AAVMY - ABN AMRO: On Track For An 8% RoE In 2024
- Limited Russia exposure helped ABN AMRO deliver an RoE of 5.4% in Q1 2022, offset by a 50M EUR extra AML provision.
- 500M EUR buyback completed in Q2 2022. I estimate tangible book should be around 22.7 EUR/share at the end of Q2 after operating results and cancellation of treasury shares.
- CET1 of 15.7% is still above the 15% threshold for buybacks. However, management seeks greater clarity on the economic and operational performance before announcing another tranche.
- Company is sticking to 4.7B EUR absolute cost target for 2024. If current forward rates materialize, an 8-10% RoE for 2024 is deemed achievable.
- ABN AMRO has an absolute +0.8% CET1 buffer compared to largest peer ING. On an MDA level, the buffer is even higher at 1.7%.
For further details see:
ABN AMRO: On Track For An 8% RoE In 2024