place in banking make it essential for each
branch also to devote a great deal of attention to
ongoing training.
We expect the economic recovery in the
Netherlands to continue in 1986. In 1985, the
improvement was accompanied by a growth in
the demand for loans which exceeded our
expectations. Although the liquidity of industry
generally continued to improve, there were in
addition to those businesses with ample cash
resources an increasing number which turned to
their banks for funds. We hope that this
development will continue in 1986. One thing is
certain, however, and that is that the intense
competition on the interest front will continue
to depress the margins in 1986. At this point in
time, it is difficult to say whether the stock
market will be as buoyant in 1986 as it was in
1985. Profits from our operations abroad will be
affected to some extent by the developments in
exchange rates, particularly the rate for the
US dollar.
As the dollar still stood at Fl. 3.44 end-June
1985, it seems probable that the gross result for
the first six months of 1986 will turn out slightly
below the result for the same period in 1985. At
this moment it is impossible to say whether the
results for the latter half of the year are likely to
make up for this. The ultimate amount of the
net result will also depend on the amount which
has to be added to the Provision for General
Contingencies. The size of this appropriation is
determined by, among other things, the specific
provisions that are deemed necessary. It is still
too early in the year to give an indication of the
likely provisions.
Managing Board
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