ABN AMRO reports net profit of EUR 393 million in Q2 2021
August 11 2021 - 1:00AM
ABN AMRO reports net profit of EUR 393 million in Q2 2021
ABN AMRO reports net profit of
EUR 393 million
in Q2 2021
- Operating
performance in line with previous
quarters; net impairment release of EUR 79
million
- Return on equity of 7.6% in spite
of continued pressure on net interest income and
incidentals
- Society gradually opening up; Dutch economy
holding up well as government
support continues
- Well ahead of plan
in CIB non-core
wind-down;
over 80% reduction,
supported by loan disposals
- Full-year cost of risk
expected to be well
below the through-the-cycle
guidance of 25-30
bps
- Very strong capital
position, Basel
CET1 ratio of
18.3%
(Basel IV around
16%)
- Final 2019 dividend
of EUR 0.68 per share to be paid
in October
2021
- Making progress in executing our strategy to
be a personal bank in the digital
age
Robert Swaak, CEO, comments:
‘Society is gradually opening up as vaccination programmes
across Europe are steadily progressing and restrictions are easing.
Extensive government support measures have enabled the Dutch
economy to hold up relatively well. As a result of the improved
macroeconomic outlook we again saw a release of impairments in the
second quarter. Demand for corporate loans in the Netherlands is
still muted as strong government support continues, but it is
showing signs of stabilising and the pipeline is improving.
We are making progress in executing our strategy to be a
personal bank in the digital age serving clients where we have
scale in the Netherlands and Northwest Europe. We are well ahead of
plan in the wind-down of the CIB non-core portfolio which has been
reduced by over 80% since Q2 2020, supported by loan disposals. We
are focusing on attractive segments where we can grow profitably,
bringing convenience into the daily lives of our clients and
expertise when it matters. In mortgages we are broadening our
intermediary offering by repositioning our online label Moneyou as
a competitively priced mortgage provider. Sustainability is core to
our purpose and we are making good progress in increasing the
volume of sustainable client loans; the target of 21% by 2021 has
already been met. We are building a future-proof bank by rigorously
simplifying and centralising our operating model, delivering a
better experience for our clients. This year we are investing in
strengthening our foundation, expanding our digital and data
capabilities to enable our new client engagement model. Meanwhile
we expect to reduce the current portfolio of around 1,300 products
by at least 50% by 2024.
We reported a net profit of EUR 393 million for the second
quarter, delivering a 7.6% return on equity (11.1% excluding CIB
non-core) in spite of continued pressure on net interest income and
incidentals. Operating performance was in line with previous
quarters and asset quality is strong. Our mortgage portfolio grew
while the corporate loan book for the core bank remained stable. We
continued to focus on cost reductions as part of our goal of
achieving EUR 700 million in cost savings by 2024. Impairments
showed a net release of EUR 79 million for the second quarter as
the macroeconomic outlook improved and the wind-down of the CIB
non-core portfolio progressed. We expect cost of risk for the bank
for 2021 to be well below the through-the-cycle guidance of 25-30
basis points.
Our capital position remains very strong, with a Basel III CET 1
ratio of 18.3% (Basel IV around 16%). As the ECB will not extend
its recommendation on dividend distributions beyond September, we
will pay the final 2019 dividend of EUR 0.68 per share in October
2021. We are committed to resuming payment of dividend at a ratio
of 50% of net profit.’
Key figures and indicators (in EUR millions) |
Q2 2021 |
Q2 2020 |
Change |
Q1 2021 |
Change |
H1 2021 |
H1 2020 |
Change |
Operating
income |
1,732 |
1,985 |
-13% |
1,847 |
-6% |
3,579 |
3,909 |
-8% |
Operating expenses |
1,228 |
1,198 |
2% |
1,843 |
-33% |
3,071 |
2,499 |
23% |
Operating result |
504 |
786 |
-36% |
4 |
% |
508 |
1,410 |
-64% |
Impairment
charges on financial instruments |
-79 |
703 |
|
-77 |
-3% |
-156 |
1,814 |
|
Income tax expenses |
190 |
88 |
116% |
135 |
41% |
325 |
-4 |
|
Profit/(loss) for the period |
393 |
-5 |
|
-54 |
|
339 |
-400 |
|
|
|
|
|
|
|
|
|
|
Cost/income
ratio |
70.9% |
60.4% |
|
99.8% |
|
85.8% |
63.9% |
|
Return on
average Equity1 |
7.6% |
-0.7% |
|
-1.6% |
|
3.0% |
-4.7%% |
|
Fully-loaded
CET1 ratio |
18.3% |
17.3% |
|
17.4% |
|
18.3% |
17.3% |
|
1
Based on profit for the period attributable to the owners of the
parent company |
|
ABN AMRO
Press OfficeJarco de SwartSenior Press
Officerpressrelations@nl.abnamro.com+31 20 6288900 |
ABN AMRO
Investor RelationsFerdinand Vaandrager Head of Investor
Relations investorrelations@nl.abnamro.com+31 20 6282282
|
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)
- ABN AMRO reports net profit of EUR 393 million in Q2 2021
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