ABN AMRO reported more than half more earnings last year than a year earlier. Among other things, the bank has benefited from the increase in interest rates, which means that ABN can count on larger margins on customers’ savings. “We are pleased that we were able to maintain interest income,” says CEO Robert Swaak.
Almost 1.9 billion euros of profit remained below the line, in 2021 it was still 1.2 billion. Interest income has risen sharply. ABN AMRO wants to reward shareholders by buying half a billion euros of outstanding shares. This intervention, which reduces the number of outstanding shares, increases the value of the shares. In recent months, there has also been growth in the mortgage portfolio, while costs have generally decreased following reorganisations initiated previously.
“Based on that, we’ve done very well,” says Swaak. ‘A very good result, we are pleased to have kept interest income at a good level which means we are constantly paying attention to costs. We owe our year-on-year revenue growth to our customers and employees.’
Digitization
Digitization remains high on the bank’s agenda. ‘Our customers indicate that they find digitization desirable. We bet. If you see that customer does not come to the office, you digitize the bank. We must ensure that vulnerable groups in society can also be served.’ And to that end, ABN employs 100 so-called care coaches nationwide who visit people’s homes to help them with banking matters, Swaak explains.
Robust bumpers
According to the CEO, the bank has strong buffers with which it is able to finance the buyback of its shares, provided that 32 million has been added to the strop pot. ‘While we are seeing slightly increased inflow in the specialty goods department, this is not at the levels we have seen in other crises. We make sure to keep those buffers.’
What also contributed to the earnings jump was that the full-year figures for 2021 were still heavily influenced by one-off entries. The bank then concluded a transaction of 480 million euros with the Public Prosecutor’s Office for deficiencies in the fight against money laundering. A lot of money was also set aside to compensate customers who had paid too high interest on a loan.
Source: BNR
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
