ABN AMRO reports net profit of EUR 343 million in Q3 2021
November 10 2021 - 1:00AM
ABN AMRO reports net profit of EUR 343 million in Q3 2021
ABN AMRO reports net profit of EUR
343 million
in Q3
2021
- Net profit EUR
343
million;
return on equity
6.5% in Q3 2021, 7.8% excluding CIB
non-core
- Strong fee income
growth of
19% excluding
non-core, while deposit margin
pressure persists
- Demand for
lending showed
signs of recovery;
corporate and mortgage
loan books
grew
- Cost of risk for 2021
expected to be around
nil as the credit environment
remains benign
- Strong capital position, Basel III
CET1 ratio of 17.8%
(Basel IV CET1 of around 16%);
constructive dialogue with regulator on
potential share buybacks
Robert Swaak, CEO, comments:
‘Developments in the third quarter were encouraging: Dutch
society has largely reopened and government support has been
withdrawn, though the rise in Covid infections remains a concern.
Demand for lending showed signs of recovery and both our mortgage
book and corporate loan book grew. Our clients increasingly focus
on the future and we are there to support them through our trusted
relationships and expertise. We continue to deliver on our agenda
as we are well ahead of plan in the wind-down of the CIB non-core
portfolio, we have paid out the final 2019 dividend, have agreed a
compensation scheme for revolving consumer credit and are
simplifying our organisational structure.
Net profit in Q3 2021 was EUR 343 million, delivering a 6.5%
return on equity (7.8% excluding CIB non-core) despite continued
pressure on net interest income and a EUR 217 million provision for
revolving consumer credit. While pressure from deposit margins and
the CIB non-core wind-down continues, our operating performance
remained solid and fee income improved by 19% (excluding CIB
non-core). Impairments showed a small net release of EUR 12 million
as the credit environment remained benign. We expect the cost of
risk for 2021 to be around nil. Our capital position remains very
strong, with a Basel III CET1 ratio of 17.8% (Basel IV around 16%).
We are in a constructive dialogue with the regulator on potential
share buybacks after the FY 2021 results have been announced.
We are a personal bank in the digital age, with our strategic
pillars – customer experience, sustainability and future-proof bank
– as our guiding principles. We bring convenience into the daily
lives of our clients and expertise when it matters. Our digital
personal assistant, Anna, supports clients in their day-to-day
banking. She already handles half of all chat requests, making our
service more efficient and personal while enabling our advisers to
focus on expertise. We encourage our clients to make their homes
more sustainable and have now extended our sustainability discount
to include homes with energy label B. I am very pleased that our
ESG client assets (in line with Sustainable Finance Disclosure
Regulation definitions and disclosures) have grown to EUR 39
billion. We are building a future-proof bank, digital by design,
and continue to transfer services to our mobile banking app,
including cash withdrawals at ATMs.’
Key figures and indicators (in EUR millions) |
Q3 2021 |
Q3 2020 |
Change |
Q2 2021 |
Change |
9M 2021 |
9M 2020 |
Change |
Operating
income |
1,734 |
2,207 |
-21% |
1,732 |
|
5,313 |
6,115 |
-13% |
Operating expenses |
1,301 |
1,357 |
-4% |
1,228 |
6% |
4,372 |
3,856 |
13% |
Operating result |
432 |
850 |
-49% |
504 |
-14% |
940 |
2,260 |
-58% |
Impairment
charges on financial instruments |
-12 |
270 |
|
-79 |
-85% |
-168 |
2,083 |
|
Income tax expenses |
102 |
279 |
-64% |
190 |
-47% |
426 |
275 |
55% |
Profit/(loss) for the period |
343 |
301 |
14% |
393 |
-13% |
682 |
-99 |
|
|
|
|
|
|
|
|
|
|
Cost/income
ratio |
75.1% |
61.5% |
|
70.9% |
|
82.3% |
63.0% |
|
Return on
average Equity1 |
6.5% |
5.6% |
|
7.6% |
|
4.2% |
-1.3% |
|
Fully-loaded
CET1 ratio |
17.8% |
17.2% |
|
18.3% |
|
17.8% |
17.2% |
|
1
Based on profit for the period attributable to the owners of the
parent company |
|
ABN AMRO
Press OfficeJarco de Swart
pressrelations@nl.abnamro.com+31 20 6288900 |
ABN AMRO
Investor RelationsFerdinand
Vaandragerinvestorrelations@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 343 million in Q3 2021
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