The results of the Dutch bank ABN Amro exceeded expectations, with a 21% jump in second quarter net profits, to 475 million euros.
Analysts in the bank’s own survey had forecast net profit of 312 million euros for the April-June quarter, down from 393 million euros in the corresponding period of 2021.
ABN’s earnings were boosted by the general economic recovery recorded in the Netherlands, which boosted demand for corporate and mortgage loans, while also improving the credit standing of existing customers.
This offset an 8% increase in operating costs, mainly due to the intensity of anti-money laundering efforts and investments to adapt to changes in the operating regulatory framework.
Costs thus exceeded the average forecast of analysts, while net interest income “missed” forecasts, with a decrease of 3%, to 1.27 billion euros.
For the full year, the company anticipates total interest income of 5.2 billion euros.
ABN, one of the three dominant banks in the Netherlands, until recently expected the specific size to be around 5.1 billion euros.
The ECB, according to ABN, has approved the possible execution of a share purchase program worth up to 250 million euros, on the condition that part of the stake held by the Dutch state, which owns 56% of the bank, should be sold.
Source: Capital
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
