ABN AMRO reports modest loss of EUR 54 million in the first quarter
12 Mai 2021 - 07:00AM
ABN AMRO reports modest loss of EUR 54 million in the first quarter
ABN AMRO reports modest loss of EUR 54
million in the first quarter
- Net loss of EUR
54 million included
AML settlement of EUR 480 million
recorded in the first quarter
- Operational performance in line with
previous quarters; net impairment
release of EUR 77 million
- Dutch economy still
weathering the Covid
crisis relatively well; rebound expected
in second half of the year
- Full-year cost of risk
(excluding CIB
non-core) at or below
through-the-cycle guidance of 25-30 basis
points
- Mortgage market share increased to
17%;
reflecting strong
operational capabilities
- Strong capital
position; Basel
III CET1 ratio of
17.4% (Basel IV
above
15%)
- Basel IV threshold of 15%
for share buybacks to
be recalibrated at
Q4 2021; stand ready to
pay FY 2019 dividend
Robert Swaak, CEO, comments:
“Last month, we accepted a settlement offer of EUR 480 million
from the Dutch Public Prosecution Service as the outcome of the AML
investigation into ABN AMRO Bank N.V. in the Netherlands. We are
fully committed to our moderate risk profile and our role as a
gatekeeper of the financial system. The settlement means we can now
turn to the future and focus on our strategic priorities and
financial targets. Our market share of new production in mortgages
increased to 17% in Q1 2021, reflecting strong operational
capabilities valued by clients. We are making good progress in
winding down the CIB non-core business, supported by the recently
announced disposal of part of our Trade & Commodity Finance
portfolio.
We continue to navigate the bank through Covid-19 and support
our clients wherever possible. The Dutch economy continues to
weather the Covid crisis relatively well, supported by government
programmes. We expect a strong economic rebound later this year as
lockdown restrictions ease, provided the vaccination programme
progresses steadily.
Excluding the EUR 480 million AML settlement recorded in the
first quarter, we reported a EUR 426 million net profit.
Operational performance was in line with previous quarters. Net
interest income was impacted by continued pressure on deposit
margins and lower corporate loan volumes as the CIB non-core
portfolio was wound down further. We achieved the first cost
reductions as part of our goal of achieving EUR 700 million in cost
savings by 2024. Our AML remediation programme is on track; we
reconfirm our overall cost guidance. Impairments showed a net
release of EUR 77 million for the first quarter as credit quality
remained stable while government support continued. Based on the
current economic outlook we expect that 2021 cost of risk for the
bank (excluding CIB non-core) will be at or below the
through-the-cycle guidance of 25-30 basis points. CIB non-core
impairments remain uncertain but are expected to be significantly
below last year.
Our capital position remained very strong with a Basel III CET 1
ratio of 17.4% (Basel IV above 15%) after absorption of the AML
settlement and finalisation of the targeted review of internal
models. The Basel IV threshold for share buybacks, currently at
15%, will be recalibrated at Q4 2021. We stand ready to pay FY 2019
dividend, ECB conditions permitting.”
Key figures and indicators (in EUR millions) |
Q1 2021 |
Q1 2020 |
Change |
Q4 2020 |
Change |
Operating
income |
1,847 |
1,924 |
-4% |
1,800 |
3% |
Operating expenses |
1,843 |
1,300 |
42% |
1,401 |
32% |
Operating result |
4 |
624 |
-99% |
400 |
-99% |
Impairment
charges on financial instruments |
-77 |
1,111 |
|
220 |
|
Income tax expenses |
135 |
-92 |
|
126 |
7% |
Profit/(loss) for the period |
-54 |
-395 |
86% |
54 |
|
|
|
|
|
|
|
Cost/income
ratio |
99.8% |
67.6% |
|
77.8% |
|
Return on
average Equity |
-1.6% |
-8.7% |
|
0.7% |
|
CET1
ratio |
17.4% |
17.3% |
|
17.7% |
|
ABN AMRO
Press OfficeJarco de SwartSenior Press
Officerpressrelations@nl.abnamro.com+31 20 6288900 |
ABN AMRO
Investor RelationsFerdinand VaandragerHead of 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 54 million in the first
quarter
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