Correction

ABN AMRO Bank posts net profit of EUR 674 million in Q1 2024

[Replacement of outdated attachement Q-report with minor non-material changes]

ABN AMRO Bank posts net profit of EUR 674 million in Q1 2024

Q1 - Key messages of the quarter

• Very strong result with a net profit of EUR 674 million, driven by net interest income, fee income and low cost of risk
• Business momentum remained good; our mortgage loan book grew by EUR 0.8 billion and our corporate loan book by EUR 0.3 billion. We were market leader in mortgages in Q1
• Continued strong net interest income as we continued to benefit from the current interest rate environment
• Fee income higher, driven by good performance in all client units
• Credit quality remains solid; impairments of EUR 3 million reflecting net additions for individual files and an improved macroeconomic outlook
• Strong capital position with Basel III CET1 ratio of 13.8% and Basel IV CET1 ratio around 14%
• Third share buyback programme of EUR 500 million finalised in May
• Our new brand promise ‘For every new beginning’ reflects how we help our clients to move forward with every new beginning, building on our entrepreneurial spirit and expertise

Robert Swaak, CEO:

The Dutch economy continues to show resilience. Uncertainties remain as geopolitical developments continue to pose a risk to the growth and inflation outlook, which may also affect interest rate developments. Demand for credit remains good and both our mortgage and corporate loan books grew. We were market leader in new mortgage production, with a market share of 19%  supported by competitive pricing and the continuous improvement of the customer journey. House prices are almost back to the record levels of 2022 and sentiment is improving. We expect house prices to increase further, while the tight supply on the housing market will continue to limit the number of transactions. Energy labels are increasingly influencing house prices and we have extended the term of our mortgages for financing sustainable home improvements from 15 to 30 years to better support our clients in making their homes more sustainable.

In the first quarter of 2024 we delivered a very strong performance, with a net profit of EUR 674 million. The resulting return on equity (ROE) was 11.6%. Net interest income was strong at EUR 1,589 million as we continued to benefit from the current interest rate environment. Fee income was higher at EUR 469 million, as all client units performed better compared with both last year and last quarter. Costs came down 11% in comparison with the first quarter of 2023 as regulatory levies were lower, while staff costs for data capabilities, digitalisation and regulation programmes remained high. We expect full-year costs for 2024 to be around EUR 5.3 billion due to higher staff costs in the second half of the year.