By Sabela Ojea
ABN AMRO Bank NV on Wednesday announced an increase in its net profit for the second quarter of 2022, which is significantly above market expectations, although it also recorded higher operating expenses.
The Dutch lender posted a net profit of 475 million euros ($485.1 million), up from 393 million euros a year earlier. Net profit was expected to fall to 390 million euros, according to a consensus established by the bank.
Net interest income fell to 1.27 billion euros from 1.31 billion euros a year earlier, it said, noting that it had booked impairment charges of 62 million. euros, compared to 79 million euros in the first quarter of 2022. The bank’s net interest income had been anticipated. settle at 1.30 billion euros, according to forecasts compiled by the bank.
The bank also said operating expenses rose to 1.32 billion euros from 1.23 billion euros, beating market forecasts of 1.27 billion euros. ABN AMRO said it expects to end the year with total costs of around €5.3 billion, excluding ancillary costs, “as cost savings are partially offset by higher investments and regulatory levies “.
The lender’s fully loaded CET1 ratio – a measure of a bank’s financial strength – stood at 15.5%, down from 15.7% as of March 31, it said.
“We do not yet see any signs of a deterioration in the credit environment and expect the cost of risk for 2022 to remain below the cost of risk through the cycle by around 20 basis points…Cautious buffers are in place against the uncertainties of the economic outlook,” said Chief Executive Robert Swaak.
The board declared an interim dividend of 0.32 euros per share, the lender said.
Write to Sabela Ojea at [email protected]; @sabelaojeaguix