By Leo Marchandon and Matteo Allievi
(Reuters) -Dutch lender ABN Amro on Wednesday raised its forecast for full-year web curiosity earnings (NII) to six.4 billion euros ($6.98 billion), after it beat second-quarter estimates, sending its shares 3% greater.
ABN Amro’s earlier forecast of 6.3 billion euros was in keeping with 2023 ranges.
Dutch banking peer ING additionally lifted its 2024 outlook for complete earnings to greater than 22 billion euros after posting second-quarter web curiosity earnings above estimates final week.
ABN Amro beat estimates for second-quarter NII, benefiting from a “higher-for-longer” setting for rates of interest, trailing a number of the euro zone’s greatest banks.
“Our outcomes proceed to profit from the great efficiency of the Dutch economic system,” CEO Robert Swaak stated in an announcement, pointing at a housing market rebound amid a rise in new mortgage purchasers.
The financial institution’s NII, a key measure of earnings on loans minus deposit prices, fell 1% within the second quarter to 1.61 billion euros year-on-year, however beat analysts’ forecast of 1.58 billion euros in a company-compiled ballot.
Web revenue was additionally above estimates at 642 million euros, however down 26% in comparison with final 12 months.
The corporate’s CET1 ratio, a measure of capital power for European banks that compares their core capital in opposition to risk-weighted property, fell to 13.8% from one 12 months in the past, in keeping with analysts’ estimates.
Earlier this month, ABN Amro reached a brand new two-year collective labour settlement which features a wage improve, elevating its personnel bills to 659 million euros from 612 million one 12 months in the past.
Nevertheless, the financial institution stored its value steerage for the 12 months at round 5.3 billion euros.
The lender stated it might distribute an interim dividend of 60 euro cents per share on Sept. 11.
The corporate introduced final week that CEO Robert Swaak would step down in 2025, with out saying a candidate for his substitute.
($1 = 0.9168 euros)