Dutch bank ABN AMRO releases its financial results for the third quarter of 2022. 

Despite the increasing challenges, this week ABN AMRO reported a net profit of €743 million ($746 million), reflecting a strong recovery in deposit margins supported by a book profit on disposals and low impairments.

The firm also reported a return on equity of 13.9 per cent, supported by a book profit on disposals and low impairments. NII, excluding incidentals, bottomed out as deposit margins continued to improve in the higher interest rate environment, the firm said. It now expects NII to be around €5.3 billion for the full year (excluding incidentals). 

Fee income increased by 7 per cent, compared with Q3 2021, driven by higher payment volumes, pricing and strong results at clearing. Net new assets at wealth management, excluding custody assets, increased by €1 billion, the firm continued. 

Costs in the third quarter came down by 2 per cent (excluding incidentals and regulatory levies) compared with Q2 due to lower staff costs. It expects full-year costs to be around €5.3 billion, excluding incidentals and additional costs for the new CLA.
 
Robert Swaak, CEO, said: “We maintained strong momentum in the third quarter as our mortgage and corporate loan books continued to grow. Our market share in mortgages improved further to19.1 per cent in Q3.” 

“We still face pressure on margins for mortgages and corporate loans due to a delay in passing on higher funding costs to clients,” he continued.

“After a strong post-Covid recovery in the Netherlands, economic growth is starting to slow down due to high inflation, especially owing to the sharp rise in energy prices, combined with higher interest rates,” he said. 

“The Dutch economy has strong fundamentals and the government is stepping in with support packages to ease the purchasing power shock. Uncertainty about economic developments remains high and we expect an economic slowdown. Although we are concerned about the outlook, we are well positioned to weather this environment and will continue to support our clients in these challenging times,” he added.