In This Article:
ABN AMRO reports net profit of EUR 523 million for Q1 2023
Highlights of the quarter
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Very good start to the year with a net profit of EUR 523 million and an ROE of 9.6% reflecting high NII and low risk costs, partly offset by seasonally high regulatory levies
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NII strong as deposit margins in all client units continued to improve in the higher interest rate environment
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Underlying costs 2.5% lower than in Q4, partly due to lower external staff costs in the first quarter
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Credit quality remains solid and impairments in Q1 were EUR 14 million
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Strong capital and liquidity position. Fully-loaded Basel III CET1 ratio of 15.0% and Basel IV CET1 ratio of around 16%. Second share buyback programme of EUR 500 million finalised in April
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Making progress in building a future-proof bank, strengthening our operational efficiency
Robert Swaak, CEO
In the first quarter, the Dutch economy continued to demonstrate resilience. The recent turmoil in financial markets was sparked by specific issues at certain banks. Banks in the eurozone were resilient, supported by high capital buffers and conservative liquidity management. Recent developments confirm our strategic choices, giving us a distinct profile and focus. We continue to benefit from our improved risk profile and focus on our licence to operate as regulatory and capital requirements for banks increase further. We are building a future-proof bank by strengthening operational efficiency as we continue to invest in our sustainable finance regulation capabilities, model landscape and data capabilities.
In the first quarter of 2023 we delivered a very strong performance, with a net profit of EUR 523 million. The resulting return on equity (ROE) was 9.6%. Net interest income (NII) was EUR 1,620 million, as deposit margins in all client units continued to improve in the higher interest rate environment. Fee income remained stable. Costs came down by 2.5% (excluding incidentals and regulatory levies) partly due to lower external staff costs in the first quarter. We expect full-year costs for 2023 to be around EUR5.3 billion as inflation and higher investments delay the impact of savings programmes.
Credit quality remains solid and impairments in Q1 were EUR 14 million, while prudent buffers remain in place. Risk-weighted assets increased by EUR 3.2 billion, mainly due to business developments, an adjustment in the application of the SME support factor and model updates as part of our ongoing review of models. Our capital position remains strong, with a fully-loaded Basel III CET1 ratio of 15.0% and a Basel IV CET1 ratio of around 16%. Our deposit and funding mix is stable and well diversified. At the beginning of April we finalised our second share buyback programme, which had been announced in February.