Finance
ABN Amro warns mortgage, wealth management margins under pressure
Published by Global Banking and Finance Review
Posted on October 15, 2025
1 min readLast updated: January 21, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on October 15, 2025
1 min readLast updated: January 21, 2026
ABN Amro warns of margin pressure in mortgage and wealth management due to rising house prices and promotional offerings.
(Reuters) -Dutch lender ABN Amro warned of pressure on margins at its mortgage and wealth management businesses in an update on Wednesday ahead of its third quarter earnings.
The bank also said that changes to its system for assessing mortgage risk would have a negative impact on its mortgage business.
Mortgage margins were under pressure last quarter due to rising house prices in the Netherlands, a trend that has continued. The price rises led to borrowers' mortgages being deemed less risky, making them less profitable for the bank because the interest rate the bank charges on them is lower.
Additionally, ABN said that promotional offerings on some wealth management products would continue to impact its margins in the coming period.
Shares in the bank were down 3% at 1030 GMT.
ABN also said its takeover of German private bank Hauck Aufhäuser Lampe (HAL) would have a 30 basis point negative impact on its core Tier 1 capital ratio, a key measure of bank capital.
ABN Amro will announce quarterly earnings on November 12th.
(Reporting by Jakob Van Calster; Editing by Matt Scuffham)
A mortgage is a loan specifically used to purchase real estate, where the property serves as collateral. Borrowers repay the loan over time, typically through monthly payments that include interest.
Wealth management is a comprehensive service that combines financial planning, investment management, and other financial services to manage an individual's or family's wealth.
A capital ratio is a financial metric that measures a bank's capital in relation to its risk-weighted assets, indicating its financial stability and ability to absorb losses.
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