Dutch bank ABN Amro has today reported first-quarter net profit above market expectations helped by the reopening of Dutch society, but warned the war in Ukraine could have an indirect impact on its business.
The bank said its net profit came to €295m in the first three months of the year, compared to analysts' average estimate of €259m in a company-provided poll.
During the same time last year, the bank had posted a loss of €54m after it had to pay a hefty money laundering fine.
The bank now expects full-year net interest income at the top end of its €5-5.1 billion guidance range before "bottoming out" in the first half of 2023.
Its quarterly net interest income was broadly in line with expectations at €1.31 billion, after being dented by lower prepayment penalties and higher hedging costs.
Costs were also higher compared to last year, partly due to an additional €50m anti-money laundering provision.
The results were helped by the Netherlands dropping most coronavirus restrictions, which enabled ABN to partly offset a management overlay taken for the potential indirect effects of Russia's invasion of Ukraine.
The group is one of the three dominant banks in the Netherlands.
It said its net impairment charge was €62m in the quarter, reflecting the weakened macroeconomic outlook and a potential impact from the war.
"ABN AMRO's direct exposure to Russia is very limited, but we expect potential second-order effects to have an impact on our clients," CEO Robert Swaak said in a statement, citing higher energy and food prices, supply chain disruptions, sanctions and increased cyber-security concerns.
The Dutch lender said its direct exposure to Russia was around €45m, partly related to Russian clients' assets abroad and to short-term transactions. It has no direct exposure to Ukraine or Belarus.
