ABN AMRO announces a net profit of 1.2 billion euros for the financial year 2021

ABN AMRO Reports net profit of USD 1.2bmillion for AF2021 and announces the share buyback

  • Q4 2021 report professionalyou of USD 552 million driven by strong growth in fee income of 15% compared with last year and supported by sales and sale-leaseback of our hread ohoffice
  • Continued economic recovery, corporate loan portfolio grown up more … than 4 billion euros
  • NII supported by qualification for Additional TLTRO reduction while pressure on the deposit margin persists
  • AF vshostcomplies with €5.3 billion adviceexcluding AML regulation, reflecting cost discipline
  • Solid capitalization, Basel III CET1 ratio of 16.3% and Basel IV CET1 of around 16%
  • Proposed final dividend of EUR 0.61 per share and beginning of USD 500 million share buyback program
  • CIB non-essential liquidation largely complete; continued strong credit quality with an annual cost of risk close to zero
  • Cost of risk through the cycle recalibrated at around 20 basis points, reflecting our improved risk profile

Robert Swaak, CEO, comments:

Like us began / A get out of the pandemic, 2021 has been an economic year recovery For the Netherlands. Application for business loans has been sustained in the fourth quarter and customer loans increased by 4.3 billion euros. The increase of our our mortgage market share of 14% to 16% in 2021 in a highly competitive market reflects the strong operational capabilities resulting from strategic investments in our infrastructure. The liquidation of CIB’s non-strategic portfolio is largely complete, well ahead of schedule, improve the bank’s risk profile. We resumed the payment of dividends and announcement anot inaugural share buyback program because we are committed to returning the capital to our shareholders.

Net profit in the fourth quarter was 552 million euros, reflecting strong commission income growth and proceeds from the sale and leaseback of our corporate office, as pressure on deposit margins persists. The resulting return on equity (ROE) for the fourth quarter was 10.8%. We paid our fees advice €5.3 billion for 2021, excluding AML regulation, reflecting our focus on cost discipline. OWe have recalibrated the cost of risk over the entire cycle to around 20 basis points. The financial results of 2021 were marked by the environment of low interest rates and low depreciations. The resulting ROE for 2021 was 5.8% (seven.3% excluding non-core CIB). Our capital remainss very solid, with a Basel III CET1 ratio full of 16.3% and a Basel IV CET1 ratio of around 16 years old%. In line with our capital framework, we are proposing a final dividend equivalent to EUR 0.61 per share. In addition, we announced a share buyback of EUR 500 million.

As a personal bank in the digital age we are committed to our customers on a digital first based, incorporation the client experience. Customers expect easy delivery in applications, completethere digital services and seamless self-service through only one channel. We offer expertise wWhen it matters, whether through tailor-made solutions, our sector specialistsor personal interaction using video bank. From Q3 2022 we will offer our full range of remote services, including without card cash withdrawals and possibility of digitally open a joint account. As a customers continue to go digital, we will any further good size our network of online agencies with customer behaviour. We are committed to digital inclusion and have so doubled the number of financial coaches available to clients who need support.

Key figures and indicators
(in millions of euros)
Q4 2021 Q4 2020 Change Q3 2021 Change AF 2021 AF 2020 Change
Operating result 2,284 1,800 27% 1,734 32% 7,597 7,916 -4%
Operating Expenses 1,433 1,401 2% 1,301 ten% 5,806 5,256 ten%
Operational results 851 400 113% 432 97% 1,791 2,660 -33%
Impairment charges on financial instruments 121 220 -45% -12 -46 2,303
Income tax expenses 177 126 40% 102 75% 604 401 50%
Profit/(loss) for the period 552 54 343 61% 1,234 -45
Cost/revenue ratio 62.8% 77.8% 75.1% 76.4% 66.4%
Average return on equity1 10.8% 0.7% 6.5% 5.8% -0.8%
CET1 ratio at full load 16.3% 17.7% 17.8% 16.3% 17.7%
  1. Based on profit for the period attributable to owners of the parent

This press release is issued by ABN AMRO Bank NV and contains inside information within the meaning of Article 7(1) to (4) of Regulation (EU) No 596/2014 (Market Abuse Regulation)

  • ABN AMRO reports net profit of 1.2 billion euros for the financial year 2021 and announces a share buyback

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