-Dutch financial institution ABN Amro on Wednesday reported first-quarter internet revenue above market expectations helped by the reopening of Dutch society, however warned the struggle in Ukraine might have an oblique influence on its enterprise.
Its internet revenue was 295 million euros ($310.6 million) within the first three months of the 12 months, in opposition to analysts’ common estimate of 259 million euros in a company-provided ballot. In the identical interval final 12 months, the financial institution had posted a lack of 54 million euros after it needed to pay a hefty cash laundering effective.
The financial institution now expects full-year internet curiosity earnings on the high finish of its 5.0-5.1 billion euro steering vary earlier than “bottoming out” within the first half of 2023.
Its quarterly internet curiosity earnings was broadly consistent with expectations at 1.31 billion euros, after being dented by decrease prepayment penalties and better hedging prices.
Prices have been additionally larger in comparison with final 12 months, partly as a result of a further 50 million euro anti-money laundering provision.
The outcomes have been helped by the Netherlands dropping most coronavirus restrictions, which enabled ABN to partially offset a administration overlay taken for the potential oblique results of Russia’s invasion of Ukraine.
The group, one of many three dominant banks within the Netherlands, mentioned its internet impairment cost was 62 million euros within the quarter, reflecting the weakened macroeconomic outlook and a possible influence from the struggle.
“ABNAMRO‘s direct publicity to Russia could be very restricted, however we count on potential second-order results to have an effect on our purchasers,” CEO Robert Swaak mentioned in a press release, citing larger power and meals costs, provide chain disruptions, sanctions and elevated cyber-security issues.
The Dutch lender mentioned its direct publicity to Russia was round 45 million euros, partly associated to Russian purchasers’ belongings overseas and to short-term transactions. It has no direct publicity to Ukraine or Belarus.
($1 = 0.9498 euros)
Post a Comment