ABN Amro said its profits rose 43% in 2013, as it booked fewer investment losses.
The Dutch bank was nationalised in 2008 to prevent a meltdown of the Netherlands' financial system.
Net profit rose to €948m from €665m a year ago when the company took large losses on bonds it held in Southern Europe, notably Greece.
However, impairment charges were bigger than profits in both years, at €1.29 billion in 2012 and €1.76 billion in 2011.
This time around, the trouble was closer to home, as ABN took large loan loss provisions against exposures to the foundering Dutch property and construction markets.
ABN will pay its owners - ultimately, Dutch taxpayers - a €250m dividend for 2012. Its nationalisation cost at least €32 billion.