ABN AMRO Swung to 2Q Net Profit -- Update

By Sabela Ojea

 

ABN AMRO Bank NV reported Wednesday a swing to net profit for the second quarter of 2021 after booking a net impairment release.

The Dutch lender posted a net profit of 393 million euros ($460.7 million) compared with a loss of EUR5 million for the same period a year earlier and said that it is committed to resuming the payment of dividends at a ratio of 50% of net profit.

ABN AMRO booked an impairment release of EUR79 million for the period compared with an impairment charge of EUR703 million for the year-earlier period, marked by a recovery of the economy.

The lender's capital position was very strong, it said, closing the quarter with a fully loaded CET1 ratio--a measure of a bank's financial strength--of 18.3%.

The bank said it is well ahead of plan in the wind-down of its corporate and institutional banking noncore portfolio, which has been reduced by more than 80% since the year-earlier period, and that its mortgage portfolio grew. Its corporate loan book for the core bank remained stable, it said.

 

Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix




      

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