ABN Amro Q4 Net Profit Beats On Weaker Than Expected Impairments
ABN Amro On Wednesday it reported a sharp drop in fourth-quarter net income, but it exceeded analysts’ estimates as the Dutch bank suffered smaller-than-expected write-downs due to the coronavirus crisis, while saying it expected the recovery to continue in 2021.
ABN’s net profit of 54 million euros ($ 65.5 million) in the last three months of 2020 was 83% lower than in the previous year, but is above 35 million euros that analysts had predicted on average.
The largely state-owned lender, one of the three dominant banks in the Netherlands, said impairments on bad loans fell 30% to € 220m, adding that it expected which they continue to decrease in 2021.
“We are cautiously optimistic about the outlook for the bank,” Managing Director Robert Swaak said in a statement.
“We anticipate that the roll-out of the immunization program will facilitate a significant lifting of restrictions, quickly leading to a strong economic rebound in the second half of the year.”
Last year, ABN decided to end all of its international trade and commodity finance operations after a series of losses.
He said he has made good progress with the liquidation of the commercial investment bank, reducing its portfolio by 45% since the second quarter of last year.