ABN AMRO reports modest loss of EUR 45 million for FY2020
10 Febbraio 2021 - 7:00AM
ABN AMRO reports modest loss of EUR 45 million for FY2020
ABN AMRO reports modest loss of EUR 45 million for
FY2020
- Q4 2020 net profit EUR 54 million, reflecting solid
operational performance in a challenging environment
- Dutch economy and housing market resilient; FY
impairments below guidance, expected to decline in
2021
- Good progress on wind-down of CIB non-core; portfolio
has declined by around 45% since Q2
- Net interest income continues to be impacted by
pressure on deposit margins and lower corporate loan
volumes
- Delivered on cost savings programme of EUR 1.1 billion;
further cost savings of EUR 700 million by 2024
- Very strong capital position, Basel III CET1 ratio of
17.7% (Basel IV above 15%); well placed to pay FY19
dividend
- No dividend proposed over 2020; remain committed to
resuming payments of dividend sustainably
- Strategy review including targets for the longer term
presented in November: a personal bank in the digital
age
Robert Swaak, CEO, comments:
‘Net profit in Q4 was EUR 54 million, reflecting solid
operational performance and lower impairments under challenging
circumstances. Net interest income continued to be impacted by
pressure on deposit margins and lower corporate loan volumes,
partly due to the wind-down of CIB non-core. We delivered on a EUR
1.1 billion cost programme, reaching our cost target of EUR 5.1
billion for 2020 (excluding restructuring provisions for the CIB
wind-down).
The financial results for 2020 were marked by the impact of
Covid-19 and large exceptional client files. We closed the year
with a modest loss of EUR 45 million. The resulting ROE for 2020
was an unsatisfactory -0.8% and the cost/income ratio was 66%.
Excluding CIB non-core, ROE was around 5%.
I am proud of the commitment we demonstrated to our clients in
the past year and the difference our staff have made, true to our
purpose ‘Banking for better, for generations to come’. I would like
to thank our clients for their continued trust.
In the strategy review presented in November we made clear
choices and announced targets for the longer term. We will be a
personal bank in the digital age, focused on the Netherlands and
Northwest Europe. We are making good progress in the wind-down of
CIB non-core as we have reduced the portfolio by around 45% since
Q2. I am proud that ABN AMRO has once again achieved a high score
in the S&P Global’s SAM Corporate Sustainability Assessment,
putting us in the top 10% of most sustainable banks worldwide.
Our capital position remains very strong, with a fully-loaded
Basel III CET1 ratio of 17.7% (Basel IV CET1 ratio above 15%). This
provides resilience and positions us well to pay FY2019 dividend,
conditions permitting. Based on the ECB’s revised recommendation
and the loss recorded in 2020, regrettably no dividend will be
proposed over 2020. We are committed to resuming payment of
dividends, sustainably, taking into account the ECB’s
recommendation.
The Dutch economy and housing market remain resilient, as the
government’s effective support programmes continue. We expect that
the roll-out of the vaccination programme will facilitate a
significant lifting of restrictions in Q2, rapidly leading to a
strong economic rebound in the second half of the year. We expect
lower impairment levels than in 2020. The bank continues to operate
from a position of strength, with a distinct profile, clear
strategic focus and a very strong capital position. We are
cautiously optimistic about the prospects for the bank as we
execute on our strategy.’
Key figures and indicators (in EUR
millions) |
Q4 2020 |
Q4 2019 |
Change |
Q3 2020 |
Change |
FY 2020 |
FY 2019 |
Change |
Operating
income |
1,800 |
2,101 |
-14% |
2,207 |
-18% |
7,916 |
8,605 |
-8% |
Operating expenses |
1,401 |
1,384 |
1% |
1,357 |
3% |
5,256 |
5,268 |
|
Operating result |
400 |
717 |
-44% |
850 |
-53% |
2,660 |
3,337 |
-20% |
Impairment
charges on financial instruments |
220 |
314 |
-30% |
270 |
-18% |
2,303 |
657 |
|
Income tax expenses |
126 |
87 |
45% |
279 |
-55% |
401 |
634 |
-37% |
Profit/(loss) for the period |
54 |
316 |
-83% |
301 |
-82% |
-45 |
2,046 |
|
|
|
|
|
|
|
|
|
|
Cost/income
ratio |
77.8% |
65.9% |
|
61.5% |
|
66.4% |
61.2% |
|
Return on
average Equity1 |
0.7% |
6.0% |
|
5.6% |
|
-0.8% |
10.0% |
|
Fully-loaded
CET1 ratio |
17.7% |
18.1% |
|
17.2% |
|
17.7% |
18.1% |
|
1 Based on profit for the
period attributable to the owners of the parent company |
|
ABN AMRO
Press OfficeJarco de SwartSenior Press
Officerpressrelations@nl.abnamro.com+31 20 6288900 |
ABN AMRO
Investor RelationsFerdinand Vaandrager 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)
- ABN AMRO reports modest loss of EUR 45 million for FY2020
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