ABN Amro private banking arm has reported a net profit of €66m for the second quarter of 2019, a 36% slump from €104m in the same quarter of 2018.

The division’s operating profit before tax for the three-month period ended 30 June 2019 was €85m, a 39% plunge from €139m a year ago.

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Operating income at the unit dropped 14% to €323m from €376m, while operating expenses fell 1% year-on-year to €228m.

Private banking unit’s cost/income ratio at the end of June 2019 was 70.6%, versus 61.1% last year.

Overall, the Dutch banking group registered a net profit of €693m for the second quarter of 2019.

This was a rise of 1% from €688m a year earlier.

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The banking group’s operating income of €2.32bn was 1% higher than the previous year.

ABN Amro CEO Kees van Dijkhuizen said: “The interim dividend has been set at €0.60 per share, a pay-out of 50% of half-year profit, which is in line with last year.

“We are within the capital target range and expect to be well placed to consider additional distributions of above 50% of profit at year-end. Interest rates continued to come down in the last quarter, predominantly impacting deposit margins.

“We are taking action by focusing on margins, developing revenue opportunities and strict cost discipline. We remain focused on our targets in a challenging environment.’