ABN AMRO Bank reported full-year 2024 net profit of €2.4 billion on Wednesday, with a return on equity of 10.1%.
In the fourth quarter alone, the bank earned net profit of €397 million, supported by net interest income of €1,668 million, which reflected the contribution of ABN AMRO's treasury operations alongside income from its core retail, private and commercial banking franchises, the bank said in a statement published on its website. The fourth-quarter result brought the cumulative full-year profit to €2.4 billion.
NET INTEREST INCOME
Fourth-quarter net interest income of €1,668 million came after the ECB had begun reducing its deposit facility rate from 4% in June 2024.
The bank guided that net interest income would fall to between €6.2 billion and €6.4 billion in 2025, from €6.5 billion in 2024.
CAPITAL STRENGTH AND DISTRIBUTION PLANS
ABN AMRO's Basel III CET1 ratio rose to 14.5% at year-end, and the bank proposed a final dividend of €0.75 per share. The bank did not announce a new share buyback and said it would provide an update on the outcome of its capital assessment when publishing its second-quarter results.
The Dutch government, which retains a stake in ABN AMRO as a legacy of the 2008 financial crisis nationalisation, has been gradually reducing its holding through a structured sell-down programme managed by NLFI, the foundation that holds the shares on the state's behalf. NLFI has been selling shares through pre-arranged trading plans, and in October 2024 announced a new plan to reduce the state's stake to about 30%.
Bank news that matters, every weekday.
Follow The Global Banker on LinkedIn