Press Release: ABN AMRO reports net profit of EUR 673 million for Q3 2017
November 08 2017 - 1:00AM
ABN AMRO reports net profit of EUR 673 million for Q3 2017
-
Net profit up 11% compared with
Q3 2016
-
The mortgage, commercial and
corporate loan books all showed growth in constant
currencies
-
Costs continued to trend down,
benefiting from cost-saving programmes
-
Loan impairments remained low,
reflecting the strong performance of the Dutch economy
-
ROE for Q3 2017 was 13.8% (9M
2017: 15.7%) and the cost/income ratio was 56.9% (9M 2017:
57.3%)
-
On track to achieve financial
targets
-
Strong capital position,
fully-loaded CET1 ratio of 17.6%, and pro forma leverage ratio of
4.0%
Kees van Dijkhuizen, CEO, comments:
'ABN AMRO had a good third
quarter. The Q3 2017 net profit came to EUR 673 million, up 11%
year-on-year. All major loan books (the mortgage, commercial and
corporate loan books) showed continued growth in constant
currencies. Operating income showed a small decline year-on-year,
due mainly to divested activities, lower Markets and Clearing fees,
Private Equity results and accounting effects. Costs are trending
down as the benefits from the IT transformation programme and
cost-saving programmes are coming through. Over the first nine
months of the year, the cost/income ratio improved to 57.3% (9M
2016: 61.8%) and the return on equity increased to 15.7% (9M 2016:
13.4%), also benefiting from the gain on the sale of Private
Banking Asia and low impairments. Our capital position
remained strong, with a fully-loaded CET1 ratio of 17.6% at the end
of September 2017.
We have broadened our strategic
commitment to sustainable banking. As from 2018, sustainable
investments will be the norm for new Private and Retail Banking
clients in the Netherlands. We will also be contacting existing
clients to discuss a - purely voluntary - switchover from
traditional to sustainable investments. Our goal is to double the
volume of sustainable client assets in the next three years from
EUR 8 billion to EUR 16 billion. Our commitment to sustainable
banking is reflected in a further improvement of our score in the
RobecoSAM annual sustainability assessment, which serves as the
basis for the Dow Jones Sustainability Index. With a score of 91
points out of 100 - compared with 87 points in 2016 - ABN AMRO is
one of the best performing banks worldwide in this ranking.
A year ago, we announced our
intention to set up small innovators in each business which would
develop new and enhanced services for our clients in a short time
frame. New10, a fully digital lender offering business loans
ranging between EUR 20,000 and EUR 1 million, was launched in
September. New clients will receive a credit decision within 15
minutes of submitting an application. New10 went from concept to
launch in ten months. In Germany we will shortly be launching
Prospery, a digital wealth manager that offers clients wealth and
investment management through a digital platform combined with a
personal financial expert - all at a unique fixed flat rate.
Prospery is the first digital player in Europe to deliver such a
comprehensive digital wealth management proposition.'
Key figures and indicators
(in EUR millions) |
Q3 2017 |
Q3 2016 |
Change |
Q2 2017 |
Change |
9M 2017 |
9M 2016 |
Change |
|
Operating income |
2,123 |
2,222 |
-4% |
2,492 |
-15% |
6,861 |
6,393 |
7% |
|
Operating expenses |
1,209 |
1,372 |
-12% |
1,367 |
-12% |
3,929 |
3,951 |
-1% |
|
Operating
result |
914 |
849 |
8% |
1,124 |
-19% |
2,932 |
2,442 |
20% |
|
Impairment charges on loans
and other receivables |
5 |
23 |
-80% |
-96 |
|
-29 |
79 |
|
|
Income tax expenses |
236 |
220 |
8% |
260 |
-9% |
711 |
620 |
25% |
|
Underlying
profit/(loss) for the period1 |
673 |
607 |
11% |
960 |
-30% |
2,249 |
1,743 |
29% |
|
Special items |
- |
- |
|
- |
|
- |
- 271 |
|
|
Reported
profit/(loss) for the period |
673 |
607 |
11% |
960 |
-30% |
2,249 |
1,472 |
53% |
|
|
|
|
|
|
|
|
|
|
|
Underlying cost/income
ratio |
56.9% |
61.8% |
|
54.9% |
|
57.3% |
61.8% |
|
|
Underlying return on average
Equity |
13.8% |
13.8% |
|
20.0% |
|
15.7% |
13.4% |
|
|
Fully-loaded CET1 ratio |
17.6% |
16.6% |
|
17.6% |
|
17.6% |
16.6% |
|
|
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 Investor
Relations
Dies Donker Head of Investor
Relations
investorrelations@nl.abnamro.com
+31 20 6282282
ABN AMRO Press Office
Jeroen van Maarschalkerweerd,
Press Officer
pressrelations@nl.abnamro.com
+31 20 6288900
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_Quarterly_Report_2017_Q3
ABN AMRO reports net profit of EUR 673 million for Q3
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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