Yahoo Finance

• Net Profit: EUR619 million.

• Return on Equity: Approximately 10%.

• Mortgage Portfolio Growth: Increased by EUR1.7 billion.

• Corporate Loans Growth: Increased by EUR900 million.

• Fee Growth: Up by 8% compared to Q1 2024.

• Underlying Costs: Decreased by 5% compared to Q4.

• CET1 Ratio: 14.7%.

• Net Interest Income Guidance: Expected between EUR6.2 billion and EUR6.4 billion for the year.

• Fee and Commission Income Growth: Increased by 1% compared to the last quarter.

• Underlying Costs Guidance: Expected to be between EUR5.3 billion and EUR5.4 billion for 2025.

• Impairments: EUR5 million booked in Q1.

• Cost of Risk Expectation: Below 15 to 20 basis points for 2025.

• Warning! GuruFocus has detected 6 Warning Sign with ABMRF.

Release Date: May 14, 2025

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 solid net profit of EUR619 million for Q1 2025, with a return on equity of around 10%.

• The bank's mortgage portfolio increased by EUR1.7 billion, and corporate loans grew by EUR900 million, indicating strong lending growth.

• Fee growth continued, with an 8% increase compared to Q1 2024, supported by contributions from all client units.

• The bank successfully transitioned to Basel IV, reporting a strong CET1 ratio of 14.7%.

• ABN AMRO Bank NV (ABMRF) was awarded the overall best European private bank, reflecting its commitment to excellence and innovation in wealth management.

Negative Points

• Net interest income decreased in Q1, largely due to normalization of treasury results and lower deposit margins.

• Consumer loans decreased due to repayments, less demand, and the phasing out of legacy products.

• The bank's net interest margin was under pressure, particularly in the mortgage segment, due to lower margins.

• There is uncertainty regarding corporate loan growth, with potential delays in investment decisions by clients.

• The bank faces challenges in maintaining cost discipline, with a focus on controlling insolent expenditures and external hiring.

Q & A Highlights

Q: Can you share your initial thoughts on growth opportunities and cost reductions for ABN AMRO, and any updates on capital levels and share buybacks? A: Marguerite Berard, CEO: We have a strong brand, client franchise, and committed teams. Our focus will be on achieving profitable growth, cost discipline, and capital management. We are conducting a strategic review and will share more at our Capital Market Day in November. Ferdinand Vaandrager, CFO: We submitted a proposal to the ECB for model simplification, which will bring stability to our capital position. We expect further improvements over time and will reassess our capital trajectory and share buyback potential in Q2.