A collective labour agreement – taking effect at the start of July – and more resources for data capabilities and regulatory programmes affected the bottom-line result in the three months to end-September.

ABN AMRO, the Netherlands-headquartered banking group, reported a 9 per cent year-on-year fall in third-quarter 2024 profit, standing at €690 million ($732.9 million). Profit also fell 7 per cent from the previous quarter.

Operating income rose 2 per cent to €2.253 billion; operating costs rose 6 per cent to €1.334 billion. Impairment charges widened to €29 million for the quarter, while income tax expenses declined. 

The group said its cost/income ratio widened a touch to 59.2 per cent at the end of September; its return on average equity was 11.6 per cent, falling from 13.6 per cent a year earlier. The lender’s Common Equity Tier 1 ratio – a standard international yardstick of capital “shock absorber” – was 14.1 per cent. 

“Our fee income was strong, driven by higher payment services fees within Personal & Business Banking, higher asset management fees at Wealth Management and higher transaction volumes at Clearing and Global Markets,” Robert Swaak, CEO, said in a statement. 

In May this year, the bank built out its northwest European wealth management and corporate banking services by buying Hauck Aufhäuser Lampe. ABN AMRO acquired the business from China-based Fosun for €672 million. It already operates a German private banking business, Bethmann. The Frankfurt-based bank, which has branches across Germany, has been building its presence in Germany for some time.

In June, reports said that the lender was close to agreeing a deal to buy HSBC’s wealth management operation, formerly called Trinkaus & Burkhardt.

Swaak said costs were increased by the bank's new collective labour agreement which became effective as of 1 July and by further increases in spending on data capabilities and regulatory programmes. He said ABN AMRO expects full-year costs to be around €5.3 billion.