AAVMY - ABN AMRO Bank: Q1 Earnings A Strong Start To 2024

2024-05-23 01:37:55 ET

Summary

• Dutch bank ABN AMRO reported a strong set of first quarter figures, with net income beating consensus by around 30%.
• While low credit impairment charges drove most of this, ABN AMRO delivered better than expected numbers on all key income statement lines.
• The bank's capital ratio was weaker than expected, though medium-term capital returns potential remains compelling assuming around €2 billion in annual net income.

Shares of Dutch bank ABN AMRO (AAVMY)(ABMRF) have done well since my last update in March, with a circa 11.5% total return for the ADSs translating to around 140bps of outperformance versus wider European financials ( EUFN ) in that time. This healthy performance brings total returns up to around 54%, or circa 21% annualized, since I opened on the bank with a 'Strong Buy' rating just over two years ago....

For further details see: