Highlights of the quarter
- Very strong result, with a net profit of
EUR 870 million and an ROE of over 16%, reflecting high NII and impairment releases. All client units contributed with improved net profit - Continued strong NII, benefitting from the higher interest rate environment
- Expected costs for 2023 now around
EUR 5.2 billion ; we do not expect to reach our 2024 cost target as 2023 investments spill over, inflation is higher and AML costs will reduce more gradually - Credit quality remains solid, with impairment releases of
EUR 69 million ; buffers remain in place - Solid capital position; fully-loaded Basel III CET1 ratio of 14.9% and Basel IV CET1 ratio of around 16%. Interim dividend has been set at
EUR 0.62 per share - Updated financial KPI’s and capital framework to be presented at publication of Q4 results
'In the second quarter, we once again delivered a very strong financial result, driven by high net interest income (NII) and impairment releases, in an environment where macroeconomic and geopolitical uncertainty persisted. I am proud of the continued commitment we demonstrated to our clients in the past quarter. All client units contributed with improved net profit, and momentum in the corporate loan book and mortgage portfolio was positive. The Dutch economy cooled down somewhat, and uncertainty and persistently high inflation continued to put pressure on our clients. Despite this slowdown, the labour market remained tight and corporate and household balance sheets robust. I am pleased the bank is resilient, with a stable risk profile and a strong balance sheet. We will present our updated financial KPI’s and capital framework at publication of the Q4 results.
Net profit in the second quarter was
Credit quality remained solid in Q2 with impairment releases of
Banks play an important role in society, contributing to the real economy and creating trust. We support all our clients – private clients, entrepreneurs and companies – in their daily banking and with expertise when it matters. Society is facing climate change, the war in
Creating trust is ultimately about people. Our staff are key to delivering on our strategy and earning the trust of our clients. I would like to thank them for their commitment. And I would like to thank our clients, our shareholders and all other stakeholders for their continued support.'
Key figures and indicators (in EUR millions) | Q2 2023 | Q2 2022 | Change | Q1 2023 | Change |
Operating income | 2,223 | 1,884 | 18% | 2,142 | 4% |
Operating expenses | 1,137 | 1,321 | -14% | 1,406 | -19% |
Operating result | 1,086 | 563 | 93% | 736 | 48% |
Impairment charges on financial instruments | -69 | -62 | -10% | 14 | |
Income tax expenses | 285 | 151 | 199 | 43% | |
Profit/(loss) for the period | 870 | 475 | 83% | 523 | 66% |
Cost/income ratio | 51.1% | 70.1% | 65.6% | ||
Return on average Equity | 16.2% | 8.8% | 9.6% | ||
CET1 ratio | 14.9% | 15.5% | 15.0% |
ABN AMRO Press Office Jarco de Swart Senior Press Officer pressrelations@nl.abnamro.com +31 20 6288900 | ABN AMRO Investor Relations Head of Investor Relations investorrelations@nl.abnamro.com +31 20 6282282 |
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ABN AMRO reports net profit ofEUR 870 million for Q2 2023
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