ABN Amro's extensive cost cutting and staff reductions have failed to compensate for shrinking commission-based investment banking work, with the bank revealing a 12% fall in net profit for the first quarter of 2001.

Overall the bank has cut expenses by 7% from the last quarter, but revenues also fell 3% to €4.5bn ($4bn) as a dramatic fall in commission income outweighed a strong performance in trading activities.