Press Release: ABN AMRO reports EUR 662 million underlying net profit for Q2 2016, up 10% y-o-y
(Thomson Reuters ONE) -
ABN AMRO reports EUR 662 million underlying net profit for Q2 2016, up 10% y-o-y
* Reported net profit for Q2 2016 was EUR 391 million (H1 2016: EUR 866
million) after a provision for interest rate derivatives of EUR 271 million
net of tax
* Underlying net profit for Q2 2016 was EUR 662 million, up EUR 62 million or
10% on Q2 2015; underlying net profit for H1 2016 was EUR 1,136 million,
virtually unchanged compared with H1 2015
* The new Tikkie app, for sharing payments, already has almost 100,000 active
users. Clients can now make investment orders via their mobile banking app
* Net interest income remained robust; fees and commissions were negatively
impacted by volatile markets; costs were contained and loan impairments
remained low
* Underlying ROE for Q2 2016 was 15.1% (H1 2016: 13.1%) and the underlying
cost/income ratio was 57.2% (H1 2016: 61.8%)
* Fully-loaded CET1 ratio increased to 16.2% and the fully-loaded leverage
ratio was 3.7%
* An interim dividend of EUR 0.40 per share will be paid
Gerrit Zalm, Chairman of the Managing Board of ABN AMRO Group, comments:
'In early July we decided that it was in the best interests of our clients to
adhere to the advice of the committee of independent experts on the reassessment
of interest rate derivatives sold to SME clients. This decision means clients do
not have to go through a complex and time-consuming process; they now know where
they stand.
We are extending our current range of innovative and smart solutions. We
launched the new Tikkie app in Q2, enabling users to send payment requests via
WhatsApp. Tikkie is an innovative solution developed by ABN AMRO, which can be
used by clients with a current account at any Dutch bank. Almost 100,000 people
are already actively using this app. Also, clients can now place their
investment orders via our Mobile Banking app.
We are well on track with three of our financial targets: an ROE of 10-13% over
the coming years, a CET1 ratio of 11.5-13.5% and a dividend payout ratio
increasing to 50% over 2017. The underlying net profit for H1 2016, which
excludes an additional provision for SME interest rate derivatives, was flat at
EUR 1,136 million. Continued growth of our capital base - the fully-loaded CET1
ratio increased to 16.2% - caused the ROE to decline to 13.1%, above the target
range. We will pay an interim dividend of EUR 0.40 per share, or 45% of the
reported net profit. Once there is more clarity on Basel IV, we will update our
strategic financial targets beyond 2017.
To invest in growth and to lower the C/I ratio of 61.8% (target range is 56-60%
by 2017), we have identified EUR 200 million of cost savings in support and
control activities. This a reduction of about 25% of this cost base. These
savings are a combination of staff and non-staff related costs, and a
significant part will be realised next year. Further cost savings in other areas
are currently being identified and will be initiated this year.'
Key figures and
indicators
(in EUR H1 H1
millions) Q2 2016 Q2 2015 Change Q1 2016 Change 2016 2015 Change
----------------------------------------------------------------------------
Operating
income 2,201 2,126 4% 1,971 12% 4,172 4,294 -3%
Operating
expenses 1,260 1,247 1% 1,319 -5% 2,579 2,465 5%
----------------------------------------------------------------------------
Operating
result 941 879 7% 651 45% 1,593 1,828 -13%
Impairment
charges on
loans and other
receivables 54 34 58% 2 56 287 -80%
Income tax
expenses 225 244 -8% 175 29% 400 398 1%
----------------------------------------------------------------------------
Underlying
profit/(loss)
for the
period(1) 662 600 10% 475 39% 1,136 1,144 -1%
Special items - 271 - - - 271 -
----------------------------------------------------------------------------
Reported
profit/(loss)
for the period 391 600 -35% 475 -18% 866 1,144 -24%
Underlying
cost/income
ratio 57.2% 58.6% 66.9% 61.8% 57.4%
---------
Underlying
return on
average Equity 15.1% 15.3% 11.1% 13.1% 14.7%
---------
Fully-loaded
CET1 ratio 16.2% 14.0% 15.8% 16.2% 14.0%
(1) Underlying results exclude special items which distort the underlying
trend. A detailed explanation of special items is provided in the Additional
financial information section.
ABN AMRO Press Office ABN AMRO Investor Relations
pressrelations(at)nl.abnamro.com investorrelations(at)nl.abnamro.com
+31 20 6288900 +31 20 6282282
ABN AMRO Group Interim Report and Quarterly Report second quarter 2016:
http://hugin.info/172722/R/2035529/758154.pdf
Press Release ABN AMRO Q2 results 2016:
http://hugin.info/172722/R/2035529/758153.pdf
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: ABN AMRO via GlobeNewswire
[HUG#2035529]
Unternehmensinformation / Kurzprofil:
Datum: 17.08.2016 - 07:01 Uhr
Sprache: Deutsch
News-ID 489543
Anzahl Zeichen: 6412
contact information:
Town:
Amsterdam
Kategorie:
Business News
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