ABN Amro on Wednesday reported its second-quarter net profit nearly doubled from the previous year and raised its full-year forecast for net interest income. The Dutch bank attributed the results to the continuing effects of higher interest rates.
The Amsterdam-based financial group announced a net profit of 879 million euros ($965 million) for the three months ending June 30. This figure represents an 85% increase from the 475 million euros reported in the same quarter of 2022. The result exceeded analyst expectations, which had projected a net profit of approximately 760 million euros, according to a company-compiled consensus.
Driven by the strong quarterly performance, ABN Amro revised its guidance for full-year 2023 net interest income (NII), the difference between what the bank earns from loans and pays for deposits. The bank now expects NII to be around 6.3 billion euros for the year. Net interest income for the second quarter was 1.62 billion euros, up from 1.28 billion euros in the second quarter of the previous year.
“We have delivered a strong result for the second quarter, with a net profit of 879 million euros and a return on equity of 14.5%,” Chief Executive Officer Robert Swaak said in a statement accompanying the results.
In addition to the earnings report, the bank announced its intention to launch a new share buyback program. The program is valued at 500 million euros and is scheduled to begin after the completion of its current repurchase plan.
The bank’s financial filings also showed impairments, or funds set aside for loans that may not be repaid, totaled 42 million euros for the quarter. This compares with net impairments of 54 million euros in the second quarter of 2022.
Following the release of the earnings report and revised guidance, the market responded to the news. In early trading on Wednesday, shares in ABN Amro were up 2.7%, as reported by Reuters.
