- 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.
For further details see:
At 0.5x TBV, ABN AMRO Is Too Cheap