ABN AMRO Bank (ABN) Q1 2026 earnings summary

Executive summary

• Net profit increased by 12% year-over-year to €693 million, with return on equity at 10.7%.

• Strong growth in mortgages and corporate loans, with mortgage portfolio up €2.0bn and 20% market share.

• Fee income reached record levels, driven by clearing, market volatility, and HAL acquisition.

• Underlying costs declined, prompting a reduction in full-year 2026 cost guidance to around €5.5 billion.

• CET1 ratio stands at 15.5%, reflecting a robust capital position and RWA optimisation.

Financial highlights

• Net interest income for Q1 2026 was €1,637 million, up 5% year-over-year, mainly from HAL integration and higher mortgage/deposit volumes.

• Net fee and commission income rose 20% year-over-year to €608 million, with strong Clearing and Global Markets performance.

• Operating expenses declined 2% year-over-year to €1,277 million, with lower external staffing and IT costs.

• Cost of risk remained low at 9 basis points, with limited net impairments despite increased macroeconomic uncertainty.

• RWAs increased by €1.2 billion in Q1, mainly from corporate banking activities.

Outlook and guidance

• Full-year 2026 cost guidance lowered to around €5.5 billion, reflecting faster-than-expected cost reductions.

• Commercial NII guidance for FY2026 maintained at ~€6.4 billion, with upside potential from higher forward rates.

• Return on equity target for 2028 set at >12%, cost/income ratio <55%, CET1 ratio >13.75%.

• Committed to returning at least €7.5 billion of capital and up to 100% of net profit over 2026-2028.

• Deposit and mortgage growth on track to meet 2028 strategic ambitions.