By Leo Marchandon and Matteo Allievi
(Reuters) -Dutch lender ABN Amro on Wednesday raised its forecast for full-year web curiosity earnings (NII) to six.4 billion euros ($6.98 billion), after it beat second-quarter estimates, sending its shares 3% increased.
ABN Amro’s earlier forecast of 6.3 billion euros was consistent with 2023 ranges.
Dutch banking peer ING additionally lifted its 2024 outlook for whole earnings to greater than 22 billion euros after posting second-quarter web curiosity earnings above estimates final week.
ABN Amro beat estimates for second-quarter NII, benefiting from a “higher-for-longer” atmosphere for rates of interest, trailing among the euro zone’s largest banks.
“Our results continue to benefit from the good performance of the Dutch economy,” CEO Robert Swaak stated in a press release, pointing at a housing market rebound amid a rise in new mortgage shoppers.
The financial institution’s NII, a key measure of earnings on loans minus deposit prices, fell 1% within the second quarter to 1.61 billion euros year-on-year, however beat analysts’ forecast of 1.58 billion euros in a company-compiled ballot.
Web revenue was additionally above estimates at 642 million euros, however down 26% in comparison with final 12 months.
The corporate’s CET1 ratio, a measure of capital power for European banks that compares their core capital towards risk-weighted belongings, fell to 13.8% from one 12 months in the past, consistent with analysts’ estimates.
Earlier this month, ABN Amro reached a brand new two-year collective labour settlement which features a wage enhance, elevating its personnel bills to 659 million euros from 612 million one 12 months in the past.
Nevertheless, the financial institution stored its price steering for the 12 months at round 5.3 billion euros.
The lender stated it could distribute an interim dividend of 60 euro cents per share on Sept. 11.
The corporate introduced final week that CEO Robert Swaak would step down in 2025, with out saying a candidate for his alternative.
($1 = 0.9168 euros)
