(News Bulletin 247) – ABN Amro announced on Wednesday that it had made a “very good start to the year” by posting a net profit above expectations in the first quarter, thanks in particular to a reduction in its costs, announcements which pushed the stock up in stock exchange.
The net profit of the Dutch bank jumped 77% to 523 million euros in the first three months of the year, against 295 million a year earlier, greatly exceeding the consensus of analysts who gave it at 370 million.
The group says it benefited from high net interest income, at 1.62 billion euros during the quarter, against 1.51 billion expected by the market, and from a low level of risk costs.
“During the first quarter, the Dutch economy continued to demonstrate its resilience,” said its managing director, Robert Swaak.
“The recent turmoil in the financial markets was triggered by specific problems within certain banks,” he added, highlighting the “resilience” of institutions in the euro zone.
ABN also highlighted the good control of its underlying costs, which fell by 2.5% quarter-on-quarter.
Its CET1 solvency ratio stood at 15% at the end of March, while the consensus was for 15.1%.
The results of the bank were well received Wednesday morning at the Amsterdam Stock Exchange, where its action took nearly 3%, the largest increase in an AEX index down 0.1%.
The stock was also one of the best performers on the STOXX Europe 600 index.
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