Press Release: ABN AMRO reports EUR 662 million underlying net profit for Q2 2016, up 10% y-o-y
August 17 2016 - 1:00AM
ABN AMRO reports EUR 662 million underlying net
profit for Q2 2016, up 10% y-o-y
-
Reported net profit for Q2 2016
was EUR 391 million (H1 2016: EUR 866 million) after a provision
for interest rate derivatives of EUR 271 million net of
tax
-
Underlying net profit for Q2
2016 was EUR 662 million, up EUR 62 million or 10% on Q2 2015;
underlying net profit for H1 2016 was EUR 1,136 million, virtually
unchanged compared with H1 2015
-
The new Tikkie app, for sharing
payments, already has almost 100,000 active users. Clients can now
make investment orders via their mobile banking app
-
Net interest income remained
robust; fees and commissions were negatively impacted by volatile
markets; costs were contained and loan impairments remained
low
-
Underlying ROE for Q2 2016 was
15.1% (H1 2016: 13.1%) and the underlying cost/income ratio was
57.2% (H1 2016: 61.8%)
-
Fully-loaded CET1 ratio
increased to 16.2% and the fully-loaded leverage ratio was
3.7%
-
An interim dividend of EUR 0.40
per share will be paid
Gerrit Zalm, Chairman of the
Managing Board of ABN AMRO Group, comments:
'In early July we
decided that it was in the best interests of our clients to adhere
to the advice of the committee of independent experts on the
reassessment of interest rate derivatives sold to SME clients. This
decision means clients do not have to go through a complex and
time-consuming process; they now know where they
stand.
We are extending
our current range of innovative and smart solutions. We launched
the new Tikkie app in Q2, enabling users to send payment requests
via WhatsApp. Tikkie is an innovative solution developed by ABN
AMRO, which can be used by clients with a current account at any
Dutch bank. Almost 100,000 people are already actively using this
app. Also, clients can now place their investment orders via our
Mobile Banking app.
We are well on
track with three of our financial targets: an ROE of 10-13% over
the coming years, a CET1 ratio of 11.5-13.5% and a dividend payout
ratio increasing to 50% over 2017. The
underlying net profit for H1 2016, which excludes an additional
provision for SME interest rate derivatives, was flat at EUR 1,136
million. Continued growth of our capital base - the fully-loaded
CET1 ratio increased to 16.2% - caused the ROE to decline to 13.1%,
above the target range. We will pay an interim dividend of EUR 0.40
per share, or 45% of the reported net profit. Once there is more
clarity on Basel IV, we will update our strategic financial targets
beyond 2017.
To invest in
growth and to lower the C/I ratio of 61.8% (target range is 56-60%
by 2017), we have identified EUR 200 million of cost savings in
support and control activities. This a reduction of about 25% of
this cost base. These savings are a combination of staff and
non-staff related costs, and a significant part will be realised
next year. Further cost savings in other areas are currently being
identified and will be initiated this year.'
Key figures and indicators
(in EUR millions) |
Q2 2016 |
Q2 2015 |
Change |
Q1 2016 |
Change |
H1 2016 |
H1 2015 |
Change |
|
Operating income |
2,201 |
2,126 |
4% |
1,971 |
12% |
4,172 |
4,294 |
-3% |
|
Operating expenses |
1,260 |
1,247 |
1% |
1,319 |
-5% |
2,579 |
2,465 |
5% |
|
Operating
result |
941 |
879 |
7% |
651 |
45% |
1,593 |
1,828 |
-13% |
|
Impairment charges on loans
and other receivables |
54 |
34 |
58% |
2 |
|
56 |
287 |
-80% |
|
Income tax expenses |
225 |
244 |
-8% |
175 |
29% |
400 |
398 |
1% |
|
Underlying
profit/(loss) for the period1 |
662 |
600 |
10% |
475 |
39% |
1,136 |
1,144 |
-1% |
|
Special items |
- 271 |
- |
|
- |
|
- 271 |
- |
|
|
Reported
profit/(loss) for the period |
391 |
600 |
-35% |
475 |
-18% |
866 |
1,144 |
-24% |
|
|
|
|
|
|
|
|
|
|
|
Underlying cost/income
ratio |
57.2% |
58.6% |
|
66.9% |
|
61.8% |
57.4% |
|
|
Underlying return on average
Equity |
15.1% |
15.3% |
|
11.1% |
|
13.1% |
14.7% |
|
|
Fully-loaded CET1 ratio |
16.2% |
14.0% |
|
15.8% |
|
16.2% |
14.0% |
|
|
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. |
|
|
|
|
|
ABN AMRO Press Office
ABN AMRO Investor
Relations
pressrelations@nl.abnamro.com
investorrelations@nl.abnamro.com
+31 20 6288900
+31 20 6282282
Press Release ABN AMRO Q2 results
2016
ABN AMRO Group Interim Report and Quarterly Report second quarter
2016
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX 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
HUG#2035529
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