ABN AMRO reports EUR 960 million underlying net profit for Q2 2017
August 09 2017 - 1:00AM
ABN AMRO reports EUR 960 million underlying net profit for Q2 2017
-
Net profit for Q2 2017 includes
a EUR 200 million book gain on the sale of Private Banking
Asia
-
The mortgage and Commercial
Banking loan books continued to grow
-
Costs, excluding incidentals,
are trending down
-
Loan impairments benefited from
continued growth of the Dutch economy and model
refinements
-
ROE for Q2 2017 was 20.0% (H1
2017: 16.7%) and the cost/income ratio was 54.9% (H1 2017:
57.4%)
-
Fully-loaded CET1 ratio
increased to 17.6% and the fully-loaded leverage ratio improved to
3.9%
-
An interim dividend of EUR 0.65
per share will be paid
-
ABN AMRO commits to 2
megatonne reduction of carbon emissions in the Netherlands by
2030
Kees van Dijkhuizen comments:
'We are diligently executing our
strategy. We continue to invest in our digital strategy and
introduced several new features for our mortgage products in Q2. An
example is the 'My Mortgage' platform, which allows clients to
carry out activities relating to their mortgage application
digitally and when it suits them best, including uploading
documents and viewing their mortgage offer. We are on track with
our IT transformation programme.
The 2017 second-quarter result, a
net profit of EUR 960 million, was positively impacted by a book
gain of EUR 200 million on the sale of Private Banking Asia and
refinements of two risk models. The underlying trend in the second
quarter was generally positive and supported by continued growth of
the Dutch economy. The mortgage and Commercial Banking loan books
continued their growth path. The CIB loan book declined on the back
of a lower US dollar and lower oil prices. Excluding these effects,
this loan book showed growth as well.
The underlying cost development
is starting to show the benefits from the previously announced
cost-saving plans. The cost/income ratio improved to 57.4% in H1
2017 (H1 2016: 61.8%) and the return on equity increased to 16.7%
(H1 2016: 13.1%). Both benefited from the incidentals mentioned.
Pending Basel IV, we increased our capital position to a
fully-loaded CET1 ratio of 17.6% at the end of June 2017. If there
is no agreement on Basel IV this year, we will present an updated
view on our capital position in the first quarter of 2018. The
interim dividend for H1 2017 has been set at EUR 0.65 per share.
Over the full-year 2017 we intend to pay out 50% of the reported
net profit as dividend.
ABN AMRO is committed to making
residential and commercial real estate in the Netherlands more
sustainable. We aim to improve the average energy efficiency of our
own and our clients' properties to label 'A' by 2030. This
represents a reduction of 2 megatonnes of carbon emissions in the
Netherlands, which is equivalent to the annual emissions produced
by 800,000 cars. We are already implementing measures at our own
branches and headquarters, and will facilitate our clients in this
process by offering online tools, advice and financing products. In
this way we will create value for clients, employees, investors and
society as a whole.'
Key figures and indicators
(in EUR millions) |
Q2 2017 |
Q2 2016 |
Change |
Q1 2017 |
Change |
H1 2017 |
H1 2016 |
Change |
|
Operating income |
2,492 |
2,201 |
13% |
2,246 |
11% |
4,738 |
4,172 |
14% |
|
Operating expenses |
1,367 |
1,260 |
9% |
1,353 |
1% |
2,720 |
2,579 |
5% |
|
Operating
result |
1,124 |
941 |
19% |
893 |
26% |
2,018 |
1,593 |
27% |
|
Impairment charges on loans
and other receivables |
-96 |
54 |
|
63 |
|
-33 |
56 |
|
|
Income tax expenses |
260 |
225 |
15% |
215 |
21% |
475 |
400 |
19% |
|
Underlying
profit/(loss) for the period1 |
960 |
662 |
45% |
615 |
56% |
1,576 |
1,136 |
39% |
|
Special items |
- |
- 271 |
|
- |
|
- |
- 271 |
|
|
Reported
profit/(loss) for the period |
960 |
391 |
146% |
615 |
56% |
1,576 |
866 |
82% |
|
|
|
|
|
|
|
|
|
|
|
Underlying cost/income
ratio |
54.9% |
57.2% |
|
60.2% |
|
57.4% |
61.8% |
|
|
Underlying return on average
Equity |
20.0% |
15.1% |
|
13.2% |
|
16.7% |
13.1% |
|
|
Fully-loaded CET1 ratio |
17.6% |
16.2% |
|
16.9% |
|
17.6% |
16.2% |
|
|
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.
Brigitte Seegers, Press Office
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)
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Press Release Q2 2017
ABN AMRO Group Quarterly Report second quarter 2017
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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