ABN AMRO Q1 2017 results

  • Operating income up y-o-y; net interest income increased 3% on the back of continued loan growth; fees and commissions were stable; other operating income was high
  • Costs up 3% y-o-y due to higher regulatory levies
  • Cost/income ratio improved to 60.2% (Q1 2016: 66.9%)
  • Loan impairments remained low  
  • ROE was 13.2% (Q1 2016: 11.1%)
  • Fully-loaded CET1 ratio strong at 16.9% and the fully-loaded leverage ratio was 3.7%

ABN AMRO have released their Q1 2017 results showing a net profit of EUR 615 million.  

Kees van Dijkhuizen, CEO, said: ‘The 2017 first-quarter results are good, with net profit increasing to EUR 615 million. We have been able to offset the low and negative rate environment and increase net interest income by growing all major loan books (mortgages, SME and corporate loans) and lowering deposit rates. Fees were stable and other operating income was higher. We made further progress in achieving our financial targets set for 2020: the cost/income ratio improved from 66.9% in Q1 2016 to 60.2% in Q1 2017, the Return on Equity increased from 11.1% in Q1 2016 to 13.2% in Q1 2017 and our capital position remained strong, with a fully-loaded CET1 ratio of 16.9% at the end of March 2017 (YE 2016: 17.0%).

One of our main objectives is to deliver convenience to our clients, both by offering innovative products digitally and by bringing them expertise and new insights. We also seek to deliver our products and services fast. For instance, our Florius label can now offer a mortgage loan within 24 hours, and we are the first mortgage provider to do so in the Dutch market, supporting our position as market leader in new mortgage origination. Similarly, Commercial Banking clients who submit a digital application for a loan of up to EUR 1 million can now obtain a credit decision from the bank within 48 hours.

Our pledge is to be a better bank contributing to a better world. With over 50% of our loan portfolio in housing and real estate, we are in a good position to make a meaningful contribution to the transition to sustainable properties in the Netherlands. In the past year we have financed the redevelopment of more than 200,000 square metres of unused commercial real estate into sustainable real estate, and we also introduced a discount for mortgages for newly built and energy-efficient homes at the end of 2016.’

Key figures and indicators

 

 (in EUR millions)

Q1 2017

Q1 2016

Change

Q4 2016

Change

Operating income

  2,246

  1,971

14%

  2,195

2%

Operating expenses

   1,353  

  1,319

3%

  1,706

-21%

Operating result

  893

 651

37%

  489

83%

Impairment charges on loans and other receivables

  63

  2

  35

79%

Income tax expenses

  215

  175

23%

  120

79%

Underlying profit/(loss) for the period1

  615

  475

30%

  333

85%

Special items

 

   

 

 

Reported profit/(loss) for the period

  615

 475

 

  333

 

 

 

 

 

 

 

Underlying cost/income ratio

60.2%

66.9%

 

77.7%

 

Underlying return on average Equity

13.2%

11.1%

 

7.3%

 

Fully-loaded CET1 ratio

16.9%

15.8%

 

17.0%

 

1 Underlying results exclude special items which distort the underlying trend