AAVMY - At 0.5x TBV ABN AMRO Is Too Cheap

• ABN AMRO is one of the better banks in the Eurozone, sporting an attractive deposit franchise due to the concentrated Dutch banking market.
• The bank is operating in a brutally tough interest rate environment, and net interest income ultimately makes up most of its top line. NII fell again in FY21.
• Its strategy for dealing with this should start to show some tangible progress in FY22, especially on expenses.
• The current valuation more than accounts for the decline in its profitability, and there is a significant upside over the next few years, especially if rates move higher.

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