ABN AMRO press release: Pre-closing announcements
15 October 2018 - 5:00PM
Pre-closing announcements
The third quarter 2018 results of ABN AMRO are
expected to include several incidental items and a change in
allocation of income.
Incidental items in Q3 2018
The third quarter 2018 results will include the following
items:
-
A restructuring provision of EUR 27 million
related to the previously announced CIB update (to be booked in
CIB). Additional provisions are expected to be booked at a later
date.
-
The closing of the sale of ABN AMRO Bank
(Luxembourg) s.a. led to an additional EUR 12 million gain in
Private Banking.
Change in allocation of deposit income following
model update
From Q3 2018, the allocation of Net Interest income (NII) between
Group Functions and the business segments has changed. This follows
improvements to the model for non-maturing deposits (deposits and
current accounts with no tenor) enabling us to calculate better the
duration of these deposits. The improvements have led to a
shortening of the modelled duration of non-maturing deposits. As a
result, the bank's overall hedging position has been adjusted in
order to keep ABN AMRO's interest rate sensitivity modest. The
total impact of this model update on Group NII is limited,
reflecting higher hedging costs within Group Functions (approx. EUR
40 million per annum).
The model update has resulted in a lower transfer
price being paid by Asset & Liability Management (ALM, part of
Group Functions) to the business segments in respect to
non-maturing deposits (mainly Retail, Private and Commercial
Banking) which results in an increase in the NII of Group
Functions. As ALM manages interest rate risk on behalf of the
business segments, we will reallocate ALM's NII to the business
segments. The allocation will be proportional to the equity
allocated per segment.
The combined impact of these measures on the
business segments in the third quarter 2018 is approximately EUR 30
million lower NII for Retail Banking, approximately EUR 10 million
lower NII for Private Banking, approximately EUR 20 million lower
NII for Commercial Banking while CIB NII will be approximately EUR
20 million higher and Group Functions NII approximately EUR 40
million higher. Over time, the development of this impact is
dependent on market interest rate movements and developments in the
associated client rates.
The third quarter results are scheduled to be
published on 7 November 2018.
Investor day details
As previously announced, ABN AMRO will host its first Investor Day
on Friday 16 November 2018. The purpose of the Investor Day is to
introduce the new Executive Committee, provide an update on our
achievements since IPO, address ABN AMRO's strategic ambitions with
respect to sustainability, customer focus and business
transformation and update investor focus areas such as IT, business
outlook and capital position.
The event to be held in London, will start at
09:30 and end at 15:30. The event will be livestreamed through a
webcast available on our website abnamro.com/ir.
ABN AMRO Press Office
ABN AMRO Investor
Relations
Jarco de
Swart
Dies Donker
Senior Press Officer
Head of Investor Relations
pressrelations@nl.abnamro.com
investorrelations@nl.abnamro.com
+31 20
6288900
+31 20 6282282
ABN AMRO Press release - Q3 2018
Pre-closing announcements
This
announcement is distributed by West Corporation on behalf of West
Corporation 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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