Gloomy future prospects for Dutch banks. After four years of crisis, banks in the Netherlands are trying to build a brighter future. The three biggest Dutch banks, which between them account for 80% of the market, have seen their net profits rise significantly over the past year: ABN Amro, €689 million; ING, €5.7 billion and Rabobank, €2.6bn. Having sold off overseas assets, however, to focus on the national market, their growth prospects remain gloomy over the medium-term. In recession since the fourth quarter of 2011, the Netherlands has seen a drop in confidence among consumers and industrial leaders. Over the medium-term, banks will therefore suffer from the slowdown in the construction industry and real estate. Mortgage lending has been drying up, with fewer loans and a lower quality of portfolios. In the light of the real economy, bank income remains weak, comparable to levels for 2011. Badly hit by the Greek crisis, ABN Amro has seen its risk costs double over the past year, putting aside a provision of €880 million to cover loans to Greek companies. Rabobank is suffering from its investment in Ireland, for which it has set aside bad debt provisions of €1.8bn. (IL/transl.fl)