ABM Amro Profit Surges

AMSTERDAM—ABN Amro Group NV on Friday recorded a sharp increase in second-quarter net profit, thanks to a sharp decline in provisions for bad loans as the state-owned lender continues to work toward its initial public offering.

Net profit surged to €600 million ($674 million), an improvement from €39 million in the same period a year earlier. Loan-loss provisions fell 90% to €34 million, which the bank called exceptionally low but not representative for the remainder of this year.

Chief Executive Gerrit Zalm said the period was the most profitable quarter since ABN Amro was created in 2010 from the remnants of Fortis SA/NV, the Belgian-Dutch lender that collapsed during the global financial crisis.

ABN Amro's IPO is expected to take place before the end of the year. The Dutch state is planning to sell a stake of 20% to 30% in the lender, and the deal could be one of the biggest-ever listings in Amsterdam. ABN Amro has a book value of nearly €16 billion.

Write to Maarten van Tartwijk at maarten.vantartwijk@wsj.com

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(END) Dow Jones Newswires

August 21, 2015 05:25 ET (09:25 GMT)

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