The contribution of domestic activities to the
gross result, as shown by Table 5, was Fl. 859
million or 64.5% (1984: Fl. 771 million or
61.2%). Income was up by 7.8% (1984: - 1.6%)
and Expenditure up 6.2% (1984: 1.5%). The
increase of 11.4% (1984: - 8.2%) in the gross
result was the net effect of the following
developments:
- a minor increase in the item Interest 2.4%)
due to a gratifying development in the volume of
the basic interest-earning activities, which was
offset, however, by a continued decline in
interest margins; interest income from Euro-
deposit business was up, however, owing to
a slight improvement in interest margins;
- an 8.8% increase in Commission income, to
which our securities business was able to make
an important contribution, helped partly by the
continued buoyancy of the stock market;
- a substantial rise in the item Other income
due to increased profits on securities and higher
earnings from foreign exchange activities;
- a 6.2% increase in Expenditure, including the
extra costs of a non-recurring early retirement
scheme for employees aged 60 and 61The
number of employees rose from 19,301 at the
end of 1984 to 19,537 at 31 December 1985.
The contribution of foreign activities to the gross
result according to Table 5 was Fl. 473 million
or 35.5% (1984: Fl. 489 million or 38.8%).
Income was down by 2.5% and Expenditure
down 2.0% (1984: 7.5% and 11.7%,
respectively). The movements in exchange rates
have had a pronounced negative effect on the
gross result. This effect was compensated, how
ever, partly by timely hedging of the results
during the course of the year, the results of these
operations being included in Other income, and
partly by a satisfactory development of activities
in Europe and of the activities of our branches
and subsidiary LaSalle National Bank in North
America. In Central and South America, the
effect which the continuing devaluation of the
currencies of the so-called hyperinflation
countries (Argentina, Brazil, Uruguay and
Ecuador) had on the result was inadequately
compensated by the improvement in the results
as expressed in local currencies. Finally, the
decline in the gross result of the other regions,
apart from poorer results returned by a few
establishments in Asia, can be largely attributed
to the state of affairs of our minority interest
Albank Alsaudi Alhollandi, in which the effects
of the economic decline in the Middle East were
reflected even more strongly than in 1984 in
both the development of the operating result and
the increase in the size of doubtful debt
provisions.
Table 5: Geographical analysis of gross result
Domestic
859
64.5
771
61.2
Foreign:
Europe
247
18.5
215
17.1
North America
83
6.2
52
4.1
Central and South America
106
8.0
138
10.9
Other regions
37
2.8
84
6.7
473
35.5
489
38.8
Total 1332 100.0 1,260 100.0
64
1985 GROSS RESULT
1984 GROSS RESULT
IN MILLIONS OF GUILDERS
ABSOLUTE
IN
ABSOLUTE
IN
