• Profit: EUR690 million driven by higher net interest income, higher fee income, and net impairment releases.

• Basel III CET1 Ratio: Increased to 14.1%.

• Basel IV CET1 Ratio: Remains around 14%.

• Mortgage Portfolio Growth: Total volume up by EUR1.6 billion.

• Net Interest Income (NII): Expected full year NII of above EUR6.4 billion.

• Fee Income Growth: Year-to-date increase of 6% compared to the same period last year.

• Expenses: Increased due to new collective labor agreement and additional hiring, with a full year guidance of EUR5.3 billion.

• Impairments: Net impairment releases with a stable impaired ratio of 1.9%.

• RWAs: Decreased by EUR2.5 billion due to data quality improvements and business developments.

• Warning! GuruFocus has detected 3 Warning Sign with ABMRF.

Release Date: November 13, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• ABN AMRO Bank NV (ABMRF) reported a strong profit of EUR690 million for Q3 2024, driven by higher net interest income, fee income, and net impairment releases.

• The bank's mortgage book showed solid growth, with production rising by 50% compared to the previous year, contributing to a net growth of EUR4 billion since January.

• ABN AMRO Bank NV (ABMRF) maintained a strong capital position with a Basel III CET1 ratio of 14.1%, well above the requirement of 11.2%.

• The bank has introduced innovative solutions such as the Call Check feature to enhance security for clients and is actively supporting clients in transitioning to sustainable business models.

• Fee income increased by 6% year-to-date, surpassing the growth ambition of 3% to 5%, with contributions from all client units.

Negative Points

• The decision to postpone the assessment of a potential share buyback to Q2 2025 due to uncertainties related to Basel IV implementation and data remediation.

• Higher costs were reported due to a new collective labor agreement and additional hiring, impacting the overall expense structure.

• The Dutch economy faces potential risks from the worsening economic outlook in Germany and geopolitical uncertainties, which could impact growth.

• The bank's corporate loan book saw a decrease in asset-based finance volumes outside the Netherlands, reflecting a capital allocation assessment.

• Net interest income (NII) is expected to face challenges due to potential ECB rate cuts and the volatility of treasury results, which could impact future earnings.

Q & A Highlights

Q: On Basel IV, we are close to its implementation. Can you provide more precise numbers, and what has surprised you in the process? Also, could the 13.5% capital target change? A: We continue to use a rounded number for Basel IV as we complete our conversion. The process is delayed due to data remediation and model simplification. We maintain our 13.5% capital target for 2026, and any changes will be assessed in 2025.