ABN Amro’s quarterly profit beats estimates despite rising costs

ABN AMRO emblem is seen on the headquarters in Amsterdam, Netherlands Might 14, 2019. REUTERS/Piroschka van de Wouw

AMSTERDAM, Aug 10 (Reuters) – Dutch financial institution ABN Amro (ABNd.AS) beat analyst expectations on Wednesday with a leap of 21% in second-quarter web revenue to 475 million euros ($485 million), as the discharge of earlier impairments offset rising prices.

Analysts in a company-compiled ballot had predicted web revenue of 312 million euros for April-June, down from 393 million euros a 12 months in the past.

ABN’s earnings have been lifted by an financial restoration within the Netherlands, which stimulated demand for company and mortgage loans and improved the credit score high quality of current shoppers.

This mitigated an 8% improve in working bills, pushed by rising prices of anti-money laundering efforts and investments referring to regulatory adjustments.

Prices got here in greater than analysts’ estimates, whereas web curiosity revenue barely missed expectations because it dropped 3% to 1.27 billion euros.

Nonetheless, the lender stated it expects web curiosity revenue to backside out within the second half of the 12 months as rates of interest climb, resulting in a complete curiosity revenue of round 5.2 billion euros for the complete 12 months.

ABN, considered one of three dominant banks within the Netherlands, had beforehand guided for web curiosity revenue of round 5.1 billion euros.

ABN stated the European Central Financial institution had authorized a possible share buyback value 250 million euros, conditional on the potential sale of shares by the Dutch state, which nonetheless holds a 56% stake.

($1=0.9793 euros)

Reporting by Bart Meijer; Enhancing by Clarence Fernandez and Sherry Jacob-Phillips

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