The Wall Street Journal reports that ABN Amro has confirmed a 'recovery' in its wholesale banking operations, which includes corporate and investment banking.
Bank spokesman Steven Blaney is quoted as having said that the wholesale unit's net profit for the final quarter will come in higher than the £94m seen in Q3. The recovery is put down to an improvement in the financial markets and increased revenues from the bank's working capital business. Overall, the unit is expected to bring in a decent return this year, although staff are thought unlikely to generally see a significant improvement in their bonuses on last year.
In a related story, Australian mining group Equatorial Mining is somewhat miffed with the bank, after a research note from an ABN analyst made some disparaging remarks about a court case Equatorial won earlier this year in the US against Kvaerner. The mining company was awarded $163m, but, according to The Sunday Times, the ABN analyst apparently described the court action as 'questionable' and declared that Equatorial was 'a dubious plaintiff....in a desperate financial state'. Equatorial is demanding an apology and retraction.
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