ABN AMRO reports net profit of EUR 688 million for Q2 2018
08 Agosto 2018 - 7:00AM
ABN AMRO reports net profit of EUR 688 million for
Q2 2018
-
Net profit of EUR 688 million
and ROE of 13.5% for Q2 2018, as Dutch economy continued to
flourish
-
Net interest income remained
strong, despite low interest rate environment
-
Impairments were well below the
previous quarter, although still elevated
-
Strong capital position with
CET1 ratio of 18.3% due to active balance sheet
management
-
Interim dividend has been set
at EUR 0.65 per share
-
CIB update: RWA reduction of 5
billion and EUR 80 million cost savings
-
Private Banking acquisition in
Belgium of EUR 6 billion in assets under management
Kees van Dijkhuizen, CEO,
comments:
'The Dutch
economy continues to flourish and this is reflected in the
financial results for the second quarter with a solid net profit of
EUR 688 million. Net interest income remained strong, despite the
low interest rate environment. Impairments were well below the
previous quarter, although still elevated as challenges remain in
certain sectors. We continue to expect full-year impairments to be
below the through-the-cycle average of 25-30 basis points. The
cost/income ratio over the first six months was 56.5% and return on
equity was 12.5%. Our capital position increased strongly to a CET1
ratio of 18.3% due to active balance sheet management. The interim
dividend has been set at EUR 0.65 per share, in line with the
amount paid in the first half of last year, reflecting an increase
of the pay-out to 50%. We expect capital generation to continue,
improving our position to distribute capital in addition to the
targeted dividend pay-out of 50% of profit.
We have reviewed
Corporate & Institutional Banking (CIB). CIB has a
well-respected client franchise and is core to the bank. Most
activities deliver adequate through-the-cycle returns. However, CIB
as a whole does not meet the group ROE target. To improve
profitability of CIB to deliver on our target, capital allocated to
global sectors (mainly trade and commodity finance) and to highly
cyclical sectors with high earnings volatility will be reduced. The
risk-weighted assets will be reduced by 5 billion by the end of
2020 to around 34 billion. The CIB cost base will be reduced by EUR
80 million, reflecting a staff reduction of around 250 FTEs and
other savings, for which we expect to make a restructuring
provision of around EUR 50 million. The plan improves CIB's
profitability, is capital accretive and supports group financial
targets.
We want to meet
clients' needs, creating solutions that work for them in their
daily lives. Innovation and technology are critical enablers in
achieving this and we are therefore very pleased that the Vlerick
Business School has again named ABN AMRO a front runner in digital
transformation in the Netherlands. We will intensify our focus on
partnerships to create sustainable business models. We have entered
into a strategic partnership with Opportunity Network, an online
cross-border platform providing entrepreneurs with insight into
opportunities for growth, acquisitions and other plans. The
announced bolt-on acquisition doubles our assets under management
to EUR 12 billion in Belgium and strengthens our private banking
activities, providing more scale to better service our clients and
further grow our activities. We are well on track and continue to
move forward in achieving our strategic priorities and financial
targets.'
Key figures and indicators
(in EUR millions) |
Q2 2018 |
Q2 20171 |
Change |
Q1 2018 |
Change |
H1 2018 |
H1 20171 |
Change |
Operating income |
2,288 |
2,492 |
-8% |
2,329 |
-2% |
4,617 |
4,738 |
-3% |
Operating expenses |
1,261 |
1,367 |
-8% |
1,348 |
-6% |
2,609 |
2,720 |
-4% |
Operating result |
1,027 |
1,124 |
-9% |
981 |
5% |
2,007 |
2,018 |
-1% |
Impairment charges on financial instruments |
134 |
-96 |
|
208 |
|
341 |
-33 |
|
Income tax expenses |
204 |
260 |
-21% |
178 |
15% |
383 |
475 |
-19% |
Profit/(loss) for the period |
688 |
960 |
-28% |
595 |
16% |
1,283 |
1,576 |
-19% |
|
|
|
|
|
|
|
|
|
Cost/income ratio |
55.1% |
54.9% |
|
57.9% |
|
56.5% |
57.4% |
|
Return on average Equity2 |
13.5% |
20.0% |
|
11.5% |
|
12.5% |
16.7% |
|
Fully-loaded CET1 ratio |
18.3% |
17.6% |
|
17.5% |
|
18.3% |
17.6% |
|
1 The result in Q2 2017 includes the proceeds of the Private
Banking Asia divestment and high impairment releases.
2 Based on profit for the period attributable to the owners
of the parent company. |
|
ABN AMRO Press Office
Jarco de Swart
Senior Press Officer
pressrelations@nl.abnamro.com
+31 20 6288900 |
ABN AMRO Investor Relations
Ruud Jaegers
deputy head of Investor Relations
investorrelations@nl.abnamro.com
+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 reports net profit of EUR
688 million for Q2 2018
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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