ABN Amro booked net profit of €642 million in the second quarter of this year, down 26% on the same period in 2023.

Nevertheless, the bank said at the presentation of the results on Wednesday it expected to book full-year net interest income of above €6.4 billion, reflecting higher-for-longer-interest rates.

Higher staffing costs, driven by inflation and a 900-strong expansion in the workforce were partly behind the cost increases, the bank said.

On Tuesday Rabobank reported first half profit of €2.8 billion, up 11% on the same period in 2023, after keeping net income from interest on an even keel.

“But there are uncertainties,” chief financial officer Bas Brouwers told the Financieele Dagblad, pointing to geopolitical tensions around the globe and low investment demand from farming.

Rabobank too has boosted its workforce by some 900 over the period, due in part to investments in counter-money laundering research. The bank has been given an ultimatum by the Dutch central bank to get its house in order and is also being investigated by the public prosecution office for its failings.

Last week ING said it had closed the second quarter of the year with net profit of €1.78 billion, above analysts expectations but down 17% on the same period in 2023. The result was driven by “strong fee and resilient interest income”, chief executive Steven van Rijswijk said.

Interest rates

All three banks have been criticised for failing to pass on the benefits of higher interest rates to their customers in the form of better rates for savings.

In May, the Dutch consumer authority ACM said the interest rates Dutch banks are offering on savings are too low, and this is partly down to the lack of competition.

Most Dutch savers are with ABN Amro, ING and Rabobank and few consumers are switching their savings to other banks that offer higher rates, the ACM’s research found. As a result, the major banks “experience insufficient competitive pressure to increase their savings rates”.