ABN AMRO reports net profit of EUR 478 million for Q1 2019
15 May 2019 - 3:00PM
ABN AMRO reports net profit of EUR 478 million for Q1 2019
ABN AMRO reports net profit of EUR 478 million for Q1
2019
- Good progress on strategy in a more demanding
environment; new sustainable propositions launched, refocus of
businesses and costs tightly managed
- Net profit was down 20% year-on-year; Q1 2018 included
significant gains on (equity) participations
- Total client lending up in Q1 2019; net interest income
impacted by elevated liquidity management costs
- Impairments were lower, due partly to active derisking
of parts of the CIB loan portfolio in 2018
- Strong Basel III capital position; CET1 ratio of 18.0%
does not include Q1 2019 profit; Basel IV CET1 largely unchanged
versus YE 2018
Kees van Dijkhuizen, CEO, comments: ‘We are making good progress
on embedding our strategy. The economic and interest rate
environment has become more demanding, and hence we are actively
managing costs and working on measures to support revenues. We have
developed new propositions, such as a mortgage facility allowing
homeowners to invest up to EUR 25,000 in energy efficiency measures
for their homes and a mortgage solution for seniors enabling them
to cash out home equity without selling their property. Strict
compliance is our licence to operate, and we remain vigilant in
detecting financial crime. The acceleration of our Client Due
Diligence remediation programmes at Commercial Banking and ICS is
progressing.
We continue to refocus our businesses. In Private Banking, we
started integrating the Belgium acquisition, and the announced sale
of our activities in the Channel Islands will conclude our
divestments in this business. The sale of a majority stake in
Stater was recently announced and the refocus of Corporate &
Institutional Banking (CIB) is progressing well. Client lending at
Commercial Banking increased by 2.8% sequentially, whereas
continued strict pricing discipline with respect to mortgages
resulted in a 0.6% decline of the mortgage portfolio. Looking
ahead, we see a well-filled mortgage pipeline and expect our market
share in new origination to increase again in Q2 2019. Private
Banking saw its assets under management grow by EUR 15.6 billion in
Q1 2019 due to an acquisition, market performance and inflow of net
new assets.The Q1 2019 net profit was EUR 478 million. Net interest
income was impacted by temporarily elevated liquidity management
costs. Operating expenses include seasonally high regulatory levies
offset by effective cost management. We are pleased to see lower
loan impairments compared with last year, in part due to active
derisking of parts of the CIB loan portfolio in 2018. If regulatory
levies were to be divided equally over the year, return on equity
and the cost/income ratio would have been 10.2% and 60.2%
respectively. The Basel III CET1 ratio, which does not include the
Q1 2019 profit, was strong at 18.0%. In this more demanding
environment with rising regulatory and compliance costs, we remain
focused on our financial targets.’
Key figures and indicators (in EUR
millions) |
Q1 2019 |
Q1 2018 |
Change |
Q4 2018 |
Change |
Operating
income |
2,081 |
2,329 |
-11% |
2,157 |
-4% |
Operating expenses |
1,327 |
1,348 |
-2% |
1,514 |
-12% |
Operating result |
754 |
981 |
-23% |
643 |
17% |
Impairment
charges on loans and other receivables |
102 |
208 |
-51% |
208 |
|
Income tax expenses |
174 |
178 |
-3% |
119 |
46% |
Profit/(loss) for the period |
478 |
595 |
-20% |
316 |
51% |
|
|
|
|
|
|
Cost/income
ratio |
63.8% |
57.9% |
|
70.2% |
|
Return on
average Equity* |
9.2% |
11.5% |
|
6.0% |
|
CET1
ratio |
18.0% |
17.5% |
|
18.4% |
|
* Profit for the period attributable for the owners of the
parent company |
ABN AMRO
Press OfficeJarco de SwartSenior Press
Officerpressrelations@nl.abnamro.com+31 20 6288900 |
ABN AMRO
Investor RelationsDies Donkerhead of Investor Relations
investorrelations@nl.abnamro.com+31 20 6282282 |
This press release is published by ABN AMRO Group N.V. and
contains inside information within the meaning of article 7 (1) to
(4) of Regulation (EU) No 596/2014 (Market Abuse Regulation)
- ABN AMRO reports net profit of EUR 478 million for Q1 2019
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