Dutch lender ABN Amro on Wednesday reported third-quarter net profit well above market expectations, boosted by higher interest rates and growing loan books.
ABN Amro, one of the three largest banks in the Netherlands, posted a 2% increase in quarterly net profit to 759 million euros ($811 million), compared to 743 million a year earlier. Analysts had forecast a profit of 583 million in a poll compiled by the company.
“Demand for credit remains strong and both our mortgage and corporate loan books increased,” Chief Executive Officer Robert Swaak said in a statement.
However, the lender’s net interest income (NII), a key measure of earnings on loans excluding investment costs, was 5% lower than in the second quarter and 6% below analysts’ expectations, as that his investment margins were decreasing due to rising interest rates. savings accounts, he said.
Its NII stood at 1.53 billion euros in the third quarter, up 20% from a year earlier.
The bank also cut its expected expenses for 2023 to a range between 5.1 billion and 5.2 billion euros, compared to a previous forecast of 5.2 billion euros.
The banking sector has been one of the main beneficiaries of rising interest rates over the past two years, but central banks appear to be at the end of this cycle of monetary tightening.
