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November 11, 2021

ABN AMRO private banking profit declines in Q3 2021

By Verdict Staff

The private banking unit of ABN Amro has registered a 71% year-on-year (YoY) decline in profit in the third quarter of 2021. The unit reported a net profit of €66m in Q3 2021 against €227m in the year-ago quarter.

However, the figure represents an increase of €14m compared to the unit’s profits in Q2 2021.

Net interest income was €161m in Q3 2021, down 1% from €163m recorded in the previous year quarter.

Net fee and commission income increased 25% to €154m from €123m. The increase was attributed to favourable market performance driving higher asset management fee income and securities inflow.

For the quarter ended 30 September 2021, net new assets reflected an inflow of €1.4bn, primarily in the Netherlands and Germany.

The unit reported total client assets of €205.2bn at the end of Q3, an increase of €24.4bn compared to €180.8bn in the previous year period.

Group Highlights

ABN AMRO group’s third-quarter profit rose 14% to €343m from €301m in the year-ago quarter, despite a decline in income and operating result.

Operating income plummeted 21% YoY to €1.73bn. The operating result was €432m, down 49% from €850m registered prior year quarter.

The lender closed the second quarter with a fully loaded CET1 ratio, a key measure reflecting a bank’s capital position, of 17.8%.

The ABN AMRO also is also planning to buy back shares after the first quarter of next year.

The Amsterdam-based bank said that it is currently carrying out ‘constructive dialogue’ with the Netherlands’ central bank on the possibility of the same.

Comment

ABN AMRO CEO Robert Swaak said: “Developments in the third quarter were encouraging: Dutch society has largely reopened and government support has been withdrawn, though the rise in Covid infections remains a concern. Demand for lending showed signs of recovery and both our mortgage book and corporate loan book grew.

“Our clients increasingly focus on the future and we are there to support them through our trusted relationships and expertise. We continue to deliver on our agenda as we are well ahead of plan in the wind-down of the CIB non-core portfolio, we have paid out the final 2019 dividend, have agreed a compensation scheme for revolving consumer credit and are simplifying our organisational structure.”

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