ABN AMRO reports net profit of EUR 295 million in the first quarter
May 18 2022 - 1:00AM
ABN AMRO reports net profit of EUR 295 million in the first quarter
ABN AMRO reports net profit
of EUR 295
million in the first quarter
- Net profit
of EUR 295
million; solid
performance and loan growth
- Costs higher due to
additional AML provision and regulatory
levies; remain
fully committed to cost
target below EUR 4.7 billion
in 2024
- Credit quality remains
strong; impairments
reflect weakened
macroeconomic outlook and
potential second-order effects of the war in Ukraine
- Mortgage market share increased
to 17%; strong
operational capabilities in competitive market
- Strong capital
position; Basel
III CET1 ratio of
15.7%
(Basel IV around
16%),
including a EUR 5 billion RWA add-on for model
reviews and redevelopments
- First share buyback programme
of EUR 500 million finalised
In the first quarter of 2022, net profit was EUR 295 million.
Net interest income was EUR 1,310 million, impacted by lower
mortgage prepayment penalties and higher hedging costs. Fee income
increased by 10% compared with Q1 2021, driven by higher asset
management fee income and strong results at Clearing. Costs were
higher due to an additional EUR 50 million AML provision and higher
regulatory levies. Strategic investments remained elevated at the
beginning of the year, as we continued to focus on implementing our
new client service model.
Credit quality remains strong. Impairments in Q1 were EUR 62
million as a result of the updated macroeconomic scenarios. A
management overlay for potential second-order effects of the war in
Ukraine was offset by Covid-related releases. Risk-weighted assets
increased by EUR 6.7 billion, mainly due to a EUR 5.0 billion
add-on for model reviews and redevelopments. ABN AMRO’s capital
position remains strong, with a fully-loaded Basel III CET1 ratio
of 15.7% and a Basel IV CET1 ratio of around 16%, well above
regulatory capital requirements.
Robert Swaak, CEO, comments:
‘Our world changed significantly in the last quarter. The war in
Ukraine shook our sense of security and stability, causing further
economic uncertainty and sharp inflation. We are extremely
concerned about this conflict, which represents a direct assault on
the principles of democracy and freedom. Our thoughts are with all
those affected by the war and we aim to provide support where
possible.ABN AMRO’s direct exposure to Russia is very limited, but
we expect potential second-order effects to have an impact on our
clients. We are closely monitoring the situation and proactively
reaching out to clients.Dutch society reopened fully in the first
quarter as Covid restrictions were lifted and we saw the negative
impact of the global pandemic decrease. Demand for credit was good
and both the mortgage and corporate loan books grew. We delivered a
solid performance in the first quarter.We finalised our first EUR
500 million share buyback programme last week and remain committed
to returning capital to shareholders. We are well on track towards
meeting our targets in 2024 as we continue our journey as a
personal bank in the digital age.’
Key figures and indicators (in EUR millions) |
Q1 2022 |
Q1 2021 |
Change |
Q4 2021 |
Change |
Operating
income |
1,933 |
1,847 |
5% |
2,284 |
-15% |
Operating expenses |
1,508 |
1,843 |
-18% |
1,433 |
5% |
Operating result |
425 |
4 |
|
851 |
-50% |
Impairment
charges on financial instruments |
62 |
-77 |
|
121 |
-49% |
Income tax expenses |
68 |
135 |
-50% |
177 |
-62% |
Profit/(loss) for the period |
295 |
-54 |
|
552 |
-47% |
|
|
|
|
|
|
Cost/income
ratio |
78.0% |
99.8% |
|
62.8% |
|
Return on
average Equity |
5.4% |
-1.6% |
|
10.8% |
|
CET1
ratio |
15.7% |
17.4% |
|
16.3% |
|
ABN AMRO
Press OfficeJarco de SwartSenior Press
Officerpressrelations@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)
- 20220518 ABN AMRO reports net profit of EUR 295 million in the
first quarter
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