ABN AMRO Press Release: ABN AMRO reports EUR 607 million underlying net profit for Q3 2016, up 19% y-o-y
November 16 2016 - 1:00AM
ABN AMRO reports EUR 607 million
underlying net profit for Q3 2016, up 19% y-o-y
-
Underlying net profit for Q3
2016 of EUR 607 million, up 19% y-o-y, includes a restructuring
charge of EUR 108 million (net of tax) and a EUR 52 million (net of
tax) revaluation gain on our stake in Equens
-
Underlying net profit for 9M
2016 was EUR 1,743 million, up EUR 91 million or 5% on 9M
2015
-
Net interest income remained
robust; fees and commissions were lower than in 2015; costs were
contained; and loan impairments remained low
-
Underlying ROE for Q3 2016 was
13.8% (9M 2016: 13.4%) and the underlying cost/income ratio was
61.8% (9M 2016: 61.8%)
-
Fully-loaded CET1 ratio
increased to 16.6% and the fully-loaded leverage ratio was
3.7%
-
New cost savings plan of EUR
0.4 billion, affecting approximately another 1,500 FTEs
-
Pre-tax restructuring charges
of EUR 144 million in Q3 2016 and EUR 150-175 million expected in
Q4 2016
Gerrit Zalm, Chairman of the
Managing Board of ABN AMRO Group, comments:
'Our underlying
net profit increased by 19% compared with Q3 2015, to EUR 607
million, on continued robust net interest income, cost control and
low impairments. The CET1 ratio increased to 16.6%, and the 9M 2016
ROE and C/I ratio were 13.4% and 61.8% respectively. We saw an
increase in total client lending and deposit gathering this
quarter.
In 2016 we
updated and extended our strategic priorities and financial targets
towards 2020. We concluded that the strategic foundations of being
client-driven, having a moderate risk profile, investing in the
future and our people, and pursuing sustainable growth remain firm.
Our services are well recognised by our clients; for instance, our
Mobile Banking app came in 6th place globally in an industry
survey. We now want to take another step forward in delivering
in-depth expertise in a digitally savvy way to our clients and will
increase our expenditure on initiatives for growth, innovation and
digitalisation by EUR 0.4 billion by 2020 compared with 2015. To
finance these initiatives and offset cost inflation and levies of
approximately EUR 0.5 billion, we target cost savings of a similar
amount (EUR 0.9 billion) by 2020.
Building on our
Q2 cost initiatives, we have identified further cost savings of EUR
0.4 billion. This will affect approximately another 1,500 FTEs.
These savings come on top of the EUR 0.2 billion for the support
and control activities (announced in Q2 2016) and the EUR 0.3
billion (on track) for TOPS 2020 and Retail Digitalisation. We have
sharpened the cost/income target range from 56-60% by 2017 to
56-58% by 2020. As the impact of Basel IV is still unclear, we have
decided to leave the targets for the CET1 ratio (11.5-13.5%), ROE
(10-13%) and the dividend payout ratio (50% over 2017) unchanged
for now. I am confident that our plans will enable us to deliver
lasting value to our clients, now and in the future.'
Key figures and indicators
(in EUR millions) |
Q3 2016 |
Q3 2015 |
Change |
Q2 2016 |
Change |
9M 2016 |
9M 2015 |
Change |
|
Operating income |
2,222 |
2,109 |
5% |
2,201 |
1% |
6,393 |
6,403 |
0% |
|
Operating expenses |
1,372 |
1,234 |
11% |
1,260 |
9% |
3,951 |
3,700 |
7% |
|
Operating
result |
849 |
875 |
-3% |
941 |
-10% |
2,442 |
2,703 |
-10% |
|
Impairment charges on loans
and other receivables |
23 |
94 |
-75% |
54 |
-57% |
79 |
381 |
-79% |
|
Income tax expenses |
220 |
272 |
-6% |
225 |
-3% |
620 |
670 |
-7% |
|
Underlying
profit/(loss) for the period1 |
607 |
509 |
19% |
662 |
-8% |
1,743 |
1,652 |
5% |
|
Special items |
- |
- |
|
-271 |
|
- 271 |
- |
|
|
Reported
profit/(loss) for the period |
607 |
509 |
19% |
391 |
55% |
1,472 |
1,652 |
-11% |
|
|
|
|
|
|
|
|
|
|
|
Underlying cost/income
ratio |
61.8% |
58.5% |
|
57.2% |
|
61.8% |
57.8% |
|
|
Underlying return on average
Equity |
13.8% |
12.7% |
|
15.1% |
|
13.4% |
14.0% |
|
|
Fully-loaded CET1 ratio |
16.6% |
14.8% |
|
16.2% |
|
16.6% |
14.8% |
|
|
1 Underlying
results exclude special items which distort the underlying trend. A
detailed explanation of special items is provided in the Additional
financial information section. |
|
|
|
|
|
ABN AMRO reports EUR 607 million
underlying net profit for Q3 2016,
ABN AMRO Group Quarterly Report third quarter 2016
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: ABN AMRO via Globenewswire
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