ABN AMRO Q1 2021: Putting AML-Related Uncertainty Behind

ABN AMRO Bank N.V. (ABN AMRO or the Bank) reported a net loss of EUR 54 million in Q1 2021 as the Bank paid EUR 480 million related to an ongoing Anti Money Laundering (AML) investigation that was previously disclosed. Excluding the settlement net profit would have been EUR 426 million. The Bank did not meet the threshold for the additional TLTRO III benefit for the first 12 months, but expressed confidence for the remaining 12 months. Core revenues (excluding the non-core Corporate & Institutional Banking (CIB) portfolio) remained stable year-on-year (YoY) as a decline in net interest income (NII) was offset by better results in other income, while operating expenses were adversely affected by the settlement and higher compliance costs. Loan loss provisions improved meaningfully YoY and added EUR 77 million to earnings, while the CIB non-core portfolio has been reduced by 61% since June 30, 2020. Capital ratios remained strong.