ABN Amro lifts annual guidance as central bank rates drive growth | Reuters
Top line
ABN Amro raised its annual guidance and reported a nearly 30% jump in quarterly profit, driving its shares to a record high.
Summary
ABN Amro has raised its full-year commercial net interest income guidance to €6.8 billion following a strong quarterly performance that drove its shares to an all-time high. The Dutch lender reported a nearly 30% increase in quarterly profit to €780 million, bolstered by recent business acquisitions and stricter operational cost controls that lowered its cost-to-income ratio to 53.7%. Supported by a solid CET1 capital ratio of 15.9%, executive leadership is currently prioritizing the integration of existing assets rather than pursuing new acquisitions amid a resilient domestic economic backdrop.
Highlights
- ABN Amro raised its full-year commercial net interest income (NII) guidance to €6.8 billion, surpassing previous forecasts and analyst consensus.
- The Dutch bank's shares surged by approximately 5% on Euronext, reaching an all-time high in early trading.
- Quarterly profit grew nearly 30% to €780 million, beating market expectations by over €100 million.
- CEO Marguerite Bérard attributed the strong performance to a resilient Dutch economy supported by healthy household spending and consumer confidence.
- The lender's cost-to-income ratio dropped to 53.7% at the end of June from 61.5% a year earlier, surpassing its 2028 efficiency target.
- ABN Amro maintained a strong capital position with a CET1 ratio of 15.9%.
- Finance chief Ferdinand Vaandrager stated that while a moderation in the Dutch mortgage market is expected, rising housing prices will prevent material negative impacts on the balance sheet.
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