Strong F2024 for Dutch Banks After Last Year's Peak, but Mixed Trends

Morningstar DBRS has released a commentary discussing the FY2024 results of the three large Dutch Banks (ABN AMRO, Rabobank, ING Group).

Key highlights include:
-- Combined profits remained strong overall in 2024 but down from 2023 and reflected mixed trends across banks.
-- Revenue growth is more subdued as net interest income normalises but is supported by a strong rebound in fee income.
-- Operating expenses were up on inflation and higher wages despite lower regulatory costs.
-- Asset quality is resilient despite signs of deterioration. Cost of risk remains very low and below the through-the-cycle sector average.

"As expected, the three major Dutch banks reported strong 2024 profits, despite the mixed trends across the sector", said Arnaud Journois, Senior Vice President, European Financial Institution Ratings. "We expect Dutch banks' performance in 2025 to remain strong, albeit down from the very strong levels experienced in 2023 and 2024."