ABN Amro Q2 profit exceeds forecasts on higher fee income

ABN Amro reported second-quarter net profit that surpassed the highest analyst forecast, supported by a significant increase in fee income.

The Dutch bank said net profit rose to €512 million ($572 million) in the three months through June, up from €488 million a year earlier. The result exceeded the €450 million high estimate in a Bloomberg survey of eight analysts.

Fee income, excluding trading and other volatile items, climbed 16% year-on-year to €1.2 billion, outpacing revenue growth in its core lending and deposit businesses. Net interest income, a key measure of traditional banking profitability, edged up 2% to €2.1 billion, reflecting modest loan growth and stable net interest margins.

ABN Amro attributed the fee income surge to higher asset management and transaction banking revenue, as well as improved performance in its private banking division. The bank’s cost-to-income ratio improved to 58%, down from 60% in the same period last year, signaling efficiency gains.

Chief Executive Officer Robert Swaak highlighted the bank’s resilience amid a challenging macroeconomic environment, noting that the fee-driven growth underscored the success of its strategy to diversify revenue streams beyond traditional banking.

The bank maintained its interim dividend at €0.35 per share, unchanged from the prior year, and reaffirmed its full-year guidance for net profit to exceed €2 billion.