International
The Editor's Diary
Annual Report 1978
Senior
appoint*
ments
Staff journal of the ABN Bank, Amsterdam, Holland, and affiliations May 1979, No. 1
ABN Bank
ABN Banknotes
Looking back on 1978 with
confidence in 1979
Mr. J. de Jongh,
member of the
Managing Board
It is a good idea to pause
now and again on the thres
hold of past and future. The
turn of the year affords an
excellent opportunity for such
an exercise. But as the first
issue of ABN Banknotes Inter
national in 1979 will not be
published until May, by
which time the first quarter
will be behind us, I should
prefer to ally this message to
the recent appearance of our
Annual Report for 1978.
There are grounds for optimism
in the fact that the upward trend in
profit and business volume continu
ed during the year. With this fur
ther growth, the ABN has again
emphasized its prominent position
among the major internationally-
operating banks. As is often men
tioned abroad, it is remarkable that
a bank as large as ours should have
its seat of operations in a country
whose gross national product is less
than four times our balance sheet
total. A long, internationally-orient
ed mercantile tradition is among
the factors which have contributed
to this situation. Equally impor
tant, however, is the existence of a
Government which, in exercising its
supervisory role in the area of
banking, recognizes the contri
bution which a flourishing banking
sector can make to the growth of
economic activity.
Looking back on the economic
and political developments in 1978,
there is little cause for optimism
such as I have just expressed in
regard to the progress of the Bank's
affairs. Remembering the fall in oil
output from Iran and the develop
ments in Indochina, one can only
conclude that the world's problems
are increasing rather than declining.
The events in the Near East afford a
measure of relief, though even there
it is difficult to escape the impres
sion that it will be a long while
before a permanent solution is
found to the difficulties which in
recent decades have given rise to
armed conflict on numerous occa
sions.
The unrest in the financial world
was of comparable magnitude in
1978, and this was most clearly
manifested in the hectic fall in the
value of the U.S. dollar. But even in
this respect there is hope for sub
stantial improvement since the U.S.
Government, in the final quarter,
showed its willingness to take firm
measures to halt the anarchy sur
rounding its currency. With this, at
least one of the conditions for a
resumption of healthy economic
growth has been met.
As an internationally-operating
bank, the ABN is directly affected
by developments in the internatio
nal world of finance. We are also
frequently confronted with the
consequences of political unrest in
countries in which we and/or our
clients conduct business. Against
this background, profound respect
and gratitude are due to the mem
bers of our staff, whose effort and
dedication, often under very diffi
cult circumstances, enabled as
much to be achieved as is evidenced
by the Annual Report.
The growth of the Bank is fre
quently clearer from the events
which take place around us than
from figures alone. We have wit
nessed a further expansion of our
network of branches. In this con
text, the strengthening of our posi
tion in the U.S.A. by the acquisi
tion of practically the whole of the
equity of the LaSalle National Bank
merits particular mention. The plan
to improve the Head Office accom
modation has moved a step nearer
to realization with the purchase of
a site in a suburb of Amsterdam, on
which the new building will be
erected.
I am confident that, with the
support which you have demon
strated in the past, the Bank can
continue on its present path in spite
of all the unrest which is going on
in the world outside. In conclusion,
I would express the sincere hope
that 1979 may bring prosperity and
happiness to each and every one of
you. J. de Jongh
First, an apology for the late appearance of this first issue of 1979.
To prevent a recurrence of this situation, we would again appeal to
you, readers and fellow employees of the Bank, to get your eyes, minds
and pens working. Without your assistance, it is impossible to make a
good staff magazine. Your colleagues in other parts of the world are
interested in your working experiences, the achievements of your
branch sports club and life in your country. Above all. do not be put
off by a feeling (often misplaced) that you lack talent for authorship.
Just put your ideas down on paper in your own words and send us the
result. If you can illustrate your story with a photograph or two, so
much the better. If necessary and with your approval the item will
be edited to make it more suitable for publication. That, after all, is an
editor's job
Our address, in case you have mislaid it, is:
The Editor, ABN Banknotes International O.D. 50, ABN Bank, P.O.
Box 669, 1000 EG Amsterdam, The Netherlands.
On behalf of all readers, thanks in advance!
Continued expansion,
higher profit
Dr. C.J. Oort
Mr. J.H. Geertsema
Dr. C.J. Oort, advisor to the
Bank on international financial
matters and acting head of the
Directorate Liquidities has been
appointed to the Managing Board
with effect from 27th April 1979.
Mr. J.H. Geertsema, general ma
nager, who was attached to the
Directorate Liquidities has been
appointed to chief general mana
ger of this department with effect
from 1st May 1979.
Mr. H. Visser, chief general ma
nager and chairman of the Nether
lands Loan Committee, retired on
1st May 1979. He was succeeded
by Mr. J.J. Hamminga, chief gene
ral manager, who since 1973 has
headed the Administrative Direc
torate.
Mr. Hamminga was succeeded
by Mr. P. Ribourdouille, general
manager, who has been attached
to the Administrative Directorate
since 1976, and who was promoted
to chief general manager on the
occasion.
The next issue of ABN Bank
notes will feature interviews with
Dr. Oort and with Mr. Visser.
The climate in which the ABN
operated in 1978 was marked by a
low level of economic growth ac
companied by fluctuations, some
times severe, in the rates of ex
change of a number of currencies,
which also exerted an influence on
interest rates. Against this back
ground, it is gratifying to observe
that the Bank again achieved sub
stantial progress. This is most clear
ly reflected in the balance sheet
total, which rose by 19.8 from
f 63,600 million to f 76,200 mil
lion. How was this increase (of
nearly one-fifth) achieved?
Some f 6,900 million just over
half the increase in the balance
sheet total was in the shape of
loans. A substantial portion of this
sum was in the form of industrial
loans and those to family house
holds in the Netherlands.
Loans to industry in the Nether
lands increased by approximately
18 Under the influence of a rise
in investment - which, moreover,
was financed with bank loans to a
greater extent than in 1977 me
dium- and long-term loans rose by
about 23 Short-term loans
(chiefly in the shape of overdrafts)
displayed an increase of about
15 a portion of which was attri
butable to a build-up of stocks by
many companies.
Recent years have produced a
notable shift in the nature of the
undertakings to which the Bank
furnishes loans. In the early 1970s,
the emphasis lay on industrial com
panies; today, it is on firms in the
services sector. It would appear that
the changes in the structure of the
Dutch economy are clearly reflect
ed in the composition of our loan
portfolio.
Loans to family households in
creased by 36 in 1978. The great
er portion of the rise related to
home loans. Algemene Bank voor
Hypothecair Krediet provided ap
proximately 17,200 loans aggregat
ing nearly f 2,100 million. This
rapid rise served to substantially
increase our share of the home loan
market.
Consumer credit rose by 17 in
1978. Loans under the Planpoteek
scheme, introduced early in 1977,
increased by no less than 75
The success achieved in this area is
reflected in the recent introduction
of the Senior Planpoteek scheme.
(Continued on page 2, Col. 1)
Mr. H. Visser
Mr. J.J. Hamminga
Mr. P. Ribourdouille
