Dutch lender ABN Amro’s fourth-quarter profit and net interest income beat expectations on Wednesday, lifting the shares 7% to their highest in 5 years as the bank kept a lid on costs.
ABN Amro posted a net profit of 397 million euros ($412 million) for the quarter. While that was 27% below the same period the year before, it was above analysts’ average forecast of 389 million euros in a company-compiled consensus.
“Overall a strong set of results (with a somewhat) mixed guidance for 2025, but in consensus it’s evening out”, said analysts from ING Global Markets Research, while analysts at KBC Securities cited “very strong” NII, and fees income.
At 1125 GMT the stock was up 6.6%, at its highest since November 6, 2019.
The lender said net interest income rose 4% to 6.5 billion euros in 2024, above its target, mainly as a result of improved corporate banking and a short-lived boost in the treasury segment.
In contrast, net interest income was expected to dip to between 6.2 billion and 6.4 billion euros in 2025, with CEO Robert Swaak intending to compensate for lower deposit rates mainly with fee growth and cost cutting discipline.
The banking sector has benefited from rising interest rates over the last three years. However, the European Central bank is expected to cut interest rates further after it recently lowered the deposit rate to 2.75%.
ABN Amro said in January it expected to close its acquisition of HSBC’s wealth management unit in Germany in the first half of 2025, with the bank looking for future targets beyond Hauck & Aufhäuser if M&A “fits our strategic profile and if it’s financially accretive”, Swaak said on Wednesday.
“Deregulation is as relevant in Europe as it is in the US”, the CEO said, underlining the importance of a level playing field as Trump has promised to slash regulations for American banks.
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