ABN Amro: quarterly results miss; shares hit
(CercleFinance.com) - ABN Amro's quarterly results fell short of expectations, with its net profit down 24%.
On Wednesday the Netherlands' largest domestic lender posted third-quarter net profit of 558 million euros, down from 738 million in the third quarter of 2018.
Notably, impairment charges rose to 112 million euros over the quarter, from 106 million euros a year ago.
Net interest income was stable, at about 1.62 billion euros, despite the low interest rate environment, ABN said.
"The third quarter was a mixed quarter," commented CEO Kees van Dijkhuizen. "The sector is facing major challenges, including the continuing low interest rate environment," he pointed out.
Analysts at UBS concurred. "Net interest income headwinds and cost inflation remain key concerns to us", the broker wrote in a note this morning.
The ABN Amro stock was down 6.2% on Euronext Amsterdam after these results.
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