ABN AMRO reports record net profit Full Year Results 2003 4 February 2004.

ABN AMRO reports record net profit Full Year Results 2003

4 February 2004

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Record net profit of EUR 3,161 mln and proposed dividend up 5 cents

Compared to the full year results 2002

Net profit up by 31.1%

Broad based revenue growth (2.8%)

Record high operating result (EUR 6,208 mln)

Provisioning down (-24.8%)

Substantial improvement in efficiency ratio to 67.0%

Tier 1 ratio (8.15%) beats target for year

Increase in total dividend to EUR 0.95

Intention to withdraw Dutch preference shares

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Record high 2003 operating result, even when adjusting for one-offs

Adjusted for one-

offs, the operating

result amounts to

EUR 6,047 mln.

This is a record high.

Adjusted for one-

offs, the net profit is

EUR 3,048 mln

(+27.0% y-o-y)

0 4

Efficiency ratio (%)

Efficiency ratio is trending down, due to improvement in nearly all BUs

The efficiency ratio of BU NL was positively affected by one-offs, while the efficiency ratio of BU PC was negatively

affected by one-offs in 2003. On an adjusted basis, the efficiency ratio of both BUs shows a downward trend

40

50

60

70

80

90

100

Group BU NA BU NL BU Brazil BU RoW WCS BU PC BU AM

2001 2002 2003

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Highlights of 2003

Continued client focus Increased customer satisfaction

in BU NL. Higher client

revenues in WCS

Selective divestitures and acquisitions to

increase long-term growth prospects

Business mix optimisation

Value of ABN AMRO Brand Rebranding

Optimise Corporate Governance Nomination rules SB and MB, abolishment of

Stichting Prioriteit

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Intention to withdraw Dutch preference shares

New Corporate Governance Code (the Tabaksblat code)

We will apply all principles of the code and implement all but a few best practice provisions

We will report extensively on these issues in our 2003 Annual Report and we will have a discussion on our corporate governance during the General Meeting of Shareholders

We will withdraw our defence mechanism. In this regard it is our intention to withdraw the Dutch preference shares on repayment of the nominal value and accrued dividend over 2004

Operating Performance

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4.0

5.0

6.0

7.0

2002 2003

Reported operating result FX effect

16.0

17.0

18.0

19.0

20.0

2002 2003

Reported revenues FX effect

FY operating result increased by 24% at constant exchange rates

Revenues, adjusted for currency effect, increased by 12.4% in 2003 vs 2002

Operating result, adjusted for currency effect, increased by 24.0% in 2003 vs 2002

12.4%

2.8% 13.8%

24.0%

Net profit, adjusted for currency movements, increased by 41.7%

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Revenues Q4 2003

Highest ever quarterly profit

Revenues were slightly up, despite the end of the refinancing boom in the US

Operating expenses were up due higher bonus accruals in WCS, the implementation of the new collective labour agreement in BU Brazil, and the acquisition of Sudameris

Operating result down, but net profit reached record high level in Q4

% change

(EUR mln) Q4 03 Q3 03Q4 03/Q3 03

fy 03/fy 02

Revenues 4,861 4,827 0.7 2.8

Expenses 3,333 3,195 4.3 (1.9)

Operating result 1,528 1,632 (6.4) 13.8

Net profit 857 832 3.0 31.1

Efficiency ratio 68.6% 66.2%

WCS30.7%

PC5.3%

AM2.9%

Other8.0%

C&CC53.1%

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BU NL has performed well in a recessionary environment

Revenues were stable when adjusted for EUR 120 mln revenue related to the release of credit spreads overaccrued in Amstel securitisation vehicle

Improvement in customer satisfaction, particularly in both mass affluent segments and SME

Expenses were up by 4.5% due to streamlining initiatives (EUR 23 mln)

Adjusted for incidentals, the operating result was down by 3.1%

% change

(EUR mln) Q4 03 Q3 03Q4 03/Q3 03

fy 03/fy 02

Revenues 910 790 15.2 7.6

Expenses 656 628 4.5 (1.4)

Operating result 254 162 56.8 48.9

Net profit 121 63 92.1 52.0

Efficiency ratio 72.1% 79.5%

Revenues Q4 2003

Commissions 15.5%

Other 0.3%

Interest84.2%

0 11

% change

(EUR mln) Q4 03 Q3 03Q4 03/Q3 03

fy 03/fy 02

Revenues 942 1,144 (17.7) (0.3)

Expenses 570 593 (3.9) (2.1)

Operating result 372 551 (32.5) 1.6

Net profit 219 300 (27.0) 12.0

Efficiency ratio 60.5% 51.8%

BU NA results are in line with expectations

The US dollar depreciated on average by 6.4% against the Euro during Q4

In local currency terms:

Revenues were down by 11.8% due to a 30% decrease in mortgage revenue and a USD 25 mln addition to the mortgage liability reserve

Expenses are up by 2.8% due to USD 20.5 mln one-off costs and the impact of FAS 91

Revenues Q4 2003

Interest59.0%

Other 22.2%

Trading3.3%

Commissions 15.5%

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Volume growth in BU Brazil is gaining momentum

The Brazilian real depreciated by 4.9% against the Euro compared to Q4

Operating and net result of Sudameris amounted EUR 24 mln and EUR 7 mln

In local currency and excluding the impact of Sudameris:

Revenues decreased by 7.8% as a result of declining interest income on the investment portfolio

Expenses increased by 12.6% due to collective labour agreement

% change

(EUR mln) Q4 03 Q3 03Q4 03/Q3 03

fy 03/fy 02

Revenues 463 447 3.6 (2.4)

Expenses 326 262 24.4 (10.7)

Operating result 137 185 (25.9) 16.0

Net profit 64 85 (24.7) (47.3)

Efficiency ratio 70.4% 58.6%

Revenues Q4 2003

Trading2.4%

Interest75.1%

Commissions 14.5%

Other 8%

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Integration of Sudameris is ahead of plan

Management presentation and road shows throughout the country immediately after completion

HR, Treasury, Finance and Risk Management under the responsibility of BU Brazil management

Annualised synergies of EUR 14 mln realised in 2003

18 working groups have been delegated the authority to further manage the integration

Integration costs in 2004 will lead to temporary deterioration of the efficiency ratio

Annual synergies of BRL 300 mln per annum as of 2005

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Results C&CC RoW are driven by strong performance of Bouwfonds

Bouwfonds: revenues up by 4.7% due to mortgage refinancing and better margins. Operating result stable due to investments in special projects and performance based compensation

NGM: improvement in Asian economic environment led to release of Net Interest Income accruals

% change

(EUR mln) Q4 03 Q3 03Q4 03/Q3 03

fy 03/fy 02

Revenues 268 251 6.8 (2.5)

Expenses 189 153 23.5 (4.3)

Operating result 79 98 (19.4) 0.8

Net profit 47 72 (34.7) 12.9

Efficiency ratio 70.5% 61.0%

Revenues FY 2003

Bouwfonds & other50%

NGM Europe19%

NGM Asia31%

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C&CC revenues were flat due to balanced business mix

Limited revenue decrease as EUR 120 mln revenue in BU NL offset decline in US mortgage revenues (-30.7% in local currency)

Operating expenses increased led by incidentals in BU NL (EUR 23 mln) and BU NA (EUR 17 mln) and performance-based compensation at Bouwfonds

% change

(EUR mln) Q4 03 Q3 03Q4 03/Q3 03

fy 03/fy 02

Revenues 2,583 2,632 (1.9) 1.5

Expenses 1,741 1,636 6.4 (3.6)

Operating result 842 996 (15.5) 10.8

Net profit 451 520 (13.3) 6.0

Efficiency ratio 67.4% 62.2%

Revenues Q4 2003

Netherlands35.2%

RoW10.4%

Brazil17.9%

NA36.5%

0 16

WCS is on track to deliver positive EP for 2004

Strong increase in revenues across nearly all BUs, reflecting benefits of client-led strategy. Benefits of client approach are also underlined by client satisfaction surveys, which show continued improvement.

Expenses up due to higher bonuses following improved results in third and fourth quarter, investments in BU FM and restructuring costs in BUs WoCa and Equities.

Operating result up by 6.4%. Adjusted for FX, operating result was up by 10%

Commitment of positive EP was achieved for second consecutive quarter.

% change

(EUR mln) Q4 03 Q3 03Q4 03/Q3 03

fy 03/fy 02

Revenues 1,491 1,360 9.6 (0.1)

Expenses 1,210 1,096 10.4 (3.5)

Operating result 281 264 6.4 21.0

Net profit 163 134

Efficiency ratio 81.2% 80.6%

Revenues Q4 2003Other7%

Interest31%

Commisions25%

Trading37%

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BU Private Clients delivers strong revenue growth

Substantial increase of revenues largely attributable to increased volumes on the

back of improved customer sentiment and the implementation of focused sales

initiatives

Expenses flat, reflecting the success of cost measures taken during the year

Net profit up by 73%, partly due to tax reliefs in several jurisdictions

Revenues Q4 2003

Interest37.8%

Commissions 49.4%

Trading2.7%

Other 10.1%

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Higher performance fees in Asset Management support Q4 results

Revenues up on the back of higher performance fees and improved market conditions

Expenses increase, partly driven by alignment of performance based compensation

with improved result in fourth quarter and incidentals

Adjusted for currency movements, AuM up by 2.6% to EUR 160 bn compared to the

level of AuM at the end of the third quarter

% change

(EUR mln) Q4 03 Q3 03Q4 03/Q3 03

fy 03/fy 02

Revenues 142 125 13.6 (6.2)

Expenses 112 96 16.7 (5.9)

Operating result 30 29 3.4 (7.4)

Net profit 21 19 10.5 (5.6)

Efficiency ratio 78.9% 76.8%

Revenues Q4 2003

Other 1.3%

Trading1.3%

Commissions 96.6%

Interest0.8%

Asset Quality and Capital

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Overall quality of the portfolio remains solid

Overall provisioning slightly up in Q4

WCS provisioning increases due to exposure to Parmalat. The quality of the portfolio has further improved in the fourth quarter

In C&CC, provisioning is stable. Provisioning in BU NA is down and stable in BU NL and BU Brazil. Provisioning in RoW is slightly up.

Overall quality of the portfolio remains solid.

Annualised provisions / RWA (%)

0.0%

0.5%

1.0%

1.5%

2.0%

2Q01 3Q01 4Q01 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03

C&CC WCS ABN AMRO

Loan Loss Provisions per SBUs (EUR mln)

SBU Yr 02 1Q03 2Q03 3Q03 4Q03 Yr 03

C&CC 881 181 217 205 214 817

WCS 742 156 83 54 106 399

PCAM 13 3 2 3 1 9

Total 1,695 343 305 303 323 1,274

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BU NL provisioning remains high due to SME portfolio

BU NL commercial portfolio by clientBU NL total portfolio

Provisions in 2004 expected to be

similar as in 2003, with a peak in

the first half

C&CC SME portfolio

Commercial32%

Consumer68%

Corporate Clients

53%SME47%

46.7% 48.9% 47.3% 47.6% 47.7%

47.1%50.6% 52.1% 52.1% 51.5%

6.2%0.5% 0.6% 0.3% 0.8%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Dec. 02 Mar. 03 Jun. 03 Sep. 03 Dec. 03

UCR 1,2,3 UCR >=4 Not Rated

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Our Tier 1 target of at least 8% has been reached ahead of schedule

Tier 1 ratio improvement to 8.15% due to high level of retained earnings

Our core Tier 1 reached a level of 5.91%, close to 2004 target of at least 6.0% The gearing ratio decreased for the seventh consecutive quarter to 27.5%

Tier 1 and core Tier 1 are expected to be at least 8.25% and 6.0% by end 2004

0 23

Expected net USD profit for 2004 and 2005 is fully hedged

Our expected net USD profit for 2004 and 2005 has been fully hedged

In view of improvement of our capital ratios and structural weakness of USD, we have decided to end our full Tier 1 hedging strategy

Strategic Update and Outlook

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Multi-regional strategy A multi-regional strategy with a focus on commercial and

retail banking, supported by an international wholesale franchise. We aim to improve our shareholder returns by:

1. Creating value for our clients by offering high-quality financial solutions that best meet their needs and long-term goals

2. Focusing on consumer and commercial clients in chosen home markets, selected wholesale clients with an emphasis on Europe, as well as financial institutions and private clients

3. Leveraging our advantaged product and people capabilities to the benefit of all our client bases

4. Sharing expertise and operational excellence across the Group

5. Creating ‘fuel for growth’ by optimally allocating capital and talent

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This strategy has led to improved performance and value creation

Peer Group TRS Tracker 2001 -2004 Peer Group TRS Tracker 2002 -2005

ABN AMRO: #13 ABN AMRO: #7

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Three months average price ABN AMRO:1 January 2001 : EUR 25.6929 January : EUR 18.57

Three months average price ABN AMRO:1 January 2002 : EUR 17.8153229 January 2002 : EUR 18.57

Peer Group Top 5 Peer Group Median ABN AMRO Peer Group Top 5 Peer Group Median ABN AMRO

29 January 2004 29 January 2004

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Focus on group synergies is a key priority for 2004

Increasing focus on realisation of revenue and cost

synergies driven by:

New MB governance structure increases Group focus

Creating of Group Business Team to build a broader leadership and

further encourage cross-SBU initiatives

Creating Group Shared Services to realise operating efficiency and

further cost savingsGSS will look at opportunities for additional synergies in the following areas: – Procurement– Transaction Processing– IT InfrastructureMore details will be given in Q2 2004

0 28

C&CC will continue to deliver underlying growth in 2004

In Brazil, the decrease of interest rates will spur significant loan growth.

In the Netherlands, increasing client satisfaction will generate revenue growth (excl. extraordinary result of EUR 231 mln in 2003) in spite of economic weakness

C&CC RoW will benefit from organic growth in NGM

In the US, growth of commercial banking will partly offset the fall out of the mortgage refinancing boom

0 29

Net profit outlook for BU NA remains valid

The outlook for 2004 – net profit lower by EUR 150 mln to EUR 250 mln compared to 2003 – remains valid,...

Assumptions:- Expected market origination volume 2004 to be USD 1.4 trillion

- Therefore no refinancing

- Stable market share for BU NA (approx. 4.0 to 4.5%)

- Margins below 30 basis points

- Commercial loan growth

… despite new mortgage initiatives to further develop our profitable mortgage franchise

0 30

WCS will show substantial growth

WCS revenues are expected to increase on the back of further improvements across all client and product BUs– We expect a continuing increase in market share with our P&K clients

– Higher revenues from the BU FM are based on specific new initiatives in Credit, Rates and FX activities as well as continuing benefits from repricing in PMG

– Higher revenues from the BU WoCa expected from enhanced offer, geographic and client focus and cost efficient delivery

– The BU Equities and BU Corporate Finance are well positioned to benefit from better market conditions. The BU Equities will also benefit from investments in derivatives

– Private Equity will benefit from increased exit opportunities

Structural approach to cost savings provides cushion to invest further in core clients and product franchises

Provisioning is expected to trend lower

0 31

BU Private Clients continues to build up its on-shore network

ABN AMRO Private Clients ranks among the world’s top 10, with EUR 102 bn assets under Administration (AuA)

In the Netherlands, we are the clear market leader

In France, we are the leading foreign private bank, well positioned after restructuring completed in 2003

In Germany, we are building a leading position via the integration of former AAPC Germany, Delbrück (acquired in 2003) and BethmannMaffei (acquired in 2004), operating as Delbrück BethmannMaffei

0 32

During and beyond 2004, we expect significant organic growth in Asia

India - Total clients Greater China - Total Clients

88.0%

Greater China includes Taiwan and Hong Kong

0

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200,000

300,000

400,000

500,000

600,000

700,000

2002 2003

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

2002 2003

35.0%

338,000

635,000

500,000

675,000

0 33

2004 Outlook

“We expect 2004 to be better than 2003 with a continuing improvement in our operating performance and net profit (albeit at a slower pace).”

“Based on our 2003 results and our confidence in 2004, we will propose to shareholders to increase the final dividend from 45 to 50 euro cents, leading to a total dividend of 95 euro cents for the year.”

0 34

In conclusion, we are well geared for future growth

Demographics in Asia and Europe

Long-term focus

Group synergies

Customer focus

Leveraging our international network

Long-term shareholder value