ABN Amro, the state-owned Dutch bank, has reported a 32 percent fall in first-quarter profits, reflecting the ongoing recession in the Netherlands.

Net profit was (EURO)454 million ($557 million), from (EURO)539 million in the same period a year ago. The company's net earnings from fees, commissions and interest all fell, while provisions for bad loans increased, mostly due to bad mortgage and personal debt in the Netherlands.

Chief executive Gerrit Zalm said Europe's sovereign debt crisis is not helping the bank's performance. "Going forward we expect loan impairments to rise, based in part on the weak outlook on the Dutch economy, and continued pressure on interest margins," he said in a statement Wednesday.

ABN was nationalized during the 2008 financial crisis, costing the Dutch state (EURO)30 billion.