ABN Amro still sees 2026 cost to income ratio about 60%

ABN Amro still sees 2026 cost to income ratio about 60%

ABN AMRO, one of Europe's leading financial institutions, has released its second-quarter (Q2) 2025 financial results, showcasing a robust performance despite geopolitical uncertainties. The bank reported a net profit of EUR 606 million, a 9.4% return on equity, and a continued expansion of its mortgage portfolio and client assets.


Key highlights from the Q2 2025 results include:
- Net Profit: EUR 606 million, a testament to the bank's solid financial performance.
- Return on Equity: 9.4%, indicating a strong profitability.
- Mortgage Portfolio Growth: Expanded by EUR 1.8 billion to EUR 160 billion, reflecting continued growth in this segment.
- Client Assets: Increased by EUR 8.6 billion.
- Cost Discipline: Underlying costs were slightly lower than the previous quarter, driven by reduced external full-time equivalent (FTE) staff.
- Credit Quality: EUR 6 million in net impairment releases, reflecting limited net additions for individual files and a release of management overlays.
- Capital Position: Further optimisation of risk-weighted assets (RWAs) resulted in a Common Equity Tier 1 (CET1) ratio of 14.8%, adjusted for a EUR 250 million share buyback program. The interim dividend was set at EUR 0.54 per share.
- Strategic Initiatives: ABN AMRO completed the acquisition of Hauck Aufhäuser Lampe (HAL) and announced the launch of neobank BUUT, further strengthening its market position.

ABN AMRO CEO Marguerite Bérard highlighted the bank's resilience and growth, stating, "The second quarter of 2025 was a solid quarter for ABN AMRO, with continued growth in our mortgage portfolio and net impairment releases."

The bank's economists expect the Dutch economy to grow by 1.6% in 2025, driven by strong fundamentals such as rising employment, wage growth outpacing inflation, and prudent fiscal policy. The housing market in the Netherlands is projected to see house prices rise by 8% in 2025, driven by income growth and limited housing supply.

ABN AMRO remains committed to maintaining its cost-to-income ratio target of around 60% for 2026, reflecting its cost discipline and strategic initiatives aimed at enhancing profitability and optimising its capital position.

References:
[1] https://finance.yahoo.com/news/abn-amro-posts-net-profit-050000667.html
[2] https://www.globenewswire.com/news-release/2025/08/06/3128019/0/en/ABN-AMRO-posts-net-profit-of-EUR-606-million-in-Q2-2025.html