First-half net, at 1.44 billion euros ($1.52 billion), pipped analysts' expectations of 1.16 to 1.4 billion euros. Earnings per share rose 28 per cent to 0.97 euros from 0.76 euros.

The figures were welcomed by investors, who sent ABN Amro shares up 1.35 per cent to 22.50 euros in flat early trade.

The forecast of at least 30 per cent profit growth over the full year also well exceeds ABN AMRO's financial targets of 12.5 percent average annual growth in net profits and 10 percent growth in earnings per share.

Kalff said the Netherlands' largest bank had reaped the fruits of a buoyant economy.

"We have benefited from the healthy overall economic climate and the positive stance adoptedby the financial markets," he said, adding all divisions contributed to the swell in growth.

Previously troubled economies in Asia and Latin America performed better than expected.

"Our Asian operations profited from the cautious economic recovery witnessed in this region. In Brazil, Banco Real did far better than many imagined possible six months ago," Kalff said.

Specific bad debt provisions rose 146 million euros to 385 million euros, with 86 million of this due to the consolidation of the Banco Real Group. The fund for general banking risks however fell 8.8 per cent to 331 million euros.

Banco Real, acquired last July for $2.1 billion, gave the region's results a sizeable boost, with pre-tax profit rising a massive 328 per cent to 287 million euros from 67 million in the same period last year. Banco Real contributed 166 million euros, or some 58 per cent of the total.

Analysts were impressed with the results, particularly the performance of the international division, which saw total pre-taxprofit climb 29 per cent to 1.09 billion euros.

"Last year everybody was anxious ABN Amro's international business would not fare very well... obviously this is not the case," said MeesPierson analyst Harry Luchtenveld.

Elsewhere, pre-tax profit at the Netherlands division rose 8 per cent to 649 million euros and investment banking pre-tax climbed 26 per cent to 334 million euros.

ABN Amro said it would concentrate on more profitable business units, such as asset management, private banking and corporate finance, to achieve sustainable, profitable growth and sharpen the bank's strategy.