ABN AMRO reports $64.5mn net loss in fourth quarter

Dutch state-owned bank ABN AMRO, which is being readied for an eventual stock market flotation, fell to a loss in the fourth quarter and said loan impairments were likely to remain high this year.

The bank reported a net loss of 47mn euros ($64.5mn), hit by an annual bank tax of 106mn euros and higher loan impairments of 555mn reflecting the weak state of the domestic economy.

ABN AMRO, which had to be rescued in the 2008 crisis, has been slowly restructuring in the run-up to its planned sale, reporting a net profit of 390mn euros in the third quarter and a full-year profit of 1.16bn. It said 2013 marked the bottom of the economic cycle and saw glimmers of recovery - house prices have stabilised, mortgage applications have picked up, confidence has improved and economic growth is expected to resume this year.

“However, even if the economy does turn the corner, impairments are expected to remain elevated in 2014,” Gerrit Zalm, chief executive, said in a statement, citing the bank’s high exposure to the Dutch economy, where domestic spending has declined since 2008.