GlobeNewswire by notified

ABN AMRO Bank posts net profit of EUR 674 million in Q1 2024

Share

ABN AMRO Bank posts net profit of EUR 674 million in Q1 2024


Q1 - Key messages of the quarter

  • Very strong result with a net profit of EUR 674 million, driven by net interest income, fee income and low cost of risk
  • Business momentum remained good; our mortgage loan book grew by EUR 0.8 billion and our corporate loan book by EUR 0.3 billion. We were market leader in mortgages in Q1
  • Continued strong net interest income as we continued to benefit from the current interest rate environment
  • Fee income higher, driven by good performance in all client units
  • Credit quality remains solid; impairments of EUR 3 million reflecting net additions for individual files and an improved macroeconomic outlook
  • Strong capital position with Basel III CET1 ratio of 13.8% and Basel IV CET1 ratio around 14%
  • Third share buyback programme of EUR 500 million finalised in May
  • Our new brand promise ‘For every new beginning’ reflects how we help our clients to move forward with every new beginning, building on our entrepreneurial spirit and expertise

Robert Swaak, CEO:

The Dutch economy continues to show resilience. Uncertainties remain as geopolitical developments continue to pose a risk to the growth and inflation outlook, which may also affect interest rate developments. Demand for credit remains good and both our mortgage and corporate loan books grew. We were market leader in new mortgage production, with a market share of 19%  supported by competitive pricing and the continuous improvement of the customer journey. House prices are almost back to the record levels of 2022 and sentiment is improving. We expect house prices to increase further, while the tight supply on the housing market will continue to limit the number of transactions. Energy labels are increasingly influencing house prices and we have extended the term of our mortgages for financing sustainable home improvements from 15 to 30 years to better support our clients in making their homes more sustainable.

In the first quarter of 2024 we delivered a very strong performance, with a net profit of EUR 674 million. The resulting return on equity (ROE) was 11.6%. Net interest income was strong at EUR 1,589 million as we continued to benefit from the current interest rate environment. Fee income was higher at EUR 469 million, as all client units performed better compared with both last year and last quarter. Costs came down 11% in comparison with the first quarter of 2023 as regulatory levies were lower, while staff costs for data capabilities, digitalisation and regulation programmes remained high. We expect full-year costs for 2024 to be around EUR 5.3 billion due to higher staff costs in the second half of the year. 

Credit quality remains solid and impairments in Q1 were EUR 3 million as net additions for individual files, mainly at Corporate Banking, were almost fully offset by the improved macroeconomic outlook and a decrease in management overlays. Risk-weighted assets increased by EUR 4 billion, mainly reflecting model-related add-ons and seasonal business developments. Our capital position remains strong, with a fully-loaded Basel III CET1 ratio of 13.8% and a Basel IV CET1 ratio around 14%. We continue to focus on the optimisation of our capital position and are fully committed to generating and returning surplus equity to shareholders in combination with targeted growth. In early May we finalised our third share buyback programme, which had been announced in February.

Last month marked the beginning of 200 years of ABN AMRO, as our oldest predecessor, the Netherlands Trading Society (Nederlandsche Handel-Maatschappij), was established in April 1824. Over the years, we have often led the field with innovative products and have supported various global enterprises from their infancy. In 1928 we opened a Women’s Bank for women who wanted to handle their own banking and in 1948 we launched a travelling bank branch in the form of a bus that drove around in new neighbourhoods. Today we continue to build on this entrepreneurial spirit and expertise, always centred around our clients.

Our new brand promise ‘For every new beginning’, which we launched in March, projects our history into the future. We promise our clients to help them move forward with every new beginning, big or small. To ensure we live up to our promise, we are accelerating our journey towards becoming a personal bank in the digital age with a clear licence to grow. We continue to consolidate the bank's foundations by transforming our application processes and improving our model and data landscape, while streamlining our operations to become more effective and remain competitive. Our cost discipline remains important, and I am fully committed to our strategic targets.

I would like to welcome Caroline Oosterloo-Van ‘t Hoff, who will take on the role of Chief Risk Officer on an interim basis while we are in the process of appointing a successor to Tanja Cuppen. Our staff are the backbone of our bank, showing tremendous flexibility and determination to serve our clients. I would like to thank them for making us the bank we are. Our clients are crucial to us, and I realise that their trust is our most important asset. We do not take that for granted.

ABN AMRO Press Office
Jarco de Swart
Senior Press Officer
pressrelations@nl.abnamro.com
+31 20 6288900
ABN AMRO Investor Relations
John Heijning
Head of Investor Relations
investorrelations@nl.abnamro.com
+31 20 6282282




Key figures and indicators
 (in EUR millions)
Q1 2024Q1 2023ChangeQ4 2023Change
Operating income 2,197 2,142 3% 2,041 8%
Operating expenses 1,257 1,406 -11% 1,462 -14%
Operating result94073628%58062%
Impairment charges on financial instruments 3 14 -83
Income tax expenses 263 199 32% 117 125%
Profit/(loss) for the period67452329%54524%
Cost/income ratio 57.2% 65.6% 71.6%
Return on average Equity 11.6% 9.6% 9.5%
CET1 ratio 13.8% 15.0% 14.3%

This press release is published by ABN AMRO Bank N.V. and contains inside information within the meaning of article 7 (1) to (4) of Regulation (EU) No 596/2014 (Market Abuse Regulation).


Attachments

To view this piece of content from www.globenewswire.com, please give your consent at the top of this page.
To view this piece of content from ml-eu.globenewswire.com, please give your consent at the top of this page.

About GlobeNewswire by notified

GlobeNewswire by notified
GlobeNewswire by notified
One Liberty Plaza - 165 Broadway
NY 10006 New York

https://notified.com

GlobeNewswire by notified is one of the world's largest newswire distribution networks, specializing in the delivery of corporate press releases financial disclosures and multimedia content to the media, investment community, individual investors and the general public.

Subscribe to releases from GlobeNewswire by notified

Subscribe to all the latest releases from GlobeNewswire by notified by registering your e-mail address below. You can unsubscribe at any time.

Latest releases from GlobeNewswire by notified

Subsea7 awarded a contract for the Belinda field in the UK North Sea25.5.2024 14:01:09 CEST | Press release

Luxembourg – 25 May 2024 - Subsea7 S.A. (Oslo Børs: SUBC, ADR: SUBCY) today announced the award of a sizeable1 contract by Serica Energy, for the Belinda field development south-east of the Triton FPSO. The Belinda field is operated by Serica Energy and located approximately 190 kilometres east of Aberdeen in the UK Central North Sea, with a water depth of 95 metres. The contract scope includes project management, engineering, procurement, construction and installation (EPCI) of a 5-kilometre 8” production pipeline with a 3” piggy-backed gas lift line and an electro-hydraulic controls (EHC) umbilical. Subsea7’s scope also includes associated subsea structures and tie-ins to the Triton Floating Production Storage & Offloading (FPSO) vessel operated by Dana Petroleum, via an existing production manifold near the Triton riser base and for controls at the Evelyn valve skid. Project management and engineering work will commence immediately in Aberdeen. The offshore activities are scheduled

Novartis atrasentan Phase III data show clinically meaningful proteinuria reduction further advancing company's IgA nephropathy (IgAN) portfolio25.5.2024 12:15:00 CEST | Press release

In the ALIGN study, atrasentan, in addition to supportive care with a renin-angiotensin system (RAS) inhibitor,demonstrated a statistically significant 36.1% proteinuria (protein in urine) reduction vs. placebo + supportive care at 36 weeks1 Endothelin A (ETA) receptor activation contributes to elevated proteinuria in IgAN2-5; atrasentan is a potent, selective ETA receptor antagonist with potential to reduce persistent proteinuria and preserve kidney function for a broad patient population1 IgAN is a heterogeneous, progressive, rare kidney disease with a need for effective, targeted therapies6,7; up to 30% of patients with persistent proteinuria (≥1 g/day) progress to kidney failure within 10 years8 Through its rare kidney disease portfolio, Novartis is committed to exploring a range of treatment options with different modes of action to slow IgAN progression Basel, May 25, 2024 – Novartis today presented results from a pre-specified interim analysis of the Phase III ALIGN study of atr

Novartis presents latest Phase III Fabhalta® (iptacopan) data in C3 glomerulopathy (C3G) showing clinically meaningful and statistically significant 35.1% proteinuria reduction vs. placebo25.5.2024 12:00:00 CEST | Press release

Secondary endpoint data for estimated glomerular filtration rate (eGFR) showed numerical improvement over 6 months vs. placebo1; additional 6-month open-label data to be presented at a future medical meeting2,3Fabhalta showed a favorable safety profile with no new safety signals1C3G, an ultra-rare kidney disease caused by alternative complement pathway overactivation, progresses to kidney failure in ∼50% of patients within 10 years4-7; currently there are no treatments approved for C3G7-9 Fabhalta, an oral Factor B inhibitor of the alternative complement pathway, selectively targets the underlying cause of C3G1; late-stage development program ongoing across several other rare diseases10-13 Basel, May 25, 2024 – Novartis today presented results from the 6-month, double-blind period of the Phase III APPEAR-C3G study of Fabhalta® (iptacopan) at the late-breaking clinical trials session of the European Renal Association (ERA) Congress1. Patients treated with Fabhalta in addition to support

Metasphere Labs Announces Development of Innovative Carbon Credit Protocol for Grid-Scale Batteries24.5.2024 22:05:00 CEST | Press release

VANCOUVER, British Columbia, May 24, 2024 (GLOBE NEWSWIRE) -- Metasphere Labs Inc. (formerly Looking Glass Labs Ltd., "Metasphere" or the "Company") (Cboe Canada: LABZ) (OTC: LABZF) (FRA: H1N) is excited to announce an innovative initiative aimed at accelerating the decarbonization of the electricity grid through the development of a pioneering carbon credit protocol for grid-scale batteries. Innovative Carbon Credit Protocol The Company is committed to leveraging advanced technology to address critical environmental challenges. The new carbon credit protocol will enable grid-scale batteries to monetize their environmental attributes by generating carbon credits for the carbon reductions achieved through optimized battery operations. This protocol is designed to incentivize the deployment and operation of grid-scale batteries, ensuring they play a pivotal role in the transition to a clean energy future. Submission to Pure Sky Carbon Credit Registry The Company intends to submit this pr

Nokia Corporation: Repurchase of own shares on 24.05.202424.5.2024 21:30:00 CEST | Press release

Nokia Corporation Stock Exchange Release 24 May 2024 at 22:30 EEST Nokia Corporation: Repurchase of own shares on 24.05.2024 Espoo, Finland – On 24 May 2024 Nokia Corporation (LEI: 549300A0JPRWG1KI7U06) has acquired its own shares (ISIN FI0009000681) as follows: Trading venue (MIC Code)Number of sharesWeighted average price / share, EUR*XHEL362,1533.55CEUX--BATE--AQEU--TQEX--Total362,1533.55 * Rounded to two decimals On 25 January 2024, Nokia announced that its Board of Directors is initiating a share buyback program to return up to EUR 600 million of cash to shareholders in tranches over a period of two years. The first phase of the share buyback program in compliance with the Market Abuse Regulation (EU) 596/2014 (MAR), the Commission Delegated Regulation (EU) 2016/1052 and under the authorization granted by Nokia’s Annual General Meeting on 4 April 2023 started on 20 March 2024 and ends by 18 December 2024 with a maximum aggregate purchase price of EUR 300 million. Total cost of tra

HiddenA line styled icon from Orion Icon Library.Eye