ABN AMRO reports net profit of EUR 595 million for Q1 2018
14 May 2018 - 3:00PM
ABN AMRO
reports net profit of EUR 595 million for Q1
2018
- Net profit of EUR 595 million
and ROE of 11.5% for Q1 2018, reflecting a strong operating result
offset by high impairments in a few specific sectors
-
Net interest income remained
strong, benefiting from loan growth especially in Dutch SMEs and
corporate loans
-
Cost savings coming through, IT
transformation and business simplification progressing
well
-
The cost/income ratio improved
to 57.9%, on track to achieve 2020 financial targets
-
Strong capital position with
CET1 ratio of 17.5%
Kees van Dijkhuizen, CEO,
comments:
'We saw a solid
start to the year with net profit coming to EUR 595 million,
reflecting a strong increase in our operating result, offset by
high impairments. Net interest income remained strong, benefiting
from loan growth, especially in Dutch SMEs and corporate loans. The
underlying cost trend in Q1 continues to benefit from cost savings.
Impairments were high this quarter due to provisions for
specialised loans in a few specific sectors. Impairment provisions
for offshore service and offshore shipping clients were
elevated as recovery is still fragile in these
sectors. The cost/income ratio improved from 60.2% to 57.9%. The
return on equity decreased from 13.2% to 11.5% and our capital
position remained strong with a fully loaded CET1 ratio of 17.5%,
including the First Time Adoption impact for IFRS 9.
We are on track
to achieve our strategic priorities and financial targets by 2020.
In the past 18 months we have realised over half of the EUR 0.9
billion targeted costs savings and we are on track to achieve the
remainder by 2020. We continue to execute the transformation plans
of our core banking systems. We are confident in our current
approach where we continuously phase-in further modernisations and
we do not intend to initiate a new core banking replacement. By
combining ABN AMRO services with those of partners we
can deliver a broader value proposition in the form of
ecosystems. For example, a major Dutch airline used the Tikkie
API to build a 'share the bill' functionality for people who buy
airline tickets for their friends. Participation in
ecosystems will become even more important for the financial
sector once PSD II has been introduced and we are well positioned
with our large client base and digital services, such
as Tikkie, Grip and our mobile banking app.
We continue to
broaden our strategic commitment to sustainability, also for
corporate clients. In March we financed the re-development of a
former prison in Amsterdam into a sustainable hub with
carbon-neutral and circular economy aspirations. We aim to become
the partner of choice for clients making a step change towards a
circular business model. ABN AMRO advises corporates as well as
banks on how to structure green bonds and arranges the issue of
these bonds for investors. I'm very proud that Environmental
Finance, an online news and analysis service, awarded ABN AMRO the
'Green Bond Awards 2018 Lead Manager of the Year - category banks'
for our consistent commitment to the green bond market.'
Key figures and indicators
(in EUR millions) |
Q1 2018 |
Q1 2017 |
Change |
Q4 2017 |
Change |
Operating income |
2,329 |
2,246 |
4% |
2,429 |
-4% |
Operating expenses |
1,348 |
1,353 |
0% |
1,653 |
-18% |
Operating result |
981 |
893 |
10% |
776 |
26% |
Impairment charges on loans and other receivables |
208 |
63 |
|
-34 |
|
Income tax expenses |
178 |
215 |
-17% |
268 |
-34% |
Profit/(loss) for the period |
595 |
615 |
-3% |
542 |
10% |
|
|
|
|
|
|
Cost/income ratio |
57.9% |
60.2% |
|
68.0% |
|
Return on average Equity* |
11.5% |
13.2% |
|
10.9% |
|
Fully-loaded CET1 ratio |
17.5% |
16.9% |
|
17.7% |
|
* Profit for the period attributable for the
owners of the parent company |
ABN AMRO Press Office
Jarco de Swart
Senior press officer, Mediarelations & PR
pressrelations@nl.abnamro.com
+31 20 6288900 |
ABN AMRO Investor
Relations
Dies Donker
head 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
595 million for Q1 2018
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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