COMMISSION DECISION
of 5 April 2011
on the measures C 11/09 (ex NN 53b/08, NN 2/10 and N 19/10) implemented by the Dutch State for ABN AMRO Group NV (created following the merger between Fortis Bank Nederland and ABN AMRO N)
(notified under document C(2011) 2114)
(Only the English text is authentic)
(Text with EEA relevance)
(2011/823/EU)
1.
PROCEDURE
2.
DETAILED DESCRIPTION OF THE BENEFICIARIES AND THE MEASURES
2.1.
The creation of ABN AMRO Group
Separation of ABN AMRO N
Creation of ABN AMRO Group
2.2.
Beneficiaries
2.2.1.
Economic activities of ABN AMRO N and ABN AMRO Z
Key financial data ABN AMRO N (in million EUR) |
2008 |
2009 |
Total operating income(19) |
5 189 |
4 899 |
Net profit |
471 |
(117) |
Return on equity |
6,7 % |
–2,7 % |
Cost-income ratio |
73 % |
77,5 % |
Total assets |
183 539 |
202 084 |
Total equity |
7 044 |
4 278(20) |
RWA(21) |
91 700 |
74 973(22) |
Tier 1 ratio |
9,4 % |
10,2 %(23) |
Total capital ratio or BIS-ratio |
12,6 % |
14,8 % |
Stable funding/non liquid assets |
107 % |
110 % |
Source: ABN AMRO Bank NV, Annual Review 2009, ex ABN AMRO Z and private equity consolidation, but including New HBU. |
2.2.2.
Fortis Bank Nederland (FBN)
Key financial data FBN (in million EUR) |
2006 |
2007 |
2008(31) |
2009 |
Total operating income |
3 473 |
3 553 |
3 096 |
2 171 |
Net profit |
1 157 |
1 296 |
–18 486 |
406 |
Return on equity (norm.)(32) |
20,1 % |
8,9 % |
4,9 % |
0,7 % |
Cost-income ratio |
50,5 % |
54,2 % |
64,9 % |
84,2 % |
Total assets |
209 749 |
272 378 |
184 203 |
189 785 |
Total equity |
5 910 |
21 763 |
2 944 |
4 716 |
RWA |
66 995 |
75 850 |
70 932 |
53 730(33) |
Tier 1 ratio |
8,6 % |
11,2 % |
7,4 % |
12,5 % |
Total capital ratio |
10,5 % |
11,2 % |
11,2 % |
16,7 % |
Loan-to-deposit ratio |
|
167 % |
237 % |
208 % |
Source: FBN annual reports 2008/2009. |
2.2.3.
ABN AMRO Group
2.3.
Description of the Restructuring Plan of December 2009 and the updated Restructuring Plan of November 2010
|
2009 (Actual) |
2010 (E(46)) |
2011 (E) |
2012 (E) |
2012 run rate (E) |
2013 (E) |
Operating income |
7 039 |
[…] |
[…] |
[…] |
[…] |
[…] |
Net interest income |
4 528 |
[…] |
[…] |
[…] |
[…] |
[…] |
Net fee & comm. income |
1 933 |
[…] |
[…] |
[…] |
[…] |
[…] |
Other income |
849 |
[…] |
[…] |
[…] |
[…] |
[…] |
Operating expenses |
–5 568 |
[…] |
[…] |
[…] |
[…] |
[…] |
Op. exp. – business as usual |
–5 258 |
[…] |
[…] |
[…] |
[…] |
[…] |
Op exp. – transition |
– 310 |
[…] |
[…] |
[…] |
|
|
Operating result |
1 471 |
[…] |
[…] |
[…] |
[…] |
[…] |
Loan impairments |
–1 585 |
[…] |
[…] |
[…] |
[…] |
[…] |
Profit before taxes |
– 114 |
[…] |
[…] |
[…] |
[…] |
[…] |
Taxes and minorities |
45 |
[…] |
[…] |
[…] |
[…] |
[…] |
Net profit |
–68 |
[…] |
[…] |
[…] |
[…] |
[…] |
Underlying net profit (ex transition costs) |
163 |
[…] |
[…] |
[…] |
[…] |
[…] |
2.4.
Description of the measures
2.4.1.
Measures covered by the Decision of 8 April 2009
2.4.2.
Measures covered by the Decision of 5 February 2010
State support measures |
Description |
Size (in EUR billion) |
Reason |
Legal entity to which the measure is granted |
Measures covered by the Decision of 8 April 2009 |
||||
Y1 |
ST funding |
45 |
|
FBN |
Y2 |
LT funding |
16,1 |
|
FBN (to allow repayment to Fortis Bank SA/NV) |
Z |
Acquisition of ABN AMRO N |
6,5 |
|
FBN (purchase price paid by waiving debt) |
Capital measures notified in July 2009 and implemented in July/August 2009 |
||||
Measure A |
Capital relief instrument |
CDS-protection on a EUR 34,5 billion portfolio (having a capital relief effect of EUR 1,7 billion) |
Filling the capital shortage of ABN AMRO Z |
ABN AMRO Bank (now RBS NV) and moved to ABN AMRO II (now ABN AMRO Bank) on separation date |
Measure B1 |
MCS |
0,5 |
||
Measure B2 |
MCS |
0,3 |
First tranche of separation costs |
ABN AMRO Bank NV (now RBS NV) and moved to ABN AMRO II (now ABN AMRO Bank on separation) |
Additional capital measures notified in January 2010 |
||||
Measure B3 |
MCS |
0,78 |
Second tranche of separation costs and prudential margin of EUR 0,5 billion |
EUR 967 million paid to ABN AMRO Bank (now RBS NV) and then moved to ABN AMRO II (now ABN AMRO Bank) on separation, the remainder directly paid to ABN AMRO II |
Measure B4 |
MCS |
0,3 |
Capital impact from sale of new HBU |
|
Measure B5 |
MCS |
1,2 |
Integration costs |
|
Measure C |
Exchange Tier 2 into common equity |
1,35 |
Tier 1 shortage at the level of FBN |
FBN |
Measure D |
Cash payment to consortium partners |
0,74 |
Payment obligations resulting from the CSA |
Other consortium partners/ABN AMRO Bank (now RBS NV) |
Measure E |
Guarantee on liabilities of EUR 950 million |
0,95 |
Cross liabilities resulting from sale of new HBU |
ABN AMRO II (now ABN AMRO Bank) |
3.
GROUNDS TO OPEN
3.1.
Grounds to open in the Decision of 8 April 2009
3.2.
Grounds to extend the proceedings in the Decision of 5 February 2010
4.
COMMENTS FROM INTERESTED PARTIES
4.1.
First set of comments from Van Lanschot (letter of 6 May 2009)
4.2.
Follow-up comments of Van Lanschot (letters of 21 and 28 August 2009)
4.3.
Comments from ABN AMRO Bank (letter of 6 July 2009)
5.
COMMENTS FROM THE DUTCH STATE
5.1.
Comments from the Dutch State on the Decision of 8 April 2009
5.2.
Comments from the Dutch State on the Decision of 5 February 2010
5.3.
Comments from the Dutch State on the comments of interested parties
5.3.1.
Comments from the Dutch State on the complainant’s letter of 6 May 2009
5.3.2.
Comments from the Dutch State on the complainant’s arguments of 21 and 28 August 2009
5.3.3.
Comments from the Dutch State on the comments of ABN AMRO Bank
6.
ASSESSMENT
6.1.
Existence of aid
6.1.1.
Measures Y1 and Y2 of 3 October 2008
6.1.2.
Applicability of the MEIP for the measures implemented after the initial aid of 3 October 2008
6.1.3.
Existence of an advantage and conclusion on the existence of aid for the measures implemented after integrated transactions of 3 October 2008
6.1.4.
Quantification of the State aid
Recapitalisation aid |
|||||
(all figures in EUR billion) |
State aid min |
State aid max |
RWA of the combined entity FBN-ABN AMRO N |
min % of RWA |
max % of RWA |
Measure Z: Dutch State acquires AA from FBN |
[0 - 2,75] |
[0,95 - 3,65] |
162,6(114) |
[0-1,7] % |
[0,6 - 2,25] % |
Measure B3: Separation costs (prudential margin) |
0,5 |
0,5 |
149,5(115) |
0,33 % |
0,33 % |
Measure B4: Capital shortage related to HBU sale |
0,3 |
0,3 |
149,5 |
0,20 % |
0,20 % |
Measure B5: Integration costs |
1,2 |
1,2 |
149,5 |
0,80 % |
0,80 % |
Measure C: Tier 2 ==> Tier 1 conversion |
[0,945 - 1,215] |
[0,945 - 1,215] |
149,5 |
[0,63 - 0,82] % |
[0,63 - 0,82 % |
Total recapitalisation aid |
4,2 |
5,45 |
|
2,75 % |
3,5 % |
Funding/Liquidity aid |
|||||
Measure Y1: Short-term liquidity facility |
45 |
|
|
|
|
Measure Y2: Long-term loans |
7,9 |
|
|
|
|
Issue of new debt instrument guaranteed under the Dutch guarantee scheme |
18,8 |
|
|
|
|
Total funding/liquidity aid |
71,7 (or 52,9 when corrected for double counting)(116) |
|
|
|
|