Profit, Income Edges Up At ABN AMRO

Editorial Staff 8 August 2019

Profit, Income Edges Up At ABN AMRO

The bank set out its financial results for the second quarter.

ABN AMRO, the Netherlands-based banking group, yesterday reported a 1 per cent year-on-year rise in its second-quarter 2019 profit to €693 million ($775.6 million), a rise of 53 per cent from the first three months of this year.

Operating income in Q2 also rose by 1 per cent on the same quarter a year earlier, standing at €2.321 billion. Operating costs fell by 1 per cent, at $1.31 billion, it said in a statement.

The bank did not spell out specific results, as far as this publication could see, for its private banking operations. 

The cost/income ratio widened a touch on the year to 56.4 per cent; the bank’s CET1 ratio – a measure of a bank’s capital strength – stood at 18 per cent. 

The bank warned that it may incur costs to remediate customer due diligence (CDD) failings that have been identified by authorities at the retail banking side. It has set aside €114 million to cover such expenses.  

“In general, across the bank we will take all remedial actions necessary to ensure full compliance with legislation. Sanctions, such as an instruction, fines, may be imposed by the authorities,” Kees van Dijkhuizen, chief executive, said. 

“Interest rates continued to come down in the last quarter, predominantly impacting deposit margins. We are taking action by focusing on margins, developing revenue opportunities and strict cost discipline. We remain focused on our targets in a challenging environment,” he added.

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