ABN AMRO substantially increased its profit in the third quarter. The bank succeeded, among other things, in keeping costs under control. The group also benefited from the strong Dutch economy.
Under the line, 725 million euros remained, 8 percent more than a year earlier. For each euro of income, ABN AMRO had to make just under 53 cents of costs. In the third quarter of 2017, that was still a small 57 cents.
“The costs continued to fall thanks to our cost-saving programs and credit facilities were lower than in the first two quarters,” says CEO Kees van Dijkhuizen.
According to him, the strength of the Dutch economy was mainly due to the further rise in interest income. They went up by 4 percent on an annual basis.
ABN AMRO announced an intervention at its investment bank division in early August. In doing so, 250 jobs will disappear. In order to improve profitability, for example, the group wants to focus less on the investment bank on the sectors whose revenues are extremely volatile.
The dividend that the shareholders can expect by 2018 will only be definitively decided upon with the annual figures. Over the first nine months of the year, ABN AMRO has already set aside 60 percent of the net profit for this.
According to Van Dijkhuizen, the bank made good progress with its financial targets for 2020. Thus, the capital buffer was further strengthened. The return on equity has also improved. During an investor day later this month, ABN AMRO will set out its tightened strategic priorities for the coming years.
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