ABN AMRO raises 2026 outlook after strong Q2

ABN AMRO Group NV lifted its 2026 financial outlook on Tuesday after reporting second-quarter earnings that exceeded market forecasts.

The Dutch bank revised its medium-term targets, citing stronger-than-anticipated revenue growth and improved cost efficiency in the first half of the year. ABN AMRO now expects its 2026 return on tangible equity to exceed 12%, up from a prior target of around 10%. The bank also raised its cost-income ratio guidance to below 60% for 2026, compared with a previous estimate of approximately 62%.

Chief Executive Robert Swaak attributed the upgraded outlook to resilient client activity across core markets and disciplined expense management. "The first half of 2025 has demonstrated the strength of our franchise," Swaak said in a statement. "We are confident in our ability to deliver sustainable value creation."

ABN AMRO reported Q2 net profit of €520 million, beating the €480 million consensus estimate compiled by Refinitiv. Net interest income rose 5% year-on-year to €1.8 billion, driven by higher lending volumes and improved deposit margins. The bank’s loan loss provisions remained stable at €120 million, reflecting controlled credit risk.

Analysts at ABN AMRO’s investor day noted that the bank’s corporate and retail franchises in the Netherlands and Belgium continued to outperform peers amid a challenging macroeconomic environment. The lender’s CET1 capital ratio stood at 15.2% at the end of June, providing a buffer for potential economic headwinds.

Shares in ABN AMRO were up 2.1% in early trading on Tuesday, outperforming the broader European banking sector, which was flat on the day.

The bank maintained its dividend policy, reaffirming a payout ratio of 40-50% of net profit, subject to regulatory approval.