Press Release: ABN AMRO reports EUR 2,076 million underlying net profit for FY 2016, up 8% y-o-y
15 February 2017 - 5:00PM
ABN AMRO reports
EUR 2,076 million underlying net profit for FY 2016, up 8%
y-o-y
-
Underlying net profit for Q4
2016 of EUR 333 million, up 23% y-o-y, after net restructuring
costs of EUR 153 million
-
In 2016, net interest income
remained robust; fees and commissions were lower than in 2015;
costs were impacted by restructuring provisions; loan impairments
were low
-
Underlying ROE for FY 2016 was
11.8% (FY 2015: 12.0%); the underlying cost/income ratio was 65.9%
(FY 2015: 61.8%) and excluding restructuring costs 61.8%
-
Fully-loaded CET1 ratio
increased to 17.0% and the fully-loaded leverage ratio improved to
3.9%
-
Based on a reported EPS of EUR
1.87, a final dividend of EUR 0.44 per share is being proposed,
bringing the total 2016 dividend to EUR 0.84 per share (FY 2015:
EUR 0.81)
Kees van Dijkhuizen, CEO of ABN
AMRO Group, comments:
'The
fourth-quarter results are solid. We are a financially healthy and
robust bank. The underlying net profit was EUR 333 million for the
fourth quarter and EUR 2,076 million for the full year, an increase
of 8% compared with 2015. This past quarter we achieved loan growth
in all of our major loan books: we were the number one provider of
new mortgages in the Netherlands for the second consecutive year,
the SME loan portfolio in the Netherlands grew modestly again after
years of decline, and we onboarded new corporate clients
internationally. As the cost/income ratio is still too high, we
announced a restructuring plan in the second half of 2016. The ROE
was 11.8% and the capital position strengthened further. We have
increased the proposed dividend for full-year 2016 to EUR 0.84 per
share. This is a payout ratio of 45% of the reported net
profit.
We recently
announced a new management structure, designed to make the bank
even more client-driven, agile and efficient. The new structure
consists of a statutory Executive Board and an Executive Committee.
In the Executive Committee, the number of business lines
represented has doubled (Retail Banking, Commercial Banking,
Corporate & Institutional Banking and Private Banking). The new
management structure creates a stronger client focus and explicit
dedication to the business activities at senior executive
level.
I want to thank
our staff for their hard work and dedication to our clients and the
bank, and our clients for their business in this increasingly
competitive industry. I would also like to express my gratitude to
the four members of the Managing Board who have announced their
departure in the past few months. Gerrit Zalm, Caroline Princen,
Chris Vogelzang and Joop Wijn made very valuable contributions to
rebuilding the new ABN AMRO.'
Key figures and indicators
(in EUR millions) |
Q4 2016 |
Q4 2015 |
Change |
Q3 2016 |
Change |
FY 2016 |
FY 2015 |
Change |
|
Operating income |
2,195 |
2,052 |
7% |
2,222 |
-1% |
8,588 |
8,455 |
2% |
|
Operating expenses |
1,706 |
1,528 |
12% |
1,372 |
24% |
5,657 |
5,228 |
8% |
|
Operating
result |
489 |
524 |
-7% |
849 |
-42% |
2,931 |
3,227 |
-9% |
|
Impairment charges on loans
and other receivables |
35 |
124 |
-72% |
23 |
51% |
114 |
505 |
-77% |
|
Income tax expenses |
120 |
128 |
-6% |
220 |
-45% |
740 |
798 |
-7% |
|
Underlying
profit/(loss) for the period1 |
333 |
272 |
23% |
607 |
-45% |
2,076 |
1,924 |
8% |
|
Special items |
- |
- |
|
- |
|
- 271 |
- |
|
|
Reported
profit/(loss) for the period |
333 |
272 |
23% |
607 |
-45% |
1,806 |
1,924 |
-6% |
|
|
|
|
|
|
|
|
|
|
|
Underlying cost/income
ratio |
77.7% |
74.5% |
|
61.8% |
|
65.9% |
61.8% |
|
|
Underlying return on average
Equity |
7.3% |
6.3% |
|
13.8% |
|
11.8% |
12.0% |
|
|
Fully-loaded CET1 ratio |
17.0% |
15.5% |
|
16.6% |
|
17.0% |
15.5% |
|
|
1 Underlying
results exclude special items which distort the underlying trend. A
detailed explanation of special items is provided in the Additional
financial information section. |
|
|
|
|
|
Hans van Zon,
head of Press & PR
Dies Donker, head of Investor Relations
pressrelations@nl.abnamro.com
investorrelations@nl.abnamro.com
+31 20 6288900
+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).
Press Release ABN AMRO Q4 results
2016
ABN AMRO Group Quarterly Report fourth quarter 2016
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: ABN AMRO via Globenewswire
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