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ABN Amro profit almost doubles

ABN Amro profit almost doubles

(25 August 2015 – Netherlands) ABN Amro Group NV posted its most profitable quarter since it was reinvented in 2010, proving to have good timing as the Dutch lender prepares for its Initial Public Offering (IPO).

Underlying net income almost doubled to €600 million (A$942 million) in the second quarter, up from €322 million the year before.

Return on equity, a measure of profitability, increased to 15.3 percent for its main activities in the second quarter, up from 9.2 percent a year ago.

The company’s common equity Tier 1 ratio fell to 14 percent from 14.2 percent at the end of the first quarter.

ABN Amro chief executive Gerrit Zalm said in a statement on 21 August that the company will continue to focus on capital efficiency and further strengthen its capital position.

“Our performance, including our financial results, the outlook for the Dutch economy and the fact that preparations for the bank’s IPO are on track give us confidence in the future.”

Dutch Finance Minister Jeroen Dijsselbloem said in May that the government would proceed with plans to sell 20 percent to 30 percent of the bailed-out lender this year, in what could be the biggest financial IPO in Europe since the 2008 financial crisis.

The government estimates ABN Amro is worth €15 billion, meaning the state may recover as much as €4.5 billion of the more than €20 billion it spent to rescue the bank.

The Dutch parliament endorsed the IPO in June, when Dijsselbloem signalled the sale may slip into next year.

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