ABN AMRO Beats Q4 Net Profit, Operating Profit Market Views – Earnings Review

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By Sabela Ojea


ABN AMRO Bank NV announced its results for the fourth quarter of 2021 on Wednesday. Here’s what you need to know:


NET PROFIT: The Dutch ended the fourth quarter with a net profit of 552 million euros ($630.2 million), compared to 54 million euros a year earlier. It was expected to post a net profit of 451 million euros, based on analyst consensus compiled by the bank.


OPERATING INCOME: The bank’s operating income for the period amounted to 2.28 billion euros, against 1.80 billion euros a year earlier. Operating profit is expected to reach 2.13 billion euros, according to analysts’ forecasts compiled by ABN AMRO.


WHAT WE WATCHED:

-OPERATING EXPENSES: The bank’s operating expenses for 2021 as a whole were in line with internal forecasts of 5.3 billion euros, he said.

-CET1 RATIO: ABN AMRO’s Common Equity Tier 1 capital ratio – a measure of a bank’s resilience – came in at 16.3%, below expectations for a ratio of 17 .0%. In the fourth quarter of 2020, the ratio stood at 17.7%.

– BUYBACK PROGRAM: The lender has announced the launch of a €500 million share buyback program to manage its capital position. The program missed the sights of the market, which saw a program of around €900 million to €1.0 billion.

– DIVIDEND: The Board of Directors declared a final dividend of 0.61 euro cents per share.


Write to Sabela Ojea at [email protected]; @sabelaojeaguix

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