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AMSTERDAM, Apr 26: Dutch bank ABN AMRO NV reported a 12.1 percent rise in first-quarter net profit on Wednesday, thanks to its acquisition of Italian bank Antonveneta, cost-cutting and a healthy business in Latin America.

The Netherlands' biggest bank said it made a profit of 1 billion euros ($1.24 billion) in the three months, up from 895 million euros in the same period last year, in line with the average forecast of 1.055 billion euros given in a Reuters poll of 11 analysts.

ABN also said it would cut 2,400 jobs worldwide to accelerate cost savings, resulting in a charge of 125 million to 150 million euros in the second quarter.

The quarter was the first earnings period that included Antonveneta, which ABN won after a protracted takeover battle against Banca Popolare Italiana last year.

ABN, which restructured its business last year to focus on cross-selling banking services to small- and mid-sized clients globally, gained full control of Antonveneta last month.

Antonveneta contributed 96 million euros to profit in the quarter, ABN said, at the top end of analysts' expectations.

ABN said that it will add an additional 150 million euros in annual cost savings by 2008, boosting its cost-cutting target to 900 million euros annually.

ABN's operating profit, which includes interest, trading and investment income, rose 26.8 percent to 5.64 billion euros.

ABN shares are trading at 10 times projected 2006 earnings, while Deutsche Bank and ING have a price-earnings multiple of 11 and the European banking sector has an average multiple of 13, according to Reuters data.

Reuters