ABN Amro profit jumps on higher rates, may miss 2024 cost targets

Dutch slope ABN Amro bushed second-quarter nett net expectations with maturation of 83% connected Wednesday, but said it nary longer expects to scope its 4.7 cardinal euro ($5.16 billion) 2024 outgo redeeming people owed to rising ostentation and anti-money laundering (AML) measures.

"More effort than expected is required to guarantee that our ongoing AML activities are astatine a sustainable and capable level and conscionable regulatory requirements", CEO Robert Swaak said successful a statement.

Full-year costs for 2023 improved and are present expected astir 5.2 cardinal euros, the radical said, from 5.3 cardinal euros previously.

Largely state-owned ABN, 1 of 3 ascendant banks successful the Netherlands, has refocused its operations connected the Dutch marketplace successful caller years, cutting thousands of jobs successful the process.

The lender reported a nett net of 870 cardinal euros for the 3 months to June, beating a company-compiled canvass by analysts forecasting a nett net of 570 cardinal euros, up from 475 cardinal euros a twelvemonth before.

Rival ING Groep, the largest Dutch bank, past week besides reported a forecast-beating 83% leap successful second-quarter nett profit, arsenic higher involvement rates helped income from lending and fees grow, arsenic good arsenic debased indebtedness provisions.

ABN Amro's CET1 ratio, a measurement of superior spot for European banks, fell to 14.9% from 15.5% a twelvemonth ago.

The interim dividend has been acceptable astatine 0.62 euros per share, successful enactment with the group's policy.