Strong operating performance driven by strict cost control Second quarter results 2002 8 August 2002.

Strong operating performance driven by strict cost controlSecond quarter results 2002

8 August 2002

0 2

Strong operating performance driven by strict cost control

First half 2002 performance:

Revenues flat (+0.4%)

Operating expenses are trending down (-2.1%)

Operating result up (6.9%)

Provisioning was driven up by an unprecedented level of corporate defaults due to perceived fraudulent practices

Efficiency ratio improved by 1.8% to 71.0%

Tier 1 ratio up to 7.15%, a 0.6% increase compared to the first half 2001

0 3

Restructuring decisions have begun to pay off in first half of 2002

Overall revenues down in the first half of 2002, with more stable

flow revenues mitigating the downturn in volatile businesses

Cost base reflects the positive impact of the restructuring

decisions, particularly TOPS and US domestic closures

Expenses have come down sharply and we expect it to fall by an

additional 5% in the second half of 2002

Aggressive capital management has remained a key theme.

Target of RWA reduction of EUR 20 bn will be achieved by year

end. A further EUR 10 bn reduction is targeted by 2004

0 4

WCS will continue to sharpen its strategic focus

Client-led, integrated wholesale bank with a European focus

Focus on profitable Financial Institutions and Large Cap Clients

Grow our strong Global Financial Markets and Loan Product businesses

through integrated delivery of value-added Debt and Treasury products

Position our strong Global Transaction Services franchise for growth

through delivery of an integrated suite of Working Capital products

Reposition our Corporate Finance and Equities businesses to deliver

positive operating results by focusing on our positions of strength

0 5

Focus Equities and Corporate Finance on positions of strength

Cost base of Corporate Finance and Equities has been reduced by

over 30% since Q2 2001

Further reductions coming in the second half of 2002 from both our

US restructuring and actions announced today

A 400 to 500 headcount reduction will be implemented without

additional restructuring charge

Equities and Corporate Finance will focus on existing positions of

strength

Committed to profitability in 2003 without relying on market recovery

Operating performance

0 7

Interest53%

Commissions 26%

Trading8%

Other 13%

Operating performance of the second quarter was good

Revenues held up remarkably well despite the weak economy

Expenses have continued to come down, driven by WCS and BU US

Efficiency ratio has further improved

Revenues Q2 2002

0 8

Good performance in C&CC was driven by all franchises

Revenues stable

Expenses higher due to incidentals in BU NL

Strong performance despite adverse currency movements

Operating result Q2 2002

Brazil15%

Netherlands13%

US63%

RoW9%

0 9

Interest73%

Commissions 21%

Trading1%

Other 5%

BU NL restructuring is on track

Revenues increased due to higher net interest revenue

Expenses up due to incidentals but staff costs trending down

Conversion of the branch network is on track. Target of EUR 400 mln

annual cost savings as of 2004 is maintained

Revenues Q2 2002

0 10

Interest56%

Commissions 16%

Trading3%

Other 25%

BU US posted another quarter of growth and improved efficiency

Revenues went up by 7.1% in local currency: mortgage origination stabilised, value of mortgage servicing rights increased

Expenses came down due to strict cost control and lower mortgage related expenses

Revenues Q2 2002

0 11

Interest74%

Commissions 16%

Other 10%

Strong performance in BU Brazil despite market volatility

Revenues were up 1.4% in local currency

In local currency, expenses were up 10.1% driven by higher staff costs and automation costs related to the opening of new branches

Effective tax rate is an integral part of the BU operating efficiency.

Net profit increased by 68.2% to EUR 143 mln

Revenues Q2 2002

0 12

PC and AM were affected by difficult market conditions

PC commissions and asset values were down, particularly in France and International Private Banking. Operating performance was affected by higher expenses, in part due to further investments in the Dutch franchise

Resilient AM revenues despite the significant reduction in the value of AuM and associated revenues, in line with market conditions. Costs were contained enabling AM to deliver a satisfactory operating performance

Revenues Q2 2002

Interest27%

Other 4%

Commissions 68%

Trading1%

0 13

WCS improved its operating performance despite weak markets

Modest decline in revenues due in part to stable flow business

Expenses sharply down, driven by TOPS, strict cost control and the closure of US Equity & Corporate Finance domestic business

Operating result and efficiency ratio improved significantly

Interest39%

Trading22%

Other 4%

Commissions 35%

Revenues Q2 2002

Asset Quality and Capital

0 15

Unprecedented level of corporate failures drove provisioning up

Provisioning rose sharply due to

an unprecedented level of

corporate failures triggered by

perceived fraudulent practices

Decrease expected in HY02,

barring any force majeure

Slightly higher level for the year

assumed due to Q2 levels

Quality of the portfolio remains

satisfactory

0.0%

0.5%

1.0%

1.5%

2.0%

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

C&CC WCS Group

Annualised provisions / RWA

Provisioning (EUR mln)

SBU 1Q01 2Q01 1Q02 2Q02 YTD 02

C&CC 176 220 255 231 486

WCS 92 40 111 345 456

PCAM 3 -1 1 0 1Total Group 267 253 390 582 972

(%)

0 16

Tier 1 has improved despite Brazil

Adverse currency movements have impacted Tier 1 solvency

The impact of Brazil was 19 basis points in the second quarter

The capital release from RWA reduction in WCS has improved Tier 1 ratio

(EUR bn) 30 06 02 31 12 0130 06 02/ 31 12 01

% change

30 06 02/30 06 01

Total assetsShareholders’ equityGroup capitalRisk-weighted assets

Tier 1 ratioTotal capital ratio

607.511.0231.3

250.5

7.15%10.80%

597.411.7934.0

273.4

7.03%10.91%

1.7(6.5)(7.9)(8.4)

(1.2)(4.5)(9.8)

(12.4)

Outlook

0 18

Outlook unchanged

Given the level of corporate failures in the second quarter, we have assumed a slightly higher level of provisioning for the year

We expect net profit, excluding extraordinary items, to be in line with 2001

Interim dividend stable at EUR 0.45 per ordinary share

AppendicesSecond quarter 2002 results

0 20

Pensions Accounting policy migrated to US GAAP on 1 January 2002. US

GAAP allows the spreading of potential increases of the annual

pension costs

Accrued benefit cost is fully accounted for in the liabilities under

provisions

Annual pension costs would have to increase as and when

unrecognised net actuarial gains / (losses) are greater than 10% of

the Projected Benefit Obligation

Any increase would be spread over the average remaining service

term - 11 years at present

Update on WCS

0 22

We will build on our strength in Treasury and Debt products and ...

Enhance our ability to meet key clients’ needs by providing an integrated

offer to include capital raising, capital management and risk advisory

Achieve this objective by combining our structuring and origination

capabilities in Loan Products with our distribution capabilities in Global

Financial Markets

Build upon and profitably grow our strong positions in primary marketsEurobonds (No. 7)Euro denominated DCM(No. 3)European Asset Backed Securitisation (No. 2)Global Loan syndication (top 10 rankings in Healthcare, Utilities, Telecom, Oil & Gas)EMEA Project Finance (No. 9)

Source: Euromoney, IFR, Project Finance magazine, Loanware

0 23

… our strength in Working Capital products

Expand the scope of GTS to deliver an integrated and tailored

approach to the working capital needs of our clients

Provide corporate treasurers with range of working capital

products designed to reduce working capital cycle and enhance

overall returns

Leverage our advantage product range and network reach to grow

our market-leading positionsGlobal Cash & Payments (No. 4)Global Foreign Exchange position (No. 8)Global Custody (No. 6 in w/ Mellon)

Source: Euromoney, IFR, Project Finance magazine, Loanware

Currency variations and hedging

0 25

Impact of currency variations on Group performance

Revenues

Expenses

Operating result

Pre-tax profit

(241)

(136)

(105)

(75)

Reported change (%)

Currency impact

(Eur mln)

Organic growth (%)

4.7

2.1

11.2

(12.8)

(0.4)

(1.9)

3.4

(20.6)

Q2 02 / Q1 02

0 26

Impact of currency variations on BU US performance

Revenues

Expenses

Operating result

Pre-tax profit

(100)

(49)

(51)

(40)

Reported change (%)

Currency impact

(Eur mln)

Organic growth (%)

7.1

(1.1)

16.4

16.4

(1.4)

(8.9)

7.2

(7.2)

Q2 02 / Q1 02

0 27

Impact of currency variations on BU Brazil performance

Revenues

Expenses

Operating result

Pre-tax profit

(88)

(62)

(26)

(15)

Reported change (%)

Currency impact

(Eur mln)

Organic growth (%)

3.7

10.7

(10.1)

(22.2)

(12.7)

(6.8)

(24.3)

(34.4)

Q2 02 / Q1 02

0 28

Overview of the currency hedging Overview of the currency hedging policypolicy

USD BRL Other CCY

Capitalhedge

Ratio hedge Not possible Selectivelyapplied

Ratio hedge Applied Not possible(exc. USD)

See capitalhedge

Profit hedge Fully hedgedin 2002 & 2003

Mitigated andPartial

hedging

Selectivelyapplied

Brazil: cross border and sovereign risk

0 30

Brazilian cross border risk is largely mitigated

Brazil, Mexico and Chile are the largest contributors

Extensive use of risk mitigants is sought and achieved when dealing with Brazilian counterparts

Mitigated exposure includes trade deals, transactions covered by credit default swaps and

political risk insurance

Cross borderexposure

Exc. Mitigatedexposure

(EUR bn) Ytd 02 FY 01 Ytd 02 FY 01

Latin America 7.7 8.4 3.7 4.0

Brazil 3.8 4.1 1.1 1.2

0 31

Overview of the portfolio of government securities of BU Brazil

Portfolio is locally funded and invested in Brazilian real denominated notes

Portfolio breakdown

NB: currency linked notes are notes denominated in Brazilian real

Trading11%

Investment23%

Commercial66%

Asset quality and provisioning

0 33

Optimal Tier 1 & 2 ratios are a function of several factors

Optimal capital structure is a function of cash-flows and asset quality

Sustainability of the income stream

Asset quality and levels of provisioning

Effective tax rate

Pay out ratio (policy is 45 to 50%)

Proportion of cash dividend (approx. 40%)

0 34

ABN AMRO has high coverage ratios

Operations are cash generative

Cash-flow is sustainable

Historically, pay out ratio and cash proportion of dividend have led to a retention of at least 70%

Coverage ratios are high at half year 2002

Operating income / Provisioning : 2.8x

Net attrib. Profit / Cash dividend: 3.2x

PBT / [taxes, extraordinaries, cash dividend]:1.8x

0 35

C&CC70%

Wholesale23%

Other5%

PCAM2%

The composition of the consolidated portfolio is stable

June 2001 December 2001 June 2002

Private loans (EUR bn - by outstanding)

0

50

100

150

200

Dec-00 Mar-01 Jun-01 Sep-01 Dec-01 Mar-02 Jun-02

Wholesale C&CC Private Other

Brazil3%

Other4%

NL62% US

31%

Wholesale23%

C&CC69%

PCAM3%

Other5%

C&CC68%

Wholesale25%

PCAM2%

Other5%

0 36

Provisioning – EUR million Annualised provisioning / RWA

SBU 1Q01 2Q01 1Q02 2Q02 YTD 02 1Q01 2Q01 1Q02 2Q02 YTD 02

C&CC 176 220 255 231 486 0.43% 0.53% 0.64% 0.62% 0.66%

WCS 92 40 111 345 456 0.38% 0.16% 0.49% 1.65% 1.09%

PCAM 3 -1 1 0 1 0.20% -0.07% 0.06% 0.03% 0.03%Total Group 267 253 390 582 972 0.38% 0.35% 0.58% 0.93% 0.78%

Overview of total loan loss provisioning per SBU

WCS59%

C&CC40%

Other1%

0.0%

0.5%

1.0%

1.5%

2.0%

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

C&CC WCS Group

Annualised provisioning / RWA Loan loss provisioning per SBU

2Q02 loan loss provisioning

0 37

Asia Pacific Advanced

7.1%

North America27.0%

Latin America4.0%

Eastern Europe0.3%

Africa0.6%

Europe 52.9%

Middle East1.0%

Asia7.2%

Wholesale client base is predominantly OECD - (by limits, June 2002)

Geographic exposure calculated based on the country lending office of each counterparty

0 38

Breakdown of Wholesale portfolio per client sector - (by limits, June 2002)

FIPS (NBFI)17%

Energy, Chemical, Health12%

FIPS (Public Sector)

7%

FIPS (Commercial Banks)35%

Automotive, Consumer, Diversified

21%

Telecom, Media, Technology

8%

Energy, Chemical, Health27%

Automotive, Consumer, Diversified

53%

Telecom, Media, Technology

20%

Wholesale - Corporate portfolioWholesale - Total portfolio

0 39

Wholesale corporate portfolio is well diversified - (by limits, June 2002)

Tobacco0.9%

Leisure0.9%

(Non) durables4.5%

Food6.4%

Services4.1%

Manufacturing (general)8.6%

Real estate2.0%

Agri/raw materials1.5%

Construction3.9%

Transport services7.3%

Manuf other transport means1.5%

Automotive (oem + supply)6.7%

Metals & mining3.1%

Chemicals5.4%

Utilities10.3%

Oil & gas8.2%

Health/pharma3.2%

Retail2.2%

Technology6.3%

Media3.7%

Telecom9.4%

As a % of total limits of Wholesale Corporate portfolio which excludes FIPS

0 40

Wholesale corporate exposure is gradually coming down across sectors

Sector breakdown of wholesale portfolio - Total limits, June 2002

TMT ECH ACD

Jun-01 Dec-01 Mar-02 Jun-02

0 41

Breakdown of WCS risk-weighted assets

RWA per product - Ytd 01

Loan Product63%

Other4%

Equities and Corporate Finance

5%

Global Financial Markets

21%

Global Transaction Services

5%

Private Equity2%

RWA per product - Ytd 02

Loan Product59%

Other3%

Private Equity3%

Equities and Corporate Finance

4%

Global Financial Markets

25%

Global Transaction Services

6%

0 42

Average UCR of wholesale client sectors since June 2001 - (by limits)

2.4

2.5

2.6

2.7

2.8

2.9

3.0

3.1

Jun-01 Sep-01 Dec-01 Mar-02 June-02

TMT ECH ACD WCS portfolio

Average UCR - historical performance Average UCR

0 43

Average UCR of wholesale client sectors - (by limits, June 2002)

UCR >= 419%

UCR 1, 2, 381%

0%

20%

40%

60%

80%

100%

Jun-01 Sep-01 Dec-01 Mar-02 Jun-02

UCR 1, 2, 3 UCR >= 4UCR 1, 2, 3

82%

UCR >= 418%

ACD ECH

TMT

Wholesale corporate portfolio

(53.4% of WCS corp. portfolio) (27.1% of WCS corp. portfolio)

(19.5% of WCS corp. portfolio)

UCR >= 421%

UCR 1, 2, 379%

UCR >= 416%

UCR 1, 2, 384%

0 44

2Q02 Netherlands North America Brazil Rest of World

Commercial 74.2 31.6 36.3 1.4 4.9

Consumer 98.2 75.3 17.5 2.9 2.5

Total private loans 172.4 106.9 53.8 4.4 7.3

Overview of the C&CC consumer and commercial franchise

Commercial43% Consumer

57%

North America

31%

Brazil3%

Rest of World4%

Netherlands62%

C&CC total private loans (Eur bn)

0 45

Overview of the commercial portfolio of BU NL - (by outstanding, June 2002)

C&CC NL total portfolio

C&CC NL commercial portfolio by product C&CC NL commercial portfolio by UCR

Commercial30%

Consumer70%

Corporate clients43%

SME57%

UCR >=442.6%

Not rated0.5%

UCR 1, 2 and 356.9%

0 46

Standard Federal

39%

LaSalle61%

Overview of the portfolio of BU US - (by outstanding, June 2002)

Asset quality

Overview by legal entity Business mix

Resid. Mortgage

39%

Individual2%

Other5%

Commercial54%

0.0%

20.0%

40.0%

60.0%

80.0%

Dec-00 Jun-01 Sep-01 Dec-01 Mar-02 Jun-02

UC

R p

erce

nta

ge

UCR 1, 2 and 3 UCR >=4

0 47

Business mix

C&CC portfolio performance - Total outstanding

UCR breakdown

Overview of the portfolio of BU Brazil (June 2002)

Car Financing

44%

Retail38%

Middle Corp18%

UCR 1, 2 and 364%

UCR >=430%

Not rated6%

0.0%10.0%20.0%30.0%40.0%50.0%60.0%

Dec-00 Jun-01 Sep-01 Dec-01 Mar-02 Jun-02

UC

R %

UCR 1/2/3 UCR>=4 Not rated

0 48

By ProductBy Geography

Overview of C&CC consumer credit (by outstanding, June 2002*)

USA15.0%

Netherlands75.0%

Asia4.0%

Brazil6.0%

Rest of Europe, Middle East, Africa

0.0%

Rest of Latin America

0.0%

Mortage loans NL70%

Credit cards1%

Personal loans12%

Auto loans4%

Mortage loans USA9%

Overdraft1%

Other0%

Mortage loans other2%

Loans against shares

1%

0 49

Cautionary Statement regarding Forward-Looking Statements

This announcement contains forward-looking statements. Forward-looking statements arestatements that are not historical facts, including statements about our beliefs and expectations.Any statement in this announcement that expresses or implies our intentions, beliefs,expectations or predictions (and the assumptions underlying them) is a forward-lookingstatement. These statements are based on plans, estimates and projections, as they are currentlyavailable to the management of ABN AMRO. Forward-looking statements therefore speak only asof the date they are made, and we take no obligation to update publicly any of them in light ofnew information or future events.

Forward-looking statements involve inherent risks and uncertainties. A number of importantfactors could therefore cause actual future results to differ materially from those expressed orimplied in any forward-looking statement. Such factors include, without limitation, the conditions inthe financial markets in Europe, the United States, Brazil and elsewhere from which we derive asubstantial portion of our trading revenues; potential defaults of borrowers or tradingcounterparties; the implementation of our restructuring including the envisaged reduction inheadcount; the reliability of our risk management policies, procedures and methods; and otherrisks referenced in our filings with the U.S. Securities and Exchange Commission. For moreinformation on these and other factors, please refer to our Annual Report on Form 20-F filed withthe U.S. Securities and Exchange Commission and to any subsequent reports furnished or filedby us with the U.S. Securities and Exchange Commission.

The forward-looking statements contained in this announcement are made as of the date hereof,and the companies assume no obligation to update any of the forward-looking statementscontained in this announcement.