ABN Amro Ups Annual Guidance Following Strong Second-Quarter Performance
ABN Amro Raises Guidance and Reports Strong Financial Results
Aug 12 (Reuters) - ABN Amro on Wednesday raised its guidance for commercial net interest income (NII) to €6.8 billion ($7.8 billion), up from €6.4 billion previously, as the bank beat market expectations across the board.
The Dutch lender's upgrade completes the suite of listed Benelux banks that have raised expectations for income from their core lending activities, as higher central bank interest rates continue to support banking profitability.
CEO Commentary and Economic Outlook
"Dutch economy remained resilient, supported by healthy household spending and more positive consumer confidence... with uncertainty remaining high and the full inflationary impact of the energy shock yet to play out, we expect another rate hike in September," CEO Marguerite Bérard said in a statement.
Quarterly Performance Highlights
Commercial net income for the quarter came in at €1.70 billion, compared with analyst's median forecast of €1.64 billion, according to a company-compiled consensus.
Cost Management and Efficiency Initiatives
Costs Outlook and Forecasts
COSTS OUTLOOK
The lender's cost-to-income ratio beat forecasts standing at 53.7% at the end of June, down from 61.5% a year earlier and better than ABN's 2028 target of below 55%.
Operational Efficiency and Job Cuts
The bank has struggled for years with its operational efficiency. At her first capital markets day in November 2025, Bérard announced job cuts as she pledged to narrow the gap with European peers.
Additional Information
($1 = 0.8670 euros)
(Reporting by Jakob Van Calster and Mateusz Rabiega)
