1979: A YEAR OF CONTINUING GROWTH ANNUAL REPORT amrolJ scope INTERNATIONAL amro bank annual report 1979 amroscope Mr. O. Vogelenzang AMSTERDAM - The recently published 1979 Annual Report did much to emphasize Amro's international orientation, not only through the medium of the text, but also bv means of the colour photos from the world over. 'Not dissatisfied' Mr. O. Vogelenzang, Chairman of the Board of Managing INTERNATIONAL Amroscope International is produced specially for the personnel of Amro branches and offices abroad Published every two months. Editorial address: Bureau for Public Relations Herengracht 597 1017 CE Amsterdam-C. The Netherlands. Telephone: 283656 Telex: 11006 amro nl Editorial Staff: Johan B de Lange, Maike Versteeg and Tonnie Marrée Editor: Joop C. Twilt Articles published in Amroscope International may be reprinted with permission Directors, summarized the 1979 results in the following way: 'Even though it wasn't an easy year, we shouldn't be dissatisfied with the results. We have achieved reasonable growth; we have generally sustained our share prices, and we have succeeded in significantly expanding our foreign operations by opening branches in Tokyo and Singapore'. 'In contrast, interest margins have definitely deteriorated, and the increase in commission levels has been insufficient in relation to the increase in costs. I would however like to point out here that the 1979 results must be seen as part of a much longer process, one which applies to all banks. I'm thinking in particular of the increasing risks involved in lending to the corporate sphere, caused mainly by the erosion of reserves which many companies have suffered in recent years. This has led to a need for larger loans over a smaller spread'. Mr. Vogelenzang further added that the larger amounts which banks have been transferring to the Provision for General Contingencies in the last few years should be seen against this background. 'Continuing growth' A bank's state of business can generally be judged by a rise or fall in the balance sheet total. In Amro's case the consolidated total, which includes the figures for all companies in which Amro has an interest of 50% or more, amounted to about Dfl. 84 billion in 1979; this represents a rise of approximately Dfl. 11,5 billion, or 15.8% on the previous year. 1979 was thus a year of 'continuing growth', as the Board of Managing Directors described it in the annual report. Growth was not as large as in previous years, however; consolidated net income increased by only 8% in 1979, against 19.2% in"1978 to Dfl. 273.5 million. As a result of the increase in share capital, earnings per share in 1979 decreased from Dfl. 10.93 to Dfl. 10.53, whilst dividend remained unchanged. On 1 January 1980, the entire Amro concern had 23,223 employees, 172 of which were employed in the foreign branches. It was this last group which showed the strongest growth; on 1 January 1979, they numbered 96 in total. Consolidated Statement of Income (in Dfl. millions) Total income Total expenses Gross profit Transfer to provision for general contingencies Taxes Net income 1979 2231.5 1566.0 665.5 190.0 202.0 273.5 1978 2009.4 1420.2 589.2 155.0 181.0 253.2 The Amro Bank as focus of national and international financial activity.

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Amro Bank - Amroscoop International | 1980 | | pagina 1