ABN Amro: third-quarter profit falls on impairments
(CercleFinance.com) - ABN Amro said on Wednesday that third-quarter net profit fell by 46%, hit by impairment charges on financial instruments.
The Dutch lender said net profit fell to 301 million euros in the past quarter, from 558 million euros a year earlier, as it booked impairments of 270 million euros.
The bank cited "good operational performance" over the quarter and "moderating" impairments under "challenging" circumstances, noting that provisions were lower than in previous quarters.
However, ABN Amro said that it remained "cautious", even though full-year impairments are expected to be below its second-quarter guidance of three billion billion euros, and closer to the fird-quarter guidance of 2.5 billion euros.
The company pointed out that it entered the Covid-19 crisis with a "strong" capital position, with its Basel III CET1 ratio standing at 17.2% at the end of the last quarter - providing "resilience" in a "challenging environment."
Despite this, the shares fell over 5% in early trading on Euronext Amsterdam.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The Dutch lender said net profit fell to 301 million euros in the past quarter, from 558 million euros a year earlier, as it booked impairments of 270 million euros.
The bank cited "good operational performance" over the quarter and "moderating" impairments under "challenging" circumstances, noting that provisions were lower than in previous quarters.
However, ABN Amro said that it remained "cautious", even though full-year impairments are expected to be below its second-quarter guidance of three billion billion euros, and closer to the fird-quarter guidance of 2.5 billion euros.
The company pointed out that it entered the Covid-19 crisis with a "strong" capital position, with its Basel III CET1 ratio standing at 17.2% at the end of the last quarter - providing "resilience" in a "challenging environment."
Despite this, the shares fell over 5% in early trading on Euronext Amsterdam.
Copyright (c) 2020 CercleFinance.com. All rights reserved.