ABN Amro profits surge in Q2, 2024 cost target “won’t be met”

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ABN Amro is the second of the three big Dutch banks to announce a surge in net profit in the second quarter of this year.

The bank, which is just under 50% owned by the state following its nationalisation in 2008, said on Wednesday it had booked earnings of €870 million in the second quarter of 2023, a rise of 87% on the same period in 2022. In the first quarter, net profit rose 77% to €523 million.

The bank also said that its cost targets for 2024 will not be met, as high inflation, client control issues, and shift of investments from 2023 have an impact. 

Financial services group ING said earlier this month it had booked net profit of almost €2.2 billion in the second quarter of 2023, as interest rates rose and operating costs fell. 

The Q2 earnings are up 83% on the same period last year and are well above analysts expectations. Total revenue reached €5.76 billion.

The big banks have come in for criticism for failing to increase interest on saving in line with market developments. 

ABN Amro is currently offering 2.25% rent to savers who agree to keeping the cash for a year but just 1.25% to people who want direct access to their money. ING is currently offering 1% on its Oranje savings account for savings of up to €10,000.

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