Dutch lender ABN Amro's fourth-quarter profit beat expectations today, boosted by high interest rates and releases of credit impairments.
The bank reported an about 54% year-on-year rise in fourth-quarter net profit to €545m. That beat market expectations of €422m in a poll compiled by the company.
Net interest income, a key measure of earnings on loans minus deposit costs, fell to €1.50 billion in the quarter, from €1.56 billion a year earlier.
Analysts had expected net interest income of €1.49 billion.
The company said it expected 2024 net interest income to be broadly in line with the €6.3 billion reported for last year.
ABN Amro's CET1 ratio, a measure of capital strength for European banks, fell 0.9 percentage points to 14.3% as of December 31, against analysts' estimation of 14.7%.
The lender said costs in the final quarter of 2023 were higher due to "increased resources for data capabilities, further digitalisation of processes and sustainable finance regulation".
It expects those costs to remain elevated during 2024.
