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ABN Amro’s revenue beats estimates, however Ukraine battle considerations loom

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ABN AMRO emblem is seen on the headquarters in Amsterdam, Netherlands Might 14, 2019. REUTERS/Piroschka van de Wouw

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Might 18 (Reuters) – Dutch financial institution ABN Amro (ABNd.AS)on Wednesday reported first-quarter web revenue above market expectations helped by the reopening of Dutch society, however warned the battle in Ukraine may have an oblique impression on its enterprise.

Its web revenue was 295 million euros ($310.6 million) within the first three months of the 12 months, in opposition to analysts’ common estimate of 259 million euros in a company-provided ballot. In the identical interval final 12 months, the financial institution had posted a lack of 54 million euros after it needed to pay a hefty cash laundering high quality.

The financial institution now expects full-year web curiosity earnings on the high finish of its 5.0-5.1 billion euro steerage vary earlier than “bottoming out” within the first half of 2023.

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Its quarterly web curiosity earnings was broadly in keeping with expectations at 1.31 billion euros, after being dented by decrease prepayment penalties and better hedging prices.

Prices have been additionally greater in comparison with final 12 months, partly resulting from an extra 50 million euro anti-money laundering provision.

The outcomes have been helped by the Netherlands dropping most coronavirus restrictions, which enabled ABN to partially offset a administration overlay taken for the potential oblique results of Russia’s invasion of Ukraine.

The group, one of many three dominant banks within the Netherlands, stated its web impairment cost was 62 million euros within the quarter, reflecting the weakened macroeconomic outlook and a possible impression from the battle.

“ABN AMRO’s direct publicity to Russia could be very restricted, however we count on potential second-order results to have an effect on our shoppers,” CEO Robert Swaak stated in a press release, citing greater power and meals costs, provide chain disruptions, sanctions and elevated cyber-security considerations.

The Dutch lender stated its direct publicity to Russia was round 45 million euros, partly associated to Russian shoppers’ property overseas and to short-term transactions. It has no direct publicity to Ukraine or Belarus.

($1 = 0.9498 euros)

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Reporting by Elena Vardon and Valentine Baldassari; modifying by Milla Nissi

Our Requirements: The Thomson Reuters Belief Ideas.

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