LONDON (Thomson Financial) – The Royal Bank of Scotland Group Plc expects the synergy gains from the acquisition of Dutch rival ABN Amro to exceed targets, chairman Tom McKillop said.
RBS led a consortium that bought ABN Amro (nyse: ABN – news – people ) for 72 billion euros last year. Spain’s Banco Santander and Belgo-Dutch bank Fortis (other-otc: FORSY.PK – news – people ) are members of the consortium.
McKillop told shareholders at RBS’s AGM that the bank over the past six months has confirmed the financial benefits it will derive from combining the businesses of RBS and ABN Amro.
‘Indeed, we now expect these benefits to be even greater than those we originally anticipated. By 2010, when we have completed the integration process, we expect to achieve synergies totaling almost 2.3 billion euros a year,’ he said.
Very cool, business continues at RBS, that it continues to deliver revenue and return for it’s shareholders is all that matters, everything else is noise. Integrating an organization is always going to take time for the integration to occur, for time for return on investment to be realized. Do check out this interesting article.