15/11/2013

ABN AMRO reports net profit of EUR 390 million for Q3 2013 and EUR 1,207 million for 9M 2013

ABN AMRO reports net profit of EUR 390 million for Q3 2013 and EUR 1,207 million for 9M 2013
  • Net profit for Q3 2013 was EUR 390 million and includes a release of EUR 101 million net of tax on Greek loan impairments

  • Excluding special items, net profit for Q3 amounted to EUR 289 million and increased by 31% compared with Q2 due to lower impairments in Commercial & Merchant Banking

  • Net profit over the first nine months increased marginally to EUR 1,207 million, helped by a number of large releases on loan impairments

  • Excluding special items, net profit over the first nine months declined by 28% due to higher loan impairments

  • The cost/income ratio for Q3 was 61%, compared with 60% in Q2. Year-to-date the cost/income ratio was 63%

  • An interim dividend of EUR 150 million will be paid

  • The core Tier 1 ratio improved to 13.7%. The Tier 1 ratio was 14.6% and the total capital ratio 19.4%

Gerrit Zalm, Chairman of ABN AMRO Group, comments:

“ABN AMRO posted a net profit of EUR 390 million over the third quarter of 2013. Overall, this is a satisfactory result considering the difficulties the Dutch economy is facing. The result includes a large release of EUR 101 million net of tax from the sale of the remaining Greek government-guaranteed loans. Having sold off these loans, we now have no more Greek government-guaranteed exposures. Excluding special items, such as the aforementioned releases, net profit would have amounted to EUR 289 million, an increase of EUR 69 million compared with the previous quarter due mainly to lower loan impairments in Commercial Banking. This contrasts with the nine-month results (again excluding special items) where higher loan impairments contributed to a 28% decline in net profit compared with the previous year. Looking at the third quarter segment results, Merchant Banking remained weak across a wide range of activities whereas Retail & Private Banking performed as expected.

A number of economic indicators seem to point to a bottoming out of the downturn. House prices stabilised during the third quarter. Consumer confidence is also improving, though is still clearly in negative territory. The industrial Purchasing Managers' Index is at the highest level in two years. We are, however, still very cautious. Looking ahead, the fourth quarter will be impacted by the annual bank tax and, compared with the third quarter (excluding special items), we expect higher loan impairments.”

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ABN AMRO reports net profit of EUR 390 million for Q3 2013 and EUR 1,207 million for 9M 2013 (PDF, 1MB)