ABN AMRO said its cost/income ratio contracted significantly in the first quarter.

ABN AMRO yesterday reported a first-quarter 2025 net profit of €619 million ($694 million), rising 56 per cent on the same quarter of a year earlier. A large fall in expenses helped the bottom line because operating income dipped.

Operating income fell 4 per cent, to €2.145 billion; total operating expenses fell 19 per cent year-on-year to €1.309 billion, the Netherlands-headquartered bank said in a statement. 

The lender said its cost/income ratio narrowed sharply to 61 per cent at the end of March this year from 72 per cent a year ago. Return on average equity was 9.9 per cent, up from 6.2 per cent. 

Fees rose 8 per cent from a year earlier and all units contributed to the result. Underlying costs declined by 5 per cent. 

Under the Basel IV international capital rules for banks, ABN AMRO had a Common Equity Tier 1 ratio of 14.7 per cent.

The bank's results statement did not elaborate on performance of its wealth management and private banking areas. In June last year, an unsourced media report said ABN AMRO wants to expand its German footprint as it gets close to agreeing to buy HSBC’s wealth management operation, formerly called Trinkaus & Burkhardt. The bank did not respond to requests for comments at the time.