ABN AMRO reports EUR 615 million net profit for Q1 2017
  • 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%

Kees van Dijkhuizen, CEO, comments:

'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

Hans van Zon, head of Press & PR                 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)

ABN AMRO reports EUR 615 million net profit for Q1 2017
ABN AMRO Quarterly Report first 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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