ABN Amro: misses earnings estimates on high impairments
(CercleFinance.com) - ABN Amro on Wednesday posted fourth-quarter net profit of 316 million euros, down 42%, missing market expectations due to high loan impairments.
Notably, impairment charges on financial instruments jumped to 208 million euros in the last three months of 2018, the Dutch lender said in a statement.
"This is explained by the exposure of the bank to specific sectors such as oil services, transport and jewelery," one analyst commented.
Also, the group's cost/income ratio deteriorated to 70.2%, from 68% over the fourth quarter.
ABN said that it is on track to meeting its financial targets for 2020 and confirm its guidance, although these comments failed to lift investor confidence.
The shares, listed on Euronext Amsterdam, were down 5.5% after the earnings report.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
Notably, impairment charges on financial instruments jumped to 208 million euros in the last three months of 2018, the Dutch lender said in a statement.
"This is explained by the exposure of the bank to specific sectors such as oil services, transport and jewelery," one analyst commented.
Also, the group's cost/income ratio deteriorated to 70.2%, from 68% over the fourth quarter.
ABN said that it is on track to meeting its financial targets for 2020 and confirm its guidance, although these comments failed to lift investor confidence.
The shares, listed on Euronext Amsterdam, were down 5.5% after the earnings report.
Copyright (c) 2019 CercleFinance.com. All rights reserved.