View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
November 8, 2017

ABN AMRO private banking unit underlying profit increases in Q3

The private banking unit of Dutch lender ABN AMRO has reported an underlying profit of €68m for the third quarter of 2017, an increase of 26% compared to €54m a year earlier.

The bank said that the rise in profit was driven by a small increase in operating income, lower expense levels and loan impairment releases.

The unit’s quarterly operating profit before tax was €93m, a surge of 23% compared with €75m in the year ago third quarter.

Compared to last year, the unit’s operating income rose 1% to €319m and net interest income increased 6% to €167m. The division’s operating expenses dropped 3% year-on-year to €233m.

The cost/income ratio of the private banking arm was 73% verus 75.9% in the previous year.

Client assets at the end of September 2017 totalled €197.1bn. Net new assets were €1.3bn.

Overall, the banking group posted underlying profit of €673m for the third quarter of 2017, up 11% compared to €607m in the third quarter of 2016.

ABN AMRO CEO Kees van Dijkhuizen said: “ABN AMRO had a good third quarter. The Q3 2017 net profit came to EUR 673 million, up 11% year-on-year. All major loan books (the mortgage, commercial and corporate loan books) showed continued growth in constant currencies.

“Operating income showed a small decline year-on-year, due mainly to divested activities, lower Markets and Clearing fees, Private Equity results and accounting effects. Costs are trending down as the benefits from the IT transformation programme and cost-saving programmes are coming through.”

Topics in this article: ,
NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. A weekly roundup of the latest news and analysis, sent every Wednesday. The industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy


Thank you for subscribing to Private Banker International