Net Profit Rises Sharply At ABN AMRO In Q1

Tom Burroughes Group Editor 18 May 2017

Net Profit Rises Sharply At ABN AMRO In Q1

The banking group, which last year sold off its Asia private bank, has seen profits surge by almost a third.

ABN AMRO, the Netherlands-listed lender that sold its Asian private bank last year, has logged a net profit of €615 million ($682 million) net profit for the first quarter of 2017, surging by 30 per cent on a year earlier.

Operating income was €2.246 billion in Q1, from €1.971 billion a year earlier.

As a measure of improved margins, the bank said its cost/income ratio was 60.2 per cent in the first quarter, narrowing from 66.9 per cent a year earlier.

"We have been able to offset the low and negative rate environment and increase net interest income by growing all major loan books (mortgages, SME and corporate loans) and lowering deposit rates. Fees were stable and other operating income was higher," Kees van Dijkhuizen, chief executive, said.

In May last year, Liechtenstein-headquartered LGT completed the acquisition of ABN AMRO’s private banking business in Hong Kong, Singapore and Dubai, part of a process of merger and acquisition activity in the Asian region.


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