro

The Dutch bank also warned that more investment banking jobs would go if markets weakened. Pointing to the US economic slowdown and a flatter yield curve affecting its interest income in Europe, the bank said that if these conditions prevailed for the rest of the year, it would be a challenge to equal the record profits of year 2000.

Rijkman Groenink, chairman of ABN Amro, made this comment as the group produced its first set of quarterly figures. These showed a 12% fall in earnings to €683m.

Part of the decline reflected the cost of a reorganisation set in train by Groenink. The bank said operating expenses were already falling, though full benefits would take four years to show through.