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
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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.
