Dutch lender ABN AMRO’s retail banking arm has reported net profit of €303m for the first quarter of 2018, a 7% fall compared to €326m in the same period of the previous year.
The bank attributed the fall in net profit to lower income by several components including the transfer of clients to private banking.
Go deeper with GlobalData
The unit’s net interest income also dropped by 1% year-on-year from €866m to €855m, while total operating income dipped 2% to €976m from €960m in the second quarter of 2017.
Furthermore, the operating expenses rose by 1% from €543m to €551m in the first quarter of this year.
The retail banking arm’s cost/income ratio during the quarter stood at 57.4% as against 55.7% a year earlier.
Overall, the banking reported a profit of €595m for the first quarter of 2018, down 3% compared to €615m in the corresponding year ago period.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataCommenting on the results, ABN AMRO CEO Kees van Dijkhuizen said: “We saw a solid start to the year with net profit coming to EUR 595 million, reflecting a strong increase in our operating result, offset by high impairments.
“Net interest income remained strong, benefiting from loan growth, especially in Dutch SMEs and corporate loans.
“The underlying cost trend in Q1 continues to benefit from cost savings. Impairments were high this quarter due to provisions for specialised loans in a few specific sectors.”
