ABN Amro: posts flat profit due to low interest rates
(CercleFinance.com) - ABN Amro on Wednesday posted flat quarterly net profit that fell short of market expectations, impacted by low interest rates and high loan impairments in its corporate and institutional banking division (CIB).
The Dutch lender reported fourth-quarter net income of 316 million euros, exactly the same as the 316 million euros a year earlier.
ABN Amro's quarterly operating income fell by 3% to 2.1 billion euros, but expenses were down by 9% at less than 1.4 billion euros, the bank said.
In its statement, ABN Amro said it will continue to focus on cutting costs over the next few years, with costs expected to be around 5.1 billion euros in 2020, followed by under 5 billion euros thereafter.
The group also plans to continue to de-risk part of the CIB loan portfolio and will conduct a further review its CIB's activities, it said.
This report seemed to scare investors off, however, and its shares took a beating this morning on Euronext Amsterdam, down over 6%.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The Dutch lender reported fourth-quarter net income of 316 million euros, exactly the same as the 316 million euros a year earlier.
ABN Amro's quarterly operating income fell by 3% to 2.1 billion euros, but expenses were down by 9% at less than 1.4 billion euros, the bank said.
In its statement, ABN Amro said it will continue to focus on cutting costs over the next few years, with costs expected to be around 5.1 billion euros in 2020, followed by under 5 billion euros thereafter.
The group also plans to continue to de-risk part of the CIB loan portfolio and will conduct a further review its CIB's activities, it said.
This report seemed to scare investors off, however, and its shares took a beating this morning on Euronext Amsterdam, down over 6%.
Copyright (c) 2020 CercleFinance.com. All rights reserved.