ABN Amro: quarterly profit down, hurt by impairment charges
(CercleFinance.com) - Dutch bank ABN Amro posted a 3% drop in first-quarter net profit, hit by higher impairment charge.
ABN said net profit came in at 595 million euros over the first three months of the year, down from 615 million euros a year earlier.
While its cost-income ratio improved from 60.2% to 57.9%, prompting its first-quarter operating result to rise by 10% to 981 million euros, impairment charges were high in the past quarter, due to provisions for specialised loans in offshore services and offshore shipping industries, two sectors which are still seeing just a fragile recovery, the group said.
However, the bank benefited from loan growth in Dutch SMEs and corporate loans, it said.
ABN Amro also said that it was on track to achieve its strategic targets by 2020, having already realised over half of the 900 million euro target in costs savings over the past 18 months.
Despite this, ABN Amro shares were down sharply on Euronext Amsterdam this morning, tumbling 4.7%.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
ABN said net profit came in at 595 million euros over the first three months of the year, down from 615 million euros a year earlier.
While its cost-income ratio improved from 60.2% to 57.9%, prompting its first-quarter operating result to rise by 10% to 981 million euros, impairment charges were high in the past quarter, due to provisions for specialised loans in offshore services and offshore shipping industries, two sectors which are still seeing just a fragile recovery, the group said.
However, the bank benefited from loan growth in Dutch SMEs and corporate loans, it said.
ABN Amro also said that it was on track to achieve its strategic targets by 2020, having already realised over half of the 900 million euro target in costs savings over the past 18 months.
Despite this, ABN Amro shares were down sharply on Euronext Amsterdam this morning, tumbling 4.7%.
Copyright (c) 2018 CercleFinance.com. All rights reserved.