ABN AMRO Q3 2023: Deposit Rates Catching Up, Results Still Solid

ABN AMRO Bank N.V. (ABN AMRO or the Bank) reported net income of EUR 759 million in Q3 2023, up 2% from Q3 2022 and down 13% sequentially. However, the return on average equity (ROE) was still strong at 13.6%. The main driver was net interest income (NII), which was up 20% year-on-year (YOY), but down 5% sequentially. This was partly offset by a decrease in other operating income YOY and an increase quarter-on-quarter (QOQ). Operating expenses declined 2% YOY, but were up 8% sequentially, also contributing to lower profits. Credit quality remained stable, leading to a release in loan loss provisions of EUR 21 million. Going forward, NII is expected to stabilise and could potentially benefit from the repricing of the replication portfolio and treasury results, while the shift towards higher yielding deposits is slowing.