Financial Results
Profits Surge At ABN AMRO
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The Netherlands-based bank reported a dramatic improvement in its profit and an equally sharp fall in impairment charges.
Netherlands-based ABN
AMRO yesterday reported a profit of €552 million ($597
million) in the final three months of last year, surging from €54
million a year ago, while full-year 2021 profit rose to €1.234
billion, recovering from a loss of €45 million.
Impairment charges fell by 45 per cent in Q4 2021 from a
year ago, and slumped by 46 per cent for the whole of 2021 as the
COVID-19 position, among other forces, improved over the
year.
Operating income in Q4 rose by 27 per cent on a year earlier to
€2.284 billion, while operating costs rose just 2 per cent to
€1.433 billion, the bank said in a statement.
The cost/income ratio narrowed sharply to 62.8 per cent at the
end of 2021 from 77.8 per cent a year earlier. The bank’s
fully-loaded Common Equity Tier 1 ratio – a standard
international measure of a bank’s capital buffer – fell slightly
to 16.3 per cent from 17.7 per cent.
ABN AMRO chief executive Robert Swaak, commenting on the results,
said the wind-down of the corporate and investment bank non-core
portfolio – part of a move to cut risk exposures – has been
“largely completed” well ahead of schedule.
The bank proposed a final dividend equivalent to €0.61 per share.
In addition, it announced a share buyback of €500 million.