ABN AMRO Bank (ABN) Q3 2024 earnings summary

Executive summary

• Q3 2024 net profit was EUR 690 million, up 7% sequentially but down 9% year-over-year, with a return on equity of 11.6%, driven by higher net interest income, strong fee growth, and net impairment releases.

• Mortgage portfolio grew by EUR 1.6 billion, maintaining market leadership and supported by new clients.

• Costs increased due to a new collective labor agreement and additional hiring, but remained under control and within guidance.

• Credit quality remained solid with a stable impaired ratio of 1.9% and net impairment releases of EUR 29 million.

• Basel III CET1 ratio improved to 14.1%, with Basel IV CET1 ratio around 14%, and capital assessment postponed to Q2 2025.

Financial highlights

• Net interest income rose to EUR 1,638 million, up 7% year-over-year and 2% sequentially, with full-year NII expected above EUR 6.4 billion.

• Fee and commission income increased 6% year-to-date, with strong contributions from Wealth Management and Corporate Banking.

• Operating expenses rose 9% year-over-year, mainly from higher personnel costs and regulatory programs.

• Net impairment releases totaled EUR 29 million, reflecting a low cost of risk.

• Operating income reached EUR 2,253 million, up 4% sequentially and 2% year-over-year.

Outlook and guidance

• Full-year costs expected to be around EUR 5.3 billion, with similar discipline into 2025 and 2026.

• FY2024 net interest income expected above EUR 6.4 billion.

• Cost of risk for FY2024 expected well below the through-the-cycle range of 15–20bps.

• Capital assessment and potential share buyback decision postponed to Q2 2025 due to Basel IV implementation.

• 2026 targets include return on equity of 9–10%, cost/income ratio around 60%, and CET1 Basel IV target of 13.5%.