Q4 - Key messages of the quarter
- Good finish to the year with a net profit of
EUR 545 million in Q4, reflecting continued high net interest income and impairment releases - Strong result in 2023, with a net profit of
EUR 2.7 billion and a return on equity of 12.2%; all client units delivered better results - Net interest income in Q4 continued to be strong and increased to
EUR 6.3 billion for 2023. Net interest income for 2024 is expected to be broadly in line with 2023 - Costs in Q4 were higher as we increased resources for data capabilities, further digitalisation of processes and sustainable finance regulation
- Credit quality continues to be solid. Impairment releases of
EUR 83 million in Q4 due to net releases on individual files and releases from model reviews and management overlays EUR 500 million share buyback announced, and final dividend proposed equivalent toEUR 0.89 per share- Capital position remains strong, with a Basel III CET1 ratio of 14.3% and a fully-loaded Basel IV CET1 ratio of around 15%
Update on capital framework and financial targets
- We confirm our strategic choices and continue our journey as a personal bank in the digital age, serving clients where we have scale in
the Netherlands andNorthwest Europe - We target a fully-loaded Basel IV CET1 ratio of 13.5% by year-end 2026 and are committed to generating and returning surplus equity to shareholders in combination with targeted growth
- For 2026, we target a return on equity of 9-10%, and a cost/income ratio of around 60%
- We will allocate capital in line with our strategic priorities, building on current market positions while maintaining strict portfolio discipline.
Net profit in Q4 was
Credit quality remains solid, with impairment releases of
We target a 13.5% CET1 on a fully-loaded Basel IV basis by year-end 2026. We are committed to generating and returning surplus equity to shareholders in combination with targeted growth in our focus segments and in specific transition themes. We will review our capital position annually at Q4 results publication. Our dividend policy remains unchanged at 50% of net profit. For 2026, we target a return on equity of 9-10%. We expect business growth at a level slightly above GDP growth. Costs for data capabilities, further digitalisation of processes and sustainable finance regulation are expected to decline by mid-2025, enabling us to invest further in revenue-generating initiatives. Our cost/income ratio target is around 60% in 2026.
In the past year, we faced challenges such as the continued climate crisis, inflation, and the energy crisis sparked by the war in
We seek long-term value creation for all our stakeholders, financial as well as non-financial. Healthy profits enable us to invest in growth, safe and secure banking and innovative products for our clients. I am pleased that the availability of our online and mobile services is very stable. Strong, safe and profitable banks are important for society as they support economic growth by financing companies and investments, facilitating the payment system and helping detect financial crime. A healthy profit is also key to ensuring confidence and trust in banks, contributing to financial stability.
After having served two terms as
Over the past few years, we have worked hard to transform the bank, creating a platform to successfully deliver on our strategy. In the next few years, we will accelerate our journey towards becoming a personal bank in the digital age with a clear licence to grow. Our staff have demonstrated tremendous agility and determination throughout this process. I am pleased that the outcome of the
Key figures and indicators (in EUR millions) | Q4 2023 | Q4 2022 | Change | Q3 2023 | Change |
Operating income | 2,041 | 1,861 | 10% | 2,211 | -8% |
Operating expenses | 1,462 | 1,343 | 9% | 1,228 | 19% |
Operating result | 580 | 518 | 12% | 983 | -41% |
Impairment charges on financial instruments | -83 | 32 | -21 | ||
Income tax expenses | 117 | 132 | -11% | 246 | -52% |
Profit/(loss) for the period | 545 | 354 | 54% | 759 | -28% |
Cost/income ratio | 71.6% | 72.1% | 55.5% | ||
Return on average Equity | 9.5% | 6.4% | 13.6% | ||
CET1 ratio | 14.3% | 15.2% | 15.0% |
ABN AMRO Press Office Jarco de Swart Senior Press Officer pressrelations@nl.abnamro.com +31 20 6288900 | ABN AMRO Investor Relations John Heijning Head of Investor Relations investorrelations@nl.abnamro.com +31 20 6282282 |
This press release is published by ABN AMRO Bank N.V. and contains inside information within the meaning of article 7 (1) to (4) of Regulation (EU) No 596/2014 (Market Abuse Regulation).
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ABN AMRO Bank posts net profit ofEUR 545 million in Q4 2023
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