ABN Amro Beats on Profit, Boosts Key Revenue Source Outlook
ABN Amro Bank NV reported quarterly profit that beat analysts’ estimates thanks to higher fees and growth in lending income, prompting the Dutch bank to raise the outlook for its biggest revenue source.
ABN Amro Bank reported a stronger-than-expected quarterly profit of €780 million (US$900 million) for the three months ending June, surpassing analysts' estimates. The Dutch bank credited higher fees and growth in lending income for the better-than-anticipated results. Chief executive Marguerite Berard is driving growth by expanding clearing and private banking businesses, while also focusing on cost control and efficiency measures, including job cuts and AI deployment.
The lender's shares rose by 6.3% in Amsterdam, reaching their highest level since relisting on the stock exchange in 2015. ABN Amro's acquisition of NIBC Bank from Blackstone and the integration of Hauck Aufhäuser Lampe bolstered results in the quarter. Net interest income rose 11% in the second quarter, and fees were 25% higher, both exceeding projections.
The bank anticipates commercial net interest income for the year to be €6.8 billion, up from a previous estimate of €6.4 billion. RBC Capital Markets analyst Anke Reingen praised ABN Amro's strong capital generation, which will benefit shareholders. The Dutch government, ABN Amro's largest shareholder, has reduced its stake to about 20% after the 2008 financial crisis bailout.
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- ABN Amro beats on profit, boosts key revenue source outlook businesstimes.com.sg
