ABN AMRO Bank N.V.
Interim Report and Quarterly Report
Second quarter 2024
About this report
Introduction
This Quarterly Report presents ABN AMRO's results for the second quarter of 2024, the interim report for 2024 and the Condensed Consolidated Interim Financial Statements for 2024. The report provides a quarterly business and financial review as well as risk, funding, liquidity and capital disclosures.
Presentation of information
The Condensed Consolidated Interim Financial Statements in this report have been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the European Union (EU) and have been reviewed by our external auditor. Some disclosures in the Risk, funding & capital section of this report are part of the Condensed Consolidated Interim Financial Statements and are labelled as 'Reviewed' in the respective tables or headings.
This report is presented in euros (EUR), which is ABN AMRO's functional and presentation currency, rounded to the nearest million (unless otherwise stated). All annual averages in this report are based on month-end figures. Management does not believe these month-end averages present trends that are materially different from those that would be presented by daily averages. Certain figures in this report may not tally exactly due to rounding. Furthermore, certain percentages in this document have been calculated using rounded figures.
To download this report or to obtain more information, please visit us at abnamro.com/ir or contact us at investorrelations@nl.abnamro.com. In addition to this report, ABN AMRO provides an analyst and investor call presentation, an investor presentation and a factsheet regarding the second-quarter 2024 results.
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ABN AMRO Bank Interim Report & Quarterly Report second quarter 2024 |
1 |
Introduction
Financial review
Results by segment
Risk, funding & capital
Interim Financial Statements 2024
Other information
Figures at a glance | Introduction | Executive Board Report
Figures at a glance
Introduction
Net profit/(loss)
(in EUR millions)
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1,000 |
870 |
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800 |
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759 |
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674 |
642 |
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545 |
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600 |
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400 |
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200 |
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Q2 23 |
Q3 23 |
Q4 23 |
Q1 24 |
Q2 24 |
Return on equity
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(in %) Target is 9-10% |
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20 |
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16.2 |
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16 |
13.6 |
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11.6 |
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12 |
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10.8 |
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9.5 |
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8 |
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4 |
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Q2 23 |
Q3 23 |
Q4 23 |
Q1 24 |
Q2 24 |
Earnings per share
(in EUR)
1.25
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1.00 |
0.98 |
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0.85 |
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0.76 |
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0.73 |
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0.75 |
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0.60 |
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0.50 |
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0.25 |
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Q2 23 |
Q3 23 |
Q4 23 |
Q1 24 |
Q2 24 |
Financial review
Results by
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Cost/income ratio |
Cost of risk |
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(in %) Target is circa 60% |
(in bps) |
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100 |
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5 |
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80 |
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71.6 |
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0 |
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0 |
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-1 |
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60 |
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55.5 |
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57.2 |
58.2 |
-5 |
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51.1 |
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-4 |
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40 |
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-10 |
-10 |
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20 |
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-15 |
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-13 |
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Q2 23 |
Q3 23 |
Q4 23 |
Q1 24 |
Q2 24 |
-20 |
Q2 23 |
Q3 23 |
Q4 23 |
Q1 24 |
Q2 24 |
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Net interest margin
(in bps)
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200 |
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160 |
159 |
154 |
152 |
162 |
162 |
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120 |
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80 |
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40 |
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Q2 23 |
Q3 23 |
Q4 23 |
Q1 24 |
Q2 24 |
segment
Risk, funding & capital
CET1 ratio (Basel III)
(end-of-period, in %)
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20 |
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16 |
14.9 |
15.0 |
14.3 |
13.8 |
13.8 |
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12 |
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8 |
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4 |
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Q2 23 |
Q3 23 |
Q4 23 |
Q1 24 |
Q2 24 |
CET1 ratio (Basel IV)
(end-of-period, in %) Target is 13.5%
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20 |
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16 |
16 |
16 |
15 |
14 |
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14 |
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12 |
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8 |
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4 |
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Q2 23 |
Q3 23 |
Q4 23 |
Q1 24 |
Q2 24 |
Leverage ratio (CRR2)
(end-of-period, in %)
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7.5 |
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6.0 |
5.2 |
5.3 |
5.2 |
5.3 |
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5.0 |
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4.5 |
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3.0 |
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1.5 |
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Q2 23 |
Q3 23 |
Q4 23 |
Q1 24 |
Q2 24 |
Interim Financial
All targets refer to our strategic targets for 2026.
For more information about net prot, return on equity, earnings per share, cost/income ratio, cost of risk and net interest margin, please refer to the Financial review section. For more information about CET1 ratio (Basel III and Basel IV) and leverage ratio, please refer to the Capital management section.
Statements 2024
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ABN AMRO Bank Interim Report & Quarterly Report second quarter 2024 |
2 |
Other information
Message from the CEO | Introduction | Executive Board Report
Message from the CEO
Q2 Key messages
- Continued strong results: Net profit of EUR 642 million and 10.8% return on equity, driven by improved net interest income and net impairment releases
- Good business momentum: Our mortgage loan book expanded by EUR 1.6 billion, maintaining our market leadership into Q2, while our corporate loan book grew by EUR 0.7 billion
- Improved net interest income outlook: Benefitting from continued favourable interest rate environment; guidance for 2024 has been adjusted upwards to above EUR 6.4 billion
- Costs remain under control: New collective labour agreement reached, starting 1 July 2024
- Solid credit quality: EUR 4 million in net impairment releases
- Strong capital position: Basel III CET1 ratio at 13.8% and Basel IV CET1 ratio around 14%. Interim dividend has been set at EUR 0.60 per share
- Acquisition of Hauck Aufhäuser Lampe: Expanding our wealth management and corporate banking activities in Northwest Europe
Introduction
Financial review
Results by segment
Message from the CEO
The second quarter marked another strong quarter for ABN AMRO, both with regard to our financial results and also in delivering better services and products, and supporting clients in their sustainability transition.
Our results continue to benefit from the good performance of the Dutch economy. Unemployment is still historically low and the labour market remains tight. Inflation is continuing its downward trend, leading the ECB to lower its deposit rate for the first time in years. Wages are rising and have now largely caught up with inflation. The combination of improved affordability due to higher wages and lower mortgage rates has led to a strong rebound of the Dutch housing market, with prices at new record levels. Transaction volumes have also risen by 8% compared with last year.
In this improving housing market ABN AMRO remained the market leader in new mortgage production this quarter. An increase in new clients and net growth of EUR 1.6 billion in the mortgage book resulted in a 20% market share in new mortgage production. Corporate Banking's focus on the transition themes new energies, digital and mobility in the Netherlands and Northwest Europe is continuing to pay off. The corporate loan book grew by EUR 0.7 billion, predominantly in these sectors.
Our financial results were strong during the second quarter. Net profit was EUR 642 million resulting in a return on equity of almost 11%. Net interest income was strong at EUR 1,608 million and we now expect full-year net interest income above EUR 6.4 billion, reflecting higher-for-longer-interest rates. I am pleased that we
have reached a new two-year collective labour agreement, starting 1 July. I believe it is a fair and comprehensive package that focuses on appreciation, prospects for the future and long-term employability. Although this puts some pressure on the cost base, we are keeping our cost guidance for the year at around EUR 5.3 billion.
The combination of a healthy macro environment and solid credit quality led to net impairment releases. Risk-weighted assets rose by EUR 2.2 billion, primarily reflecting business developments. Our capital position is strong, with a Basel III CET1 ratio of 13.8% and a Basel IV CET1 ratio of around 14%. In line with our dividend policy, the interim dividend has been set at EUR 0.60 per share, amounting to EUR 500 million. We are working to reduce uncertainties in our capital outlook as we make progress on our model reviews and continue to work on data remediation. Capital allocation and capital steering will become increasingly important, incorporating the effects of moving portfolios to less sophisticated approaches.
We are continuing our efforts to improve our client services and product offering. For Personal & Business Banking, we have been able to sustain the Net Promoter Score (NPS), following a strong improvement previous quarter. Within Corporate Banking the NPS increased in both Commercial Clients (+12) and Corporate & Institutional Banking (+13) compared with FY2023.
In this survey, clients highlighted that they appreciate our expertise, commitment, and the relationship they have with the bank. This quarter, we welcomed the
10 millionth active user of Tikkie, our successful app for payment requests. The recent acquisition of
Risk, funding & capital
Interim Financial Statements 2024
Other information
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ABN AMRO Bank Interim Report & Quarterly Report second quarter 2024 |
3 |
Message from the CEO | Introduction | Executive Board Report
Introduction
German private bank Hauck Aufhäuser Lampe will greatly increase our footprint in the German market, while the acquisition of neobroker Bux will broaden our product offering and digital product capabilities.
This quarter we continued to future-proof the bank. ABN AMRO GPT was launched for all our colleagues - a secure, compliant and in-house version of ChatGPT. This technology is being used, for example, to assist our developers in writing and documenting software code, and to help colleagues generate text and retrieve information from large documents. We are actively exploring the further possibilities of Generative AI as we believe these examples are only the beginning.
The asset volume of client loans with a sustainability component (including mortgages and corporate loans) and ESG & impact investments further increased in the last six months from 34% to 35%. This was mainly due to an increase in corporate lending in our transition themes new energies, digital and mobility. In 2022 we set a target to increase our commitment to renewables and other decarbonisation technologies to at least EUR 4 billion by 2025. We had already exceeded this
target by the end of last year and have set a new and more ambitious target for this commitment of EUR 10 billion by 2030. In addition, we have added decarbonisation targets for trucks and vans as part of our Net-Zero Banking Alliance ambition.
We look back on a successful quarter with a healthy profit and good progress on executing our strategy. There are also areas that require ongoing attention.
We have to keep focus on our efforts in data capabilities, digitalisation and regulation, while at the same time being mindful of the cost base. Last week it was announced that I will not be completing my second term as CEO,
in order to allow a timely handover to my successor. I remain fully committed to the bank and all its stakeholders until a suitable candidate has been found. Once again, I would like to thank our staff for their continued dedication to our clients and our bank. I am confident that with their high level of commitment we will continue to be successful.
Robert Swaak
CEO of ABN AMRO Bank N.V.
Financial review
Results by segment
Risk, funding & capital
Interim Financial Statements 2024
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ABN AMRO Bank Interim Report & Quarterly Report second quarter 2024 |
4 |
Other information
Update on our sustainability strategy | Introduction | Executive Board Report
Update on sustainability
Introduction
Preserving nature is part of our purpose 'Banking for better, for generations to come'. A stable climate, clean air and water, healthy soil and thriving flora and fauna are essential for human wellbeing and economic stability. Our biodiversity impact is mainly the result of our financing and investment activities and to decrease negative impact we need to support our clients in effectively addressing the main drivers of biodiversity loss. We aim to make a difference by better integrating biodiversity in decision-making and client interactions. We support the Kunming-Montreal Global Biodiversity Framework, expressing our commitment to using and expanding our influence as a bank to reduce negative impacts and play a role in halting and reversing biodiversity loss.
In line with our Net-Zero Banking Alliance commitment, we work closely with our clients in order to achieve our goal bringing our portfolio in line with a 1.5°C maximum global warming scenario and supporting the transition to a net zero economy by 2050. In the past months,
we further focused on client engagement and have started to use the transition readiness assessment tool. Meanwhile we remain focused on our net zero target for our own operations. In addition to the targets set for residential mortgages, commercial real estate, oil and gas upstream, power generation, shipping, inland shipping, agriculture and our discretionary portfolio management as part of the client assets portfolio,
we have now also set targets for trucks and vans. In total we now cover 67% of our total loans and advances and 21% of our total corporate loans.
With regard to trucks we have set a target for our exposure, which was EUR 353 million at the end of 2023. We are targeting a 25% reduction in emission intensity by 2030, bringing our emission intensity down from
81.5 gCO2/tkm to 61.1 gCO2/tkm. For vans we have set a target for our year-end 2023 exposure of EUR 93 million. We are targeting a 37% reduction in emission intensity compared to 2023, thus bringing our current emission intensity of 224.7 gCO2/vkm down to 141.0 gCO2/vkm by 2030. To achieve these 2030 targets, we depend on effective implementation of regulations in the Netherlands and in Europe, for example the facilitation of adequate charging infrastructures for battery electric vehicles across Europe. We encourage our clients to invest in carbon reduction solutions by providing funding for zero and low emission vehicles and informing them about subsidy opportunities for zero emission vehicles, as well as present and upcoming regulations impacting their business (e.g. urban zero emission zones).1
In 2022 we set the target of reducing our absolute financing to the upstream oil and gas sector by 22% by 2030. We are further refining our client engagement approach to support our clients on their transition pathway towards a more sustainable business model. We aim to incentivise our clients to reduce the emissions associated with their production activities, and we plan to implement robust policies on venting and flaring and reduce methane emissions to zero. In addition to decreasing our exposure to oil and gas production, we aim to set an operational emission intensity target for clients in our upstream and midstream portfolio.
We have updated our coal sustainability standard towards a commitment to phase out thermal coal by 2030. We will finance clients that are over 5% reliant on coal only if these clients have an externally communicated plan to phase-out of thermal coal for all assets by 2030 and a credible growth strategy for their renewable activities.
Financial review
Results by segment
Risk, funding & capital
Interim Financial Statements 2024
1 Please refer to Other information for a detailed methodology description for trucks and vans.
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ABN AMRO Bank Interim Report & Quarterly Report second quarter 2024 |
5 |
Other information
Results | Financial review | Executive Board Report
Financial review
This financial review includes a discussion and analysis of the results and sets out the financial condition of ABN AMRO.
Results
Operating results
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First half |
First half |
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(in millions) |
Q2 2024 |
Q2 2023 |
Change |
Q1 2024 |
Change |
|
2024 |
2023 |
Change |
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Net interest income |
1,608 |
1,622 |
-1% |
1,589 |
1% |
3,198 |
3,242 |
-1% |
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|
Net fee and commission income |
462 |
444 |
4% |
469 |
-1% |
931 |
889 |
5% |
|
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Other operating income |
100 |
157 |
-36% |
139 |
-28% |
|
239 |
235 |
2% |
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Operating income |
2,171 |
2,223 |
-2% |
2,197 |
-1% |
4,368 |
4,366 |
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Personnel expenses |
659 |
612 |
8% |
656 |
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1,315 |
1,218 |
8% |
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Other expenses |
604 |
525 |
15% |
600 |
1% |
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1,205 |
1,325 |
-9% |
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Operating expenses |
1,263 |
1,137 |
11% |
1,257 |
1% |
|
2,520 |
2,543 |
-1% |
|
Operating result |
908 |
1,086 |
-16% |
940 |
-3% |
1,848 |
1,823 |
1% |
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Impairment charges on financial instruments |
-4 |
-69 |
94% |
3 |
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|
-1 |
-55 |
98% |
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Profit/(loss) before taxation |
912 |
1,155 |
-21% |
937 |
-3% |
1,849 |
1,877 |
-1% |
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Income tax expense |
271 |
285 |
-5% |
263 |
3% |
534 |
485 |
10% |
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Profit/(loss) for the period |
642 |
870 |
-26% |
674 |
-5% |
1,316 |
1,393 |
-6% |
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Attributable to: |
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Owners of the parent company |
642 |
870 |
-26% |
674 |
-5% |
1,316 |
1,393 |
-6% |
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Other indicators |
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Net interest margin (NIM) (in bps) |
162 |
159 |
|
162 |
|
162 |
161 |
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Cost/income ratio |
58.2% |
51.1% |
|
57.2% |
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57.7% |
58.2% |
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Cost of risk (in bps)1 |
-4 |
-10 |
|
-1 |
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-3 |
-3 |
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Return on average equity2 |
10.8% |
16.2% |
|
11.6% |
|
11.2% |
12.9% |
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Dividend per share (in EUR)3 |
0.60 |
0.62 |
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|
0.60 |
0.62 |
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Earnings per share (in EUR)4, 5 |
0.73 |
0.98 |
|
0.76 |
|
1.48 |
1.54 |
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Client assets (end of period, in billions) |
358.1 |
312.6 |
|
347.1 |
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Risk-weighted assets (end of period, in billions) |
146.3 |
134.5 |
|
144.2 |
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Number of internal employees (end of period, in FTEs) |
21,047 |
20,153 |
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20,887 |
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Number of external employees (end of period, in FTEs) |
3,945 |
4,296 |
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3,931 |
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- Annualised impairment charges on loans and advances customers for the period divided by the average loans and advances customers (excluding at fair value through P&L) on the basis of gross carrying amount and excluding fair value adjustments from hedge accounting.
- Annualised profit/(loss) for the period, excluding payments attributable to AT1 capital securities and results attributable to non-controlling interests, divided by the average equity attributable to the owners of the company excluding AT1 capital securities.
- Interim/final dividend per share over the relevant period as declared/proposed by the company, subject to approval at the annual general meeting (AGM).
- Profit/(loss) for the period, excluding payments attributable to AT1 capital securities and results attributable to non-controlling interests, divided by the average outstanding and paid-up ordinary shares.
-
For Q2 2024, the average number of outstanding shares amounted to 835,811,973 (Q1 2024: 860,275,379; Q2 2023: 866,005,715). For the first half year 2024, the average
number of outstanding shares amounted to 848,043,676 (first half year 2023: 877,456,566).
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ABN AMRO Bank Interim Report & Quarterly Report second quarter 2024 |
6 |
Introduction
Financial review
Results by segment
Risk, funding & capital
Interim Financial Statements 2024
Other information
Results | Financial review | Executive Board Report
Large incidentals
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Q2 2024 |
Q1 2024 |
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Held for sale adjustment |
Positive revaluation DSB claim |
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In Q2 2024, the carrying value of assets held for sale was |
Q1 2024 included a positive revaluation of EUR 29 million for a |
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impaired to reflect the fair value less costs to sell. This has |
DSB claim, recorded in net interest income at Group Functions. |
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resulted in an impairment of EUR 24 million (including disposal |
Q2 2023 |
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cost) recorded in Share of result in equity accounted investments, |
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Provision for revolving consumer credit compensation |
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which is included in Other income within Wealth Management. |
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In Q2 2023, this provision was updated, resulting in a EUR 18 |
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million release under net interest income and a EUR 20 million |
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addition for handling costs under other expenses within Personal |
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& Business Banking. |
Introduction
Financial review
Second-quarter 2024 results
Net interest income (NII) amounted to EUR 1,608 million in Q2 2024 (Q2 2023: EUR 1,622 million). Excluding large incidentals, NII showed a slight increase of
EUR 4 million. Treasury results improved, but were partly offset by asset margin pressure.
The net interest margin amounted to 162bps in Q2 2024 (Q2 2023: 159bps), increasing by 3bps despite a slight decline in NII as average assets decreased relatively more than NII. In comparison with Q1 2024, NII increased by EUR 19 million, and by EUR 48 million excluding large incidentals. This increase was mainly attributable to improved deposit margins following stable high market rates and also reflected a release of part of the Euribor provision.
Net fee and commission income increased by
EUR 18 million to EUR 462 million in Q2 2024 (Q2 2023: EUR 444 million) reflecting increased transaction relating to volumes as well as prices, higher pricing for services and an increase in mortgage advisory fees (at Personal & Business Banking). Also, asset management fee income was higher due to positive market performance.
In comparison with Q1 2024, net fee and commission income showed a small decrease of EUR 7 million, mainly at Personal & Business Banking, which incurred higher fee expenses for ATM services due to seasonally larger transaction volumes, and somewhat lower capital market fee income after strong results in Q1 2024.
Other operating income was EUR 100 million in
Q2 2024 (Q2 2023: EUR 157 million). Excluding large incidentals, other operating income was EUR 33 million lower than in Q2 2023. The decline was mainly attributable to lower fair value revaluations on loans, and derecognition losses and lower results from equity participations at Corporate Banking. This was partly
offset by higher asset and liability management results at Treasury.
Compared with Q1 2024, other operating income, excluding large incidentals, was EUR 15 million lower. The decline was driven by derecognition losses and lower revaluations on loans, partly offset by higher asset and liability management results at Treasury.
Personnel expenses totalled EUR 659 million in Q2 2024 (Q2 2023: EUR 612 million). The EUR 47 million rise reflects a net increase in internal FTEs and a salary increase as part of the previous collective labour agreement (CLA).
Internal FTEs grew by 894 compared to Q2 2023, totalling 21,047 in Q2 2024. Compared with Q1, the number of FTEs increased by 160, mainly reflecting a rise in internal FTEs working on regulatory and data programmes at Group Functions, resulting in a EUR 3 million increase on personnel expenses.
Other expenses amounted to EUR 604 million in Q2 2024 (Q2 2023: EUR 525 million). Excluding large incidentals, other expenses increased by EUR 101 million compared with the previous year, largely due to higher regulatory levies as Q2 2023 included a partial release of contributions accrued. Excluding regulatory levies and large incidentals, other expenses increased by EUR 44 million, partly due to higher external staffing costs driven by activities related to regulatory and data programmes.
Compared with Q1 2024, the increase in other expenses was EUR 4 million. Higher IT costs and external staffing costs were partly offset by lower regulatory levies. The contribution to the Deposit Guarantee Scheme was lower as the target size of the fund had been reached.
Results by segment
Risk, funding & capital
Interim Financial Statements 2024
Other information
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ABN AMRO Bank Interim Report & Quarterly Report second quarter 2024 |
7 |
Results | Financial review | Executive Board Report
Introduction
Impairment charges included a release of EUR 4 million (Q2 2023: EUR 69 million release). Releases at Personal & Business Banking driven by a reduction in management overlays were almost fully offset by additions primarily from individually provisioned files.
Income tax expenses came to EUR 271 million in Q2 2024 (Q2 2023: EUR 285 million) while profit before tax amounted to EUR 912 million, resulting in an effective tax rate of 29.7%. This is higher than the Dutch corporate income tax rate of 25.8% and is largely explained
by non-deductible interest due to the Dutch "thin capitalisation" rules for banks.
Profit attributable to owners of the parent company amounted to EUR 642 million in Q2 2024 (Q2 2023: EUR 870 million). After deducting EUR 36 million for coupons attributable to AT1 instruments, this amount was EUR 606 million in Q2 2024 (Q2 2023:
EUR 847 million).
Risk weighted assets (RWA) increased by EUR 2.2 billion to EUR 146.3 billion at 30 June 2024 (31 March 2024: EUR 144.2 billion, 31 December 2023: EUR 140.2 billion) largely driven by credit risk RWA reflecting business developments.
First half-year 2024 results
ABN AMRO recorded a net profit of EUR 1.316 million in H1 2024 (H1 2023: EUR 1.393 million), reflecting lower loan impairment releases and higher taxes. Operating income and operating expenses were more or less flat.
Return on average equity for H1 2024 was 11.2%, compared with 12.9% in H1 2023.
Net interest income (NII) was EUR 3.198 million (H1 2023: EUR 3.242 million). Excluding large incidentals, NII declined by EUR 55 million, mainly as a result of lower margins on mortgages and consumer loans in combination with lower volumes in corporate loans and consumer loans. Mortgage margins were lower due to competitive market conditions and an increased share of NHG mortgages. Slightly higher deposit margins together with housing market developments and strong execution that resulted in mortgage book growth partly offset the decreasing drivers.
Net fee and commission income amounted to EUR 931 million, an increase of EUR 43 million compared with H1 2023. This increase was attributable to higher transaction volumes and increased payment package pricing (at Personal & Business Banking),
as well as higher asset management fee income, which benefitted from market performance.
Other operating income remained more or less stable and sightly increased by EUR 4 million to EUR 239 million (H1 2023: EUR 235 million). Excluding large incidentals, other operating income increased by EUR 28 million, mainly as asset and liability management results at Treasury improved significantly, partly offset by lower equity participations results at Corporate Banking.
Personnel expenses increased by EUR 97 million to EUR 1,315 million (H1 2023: EUR 1,218 million) as the number of internal FTEs grew by 894 (mainly FTEs involved in IT, data and regulatory programmes at Group Functions) and salaries increased as part of the previously agreed collective labour agreement (CLA).
Other expenses decreased by EUR 120 million to EUR 1.205 million (H1 2023: 1.325 million). Excluding large incidentals, other expenses decreased by
EUR 100 million, mainly due to lower regulatory levies as both the Single Resolution Fund and the Deposit Guarantee fund reached their targeted levels in 2024 and our contributions were therefore lower. Lower regulatory levies were partly offset by higher IT costs and external staffing costs, primarily for consultancy services.
Impairment releases of EUR 1 million were recorded in the first half of 2024 (H1 2023: EUR 55 million was released). Releases at Personal & Business Banking were almost fully offset by additions at Corporate Banking and Wealth Management. At Personal & Business Banking the releases were mainly driven by a reduction in management overlays followed by higher repayments and further improvements of days past due in home financing. Impairment charges at both Corporate Banking and Wealth Management were primarily driven by increases of individually provisioned files.
Income tax expenses amounted to EUR 534 million in H1 2024 (H1 2023: EUR 485 million), resulting in an effective tax rate of 28.9%. This is higher than the Dutch corporate income tax rate of 25.8% and is largely explained by non-deductible interest due to the Dutch "thin capitalisation" rules for banks.
Profit attributable to owners of the parent company amounted to EUR 1,316 million in H1 2024 (H1 2023: EUR 1,393 million). After deducting
EUR 62 million for coupons attributable to AT1 instruments, this amount was EUR 1,253 million in H1 2024 (H1 2023: EUR 1,347 million).
Financial review
Results by segment
Risk, funding & capital
Interim Financial Statements 2024
Other information
|
ABN AMRO Bank Interim Report & Quarterly Report second quarter 2024 |
8 |
Balance sheet | Financial review | Executive Board Report
Balance sheet
Condensed consolidated statement of financial position
|
(in millions) |
30 June 2024 |
31 March 2024 |
31 December 2023 |
|
Cash and balances at central banks |
38,085 |
45,623 |
53,656 |
|
Financial assets held for trading |
2,109 |
2,309 |
1,371 |
|
Derivatives |
4,576 |
4,347 |
4,403 |
|
Financial investments |
50,326 |
47,061 |
41,501 |
|
Securities financing |
34,993 |
32,575 |
21,503 |
|
Loans and advances banks |
3,279 |
3,525 |
2,324 |
|
Loans and advances customers |
251,513 |
252,498 |
245,935 |
|
Other |
8,522 |
9,709 |
7,218 |
|
Total assets |
393,404 |
397,647 |
377,909 |
|
Financial liabilities held for trading |
1,410 |
1,691 |
917 |
|
Derivatives |
2,628 |
2,994 |
2,856 |
|
Securities financing |
18,523 |
17,920 |
11,710 |
|
Due to banks |
5,286 |
8,187 |
5,352 |
|
Due to customers |
260,826 |
261,329 |
254,466 |
|
Issued debt |
67,241 |
65,855 |
66,227 |
|
Subordinated liabilities |
5,608 |
5,556 |
5,572 |
|
Other |
6,887 |
8,915 |
6,641 |
|
Total liabilities |
368,408 |
372,447 |
353,741 |
|
Equity attributable to the owners of the parent company |
24,993 |
25,197 |
24,165 |
|
Equity attributable to non-controlling interests |
3 |
3 |
3 |
|
Total equity |
24,995 |
25,200 |
24,168 |
|
Total liabilities and equity |
393,404 |
397,647 |
377,909 |
|
Committed credit facilities |
50,927 |
53,211 |
53,968 |
|
Guarantees and other commitments |
6,801 |
6,614 |
6,289 |
Introduction
Financial review
Results by segment
Risk, funding & capital
Main developments in total assets compared with 31 March 2024
Total assets came down by EUR 4.2 billion to
EUR 393.4 billion as a decrease in cash and balances at central banks and other assets was largely offset by an increase in financial investments and securities financing.
Cash and balances at central banks declined by EUR 7.5 billion to EUR 38.1 billion and included EUR 3.0 billion in TLTRO repayments.
Financial investments increased by EUR 3.3 billion, predominantly due to an increase in corporate debt securities at Treasury.
Securities financing showed an increase of
EUR 2.4 billion to EUR 35.0 billion on the back of a rise in reverse repurchase agreements and security borrowing transactions.
Loans and advances customers decreased by EUR 1.0 billion, mainly driven by lower professional lending and fair value adjustments for hedge accounting resulting from the sharp increase in long-terminterest rates this quarter, largely offset by higher client loan volumes.
Client loans increased by EUR 2.1 billion to
EUR 240.3 billion as at 30 June 2024. The increase was mainly attributable to mortgage portfolio growth of EUR 1.6 billion as new-production volumes went up this quarter, followed by a EUR 0.7 billion rise in corporate loans.
Loans to professional counterparties and other loans came down by EUR 2.5 billion due to lower volumes mainly at Clearing and Treasury after seasonally higher business activity in Q1.
Interim Financial Statements 2024
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ABN AMRO Bank Interim Report & Quarterly Report second quarter 2024 |
9 |
Other information
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Disclaimer
ABN Amro Bank NV published this content on 07 August 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 August 2024 05:03:42 UTC.