ABN AMRO reports net profit of EUR 301 million in Q3 2020
November 11 2020 - 1:00AM
ABN AMRO reports net profit of EUR 301 million in Q3 2020
ABN AMRO reports net profit of EUR 301 million in Q3
2020
- Net profit at EUR 301 million in Q3 2020, reflecting
good operational performance and moderating
impairments
- Strong digital backbone and dedication of employees
ensures consistent services to our clients during
Covid-19
- Net interest income continues to be impacted by
pressure on deposit margins and lower corporate loan
volumes
- On track to achieve a cost level of around EUR 5.1
billion for 2020, excluding provisions for the CIB
review
- Cost/income ratio for Q3 was 61.5%, return on equity
5.6%
- Strong capital position, Basel III CET1 ratio of 17.2%
and Basel IV CET1 of around 15%, provides resilience
- Progressing on CIB non-core portfolio wind-down;
outcome strategy review to be presented on 30
November
Robert Swaak, CEO, comments:
‘As the Covid-19 health crisis continues to affect us all, the
wellbeing of our clients and staff remains our main focus and we
will continue to support our clients wherever possible. Our strong
digital backbone combined with the dedication and flexibility of
our people ensures our services to clients remain consistent and
our operating result resilient. In mid-October the Netherlands
entered into a partial lockdown. We are therefore cautious about
the outlook and concerned about the long-term impact on society.
Meanwhile, we are finalising our strategy review and making good
initial progress on the wind-down of the CIB non-core portfolio. We
also continue to make progress on my other priorities: navigating
the bank through Covid-19, safeguarding our licence to operate and
further enhancing the bank’s culture.
Net profit in Q3 2020 was EUR 301 million, reflecting good
operational performance and moderating impairments under
challenging circumstances. This result was supported by a book gain
on the sale of our Paris office building, partly offset by
provisions for the wind-down of the CIB non-core portfolio.
Net interest income continues to be impacted by pressure on deposit
margins as well as lower corporate loan volumes as we reduced the
CIB non-core portfolio by some EUR 3.7 billion. We remain on track
to achieve a cost level of around EUR 5.1 billion for 2020,
excluding restructuring provisions for the CIB review. While
impairments were lower than in prior quarters, we remain cautious
and full-year impairments are expected to be below our Q2 guidance
of EUR 3 billion, closer to the Q1 guidance of EUR 2.5 billion.
In Q3, the resulting return on equity was 5.6% and the
cost/income ratio was 61.5%. We entered the Covid-19 crisis with a
strong capital position – the Q3 Basel III CET1 ratio was 17.2%
while the Basel IV CET1 ratio increased to around 15%, comfortably
above regulatory requirements. I am pleased with our strong capital
position, which provides resilience in a challenging environment.
We are committed to resuming payment of dividends, sustainably,
conditions permitting and taking into account ECB
recommendations.
I look forward to updating you on the outcome of the strategy
review at the Investor Update on 30 November.’
Key figures and indicators (in EUR
millions) |
Q3 2020 |
Q3 2019 |
Change |
Q2 2020 |
Change |
9M 2020 |
9M 2019 |
Change |
Operating
income |
2,207 |
2,101 |
5% |
1,985 |
11% |
6,115 |
6,504 |
-6% |
Operating expenses |
1,357 |
1,247 |
9% |
1,198 |
13% |
3,856 |
3,884 |
-1% |
Operating result |
850 |
854 |
|
786 |
8% |
2,260 |
2,620 |
-14% |
Impairment
charges on financial instruments |
270 |
112 |
141% |
703 |
-62% |
2,083 |
343 |
|
Income tax expenses |
279 |
184 |
52% |
88 |
|
275 |
547 |
-50% |
Profit/(loss) for the period |
301 |
558 |
-46% |
-5 |
|
-99 |
1,730 |
|
|
|
|
|
|
|
|
|
|
Cost/income
ratio |
61.5% |
59.4% |
|
60.4% |
|
63.0% |
59.7% |
|
Return on
average Equity1 |
5.6% |
11.0% |
|
-0.7% |
|
-1.3% |
11.3% |
|
Fully-loaded
CET1 ratio |
17.2% |
18.2% |
|
17.3% |
|
17.2% |
18.2% |
|
1 Based on profit for the period attributable to the owners
of the parent company |
|
ABN AMRO
Press OfficeJarco de Swart Senior Press Officer
pressrelations@nl.abnamro.com+31 20 6288900 |
ABN AMRO
Investor RelationsFerdinand VaandragerHead 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 301 million in Q3 2020
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