ABN AMRO Press Release: ABN AMRO reports net profit of EUR 2,791 million for FY 2017
February 07 2018 - 1:00AM
ABN AMRO reports
net profit of EUR 2,791 million for FY 2017
-
Q4 2017 net profit of EUR 542
million reflects a good operating result and impairment
releases
-
FY 2017 net profit is up on
robust net interest income, cost management and impairment
releases
-
The cost/income ratio for FY
2017 was 60.1% (FY 2016: 65.9%) and the ROE 14.5% (FY 2016:
11.8%)
-
Final dividend of EUR 0.80 per
share is proposed. The FY 2017 dividend proposal of EUR 1.45 per
share (FY 2016: EUR 0.84) is in line with the pay-out target of 50%
of reported net profit
-
Strong capital position with
CET1 ratio at 17.7% and leverage ratio at 4.1%
-
Capital update: Basel III CET1
target range for 2018 of 17.5-18.5%. Dividend pay-out target of 50%
of sustainable profit. Additional distributions will be considered
when capital is within or above the target range. Combined at least
50%
Kees van Dijkhuizen, CEO,
comments:
'The Q4 2017 result was solid, with a net profit of EUR 542
million. Net interest income remained robust, despite the
challenging interest rate environment, and loan impairment releases
were recorded. The full-year 2017 profit of
EUR 2,791 million benefited from a gain on the sale of Private
Banking Asia and impairment releases. All
major loan books (mortgage, commercial and corporate) grew in 2017
and the underlying cost trend is benefiting from cost savings and
the IT transformation programme. Excluding the gain on Private
Banking Asia, the cost/income ratio would be 61.2% (target is
56-58% by 2020) and the return on equity, helped by impairment
releases, 13.4% (target is 10-13%). Our capital position remained
strong with a fully-loaded CET1 ratio of 17.7% at year-end 2017. So
all in all, good progress was made on our financial
targets.
We introduced
many digital innovations in the past year. A recent innovation is
Franx, a single digital platform for online international payments
and digital hedging of currency risks for business clients. We were
one of the first continental European banks to introduce instant
international payments, and the first large bank in the Netherlands
to launch our Developer Portal. We are very pleased with the
external recognition for our sustainability initiatives. These have
put us in the top 5% of the FTSE4Good index and the top 5% of
global banks in the Dow Jones Sustainability Index. We also won the
Circular Economy Investor Award at The Circulars 2018. The
Circulars is an initiative of the Davos World Economic Forum and
the Forum of Young Global Leaders.
In recent months,
we conducted a review of our capital position. Over the past years,
we built a sizeable capital buffer for Basel IV, which we currently
estimate will increase risk-weighted assets by around 35%. To
manage the transition to Basel IV given the remaining
uncertainties, we will keep a prudent buffer of 4-5% on top of the
current CET1 target of 13.5% and set a Basel III capital target
range for 2018 at 17.5-18.5%. This capital target will be reviewed
at year-end 2018. Our dividend policy going
forward will consist of two elements: a dividend pay-out target of
50%, on top of which additional dividends and/or share buy-backs
will be considered when the capital position is within or above the
target range. Combined it will be at least 50%.'
Key figures and indicators
(in EUR millions) |
Q4 2017 |
Q4 2016 |
Change |
Q3 2017 |
Change |
FY 2017 |
FY 2016 |
Change |
|
Operating income |
2,429 |
2,195 |
11% |
2,123 |
14% |
9,290 |
8,588 |
8% |
|
Operating expenses |
1,653 |
1,706 |
-3% |
1,209 |
37% |
5,582 |
5,657 |
-1% |
|
Operating
result |
776 |
489 |
59% |
914 |
-15% |
3,708 |
2,931 |
27% |
|
Impairment charges on loans
and other receivables |
-34 |
35 |
|
5 |
|
-63 |
114 |
|
|
Income tax expenses |
268 |
120 |
123% |
236 |
14% |
979 |
740 |
32% |
|
Underlying
profit/(loss) for the period1 |
542 |
333 |
63% |
673 |
-19% |
2,791 |
2,076 |
34% |
|
Special items |
- |
- |
|
- |
|
- |
- 271 |
|
|
Reported
profit/(loss) for the period |
542 |
333 |
63% |
673 |
-19% |
2,791 |
1,806 |
55% |
|
|
|
|
|
|
|
|
|
|
|
Underlying cost/income
ratio |
68.0% |
77.7% |
|
56.9% |
|
60.1% |
65.9% |
|
|
Underlying return on average
Equity |
10.9% |
7.3% |
|
13.8% |
|
14.5% |
11.8% |
|
|
Fully-loaded CET1 ratio |
17.7% |
17.0% |
|
17.6% |
|
17.7% |
17.0% |
|
|
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. |
|
|
|
|
|
Jeroen van
Maarschalkerweerd, Senior Press Officer
Dies Donker, head of Investor Relations
pressrelations@nl.abnamro.com
investorrelations@nl.abnamro.com
+31 20 6288900
+31 20 6282282
This press
release is published by ABN AMRO Group 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 Group Quarterly Report
fourth quarter 2017
ABN AMRO reports net profit of EUR 2,791 million for FY
2017
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
Abn Amro (NYSE:ABN)
Historical Stock Chart
From Apr 2024 to May 2024
Abn Amro (NYSE:ABN)
Historical Stock Chart
From May 2023 to May 2024