Dow Jones Newswires: ABN AMRO says it can weather macroeconomic challenges after better-than-expected profit

by | Nov 9, 2022 | Stock Market

ABN AMRO Bank NV reported on Wednesday a better-than-expected profit for the third quarter, boosted by a recovery in deposit margins, as well as disposals and lower impairments. The Dutch lender
made a net profit of 743 million euros ($748.5 million) for the quarter, up from EUR343 million the same period a year earlier. This compares with a forecast of EUR301 million, according to a company-provided consensus.

Operating income rose 25% on year to EUR2.16 billion, beating the consensus forecast of EUR1.81 billion taken from the company’s website. The lender’s fully loaded common equity Tier 1 ratio–a measure of a bank’s financial strength–stood at 15.2% compared with from 15.5% as of the end of the second quarter, it said. ABN AMRO currently expects net interest income for the full year to be around EUR5.3 billion as deposit margins are benefiting from higher interest rates. The company said it is well-positioned to weather the macroeconomic challenges, despite concerns about the outlook. “Against the backdrop of uncertainty and volatile markets, we continue to focus on risk management. Credit quality remains good and impairments were EUR7 million for the quarter as the deteriorating macroeconomic outlook was offset by releases of non-performing loans,” Chief Executive Robert Swaak said. Write t …

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