Dutch lender ABN Amro Q3 results have shown a net profit of €76m, an increase of 12% compared to €68m a year ago. However, client assets were down €5.4bn.
The division’s operating profit before tax for the quarter ended 30 September 2018 was €95m, up 3% from €93m in the same period last year.
Compared to the previous year, the unit’s operating income rose 2% to €325m while operating expenses dipped 2% to €229m.
The unit’s net interest income increased 8% year-on-year to €182m. The rise was said to be driven by margin improvements in the Netherlands.
The cost/income ratio of the private banking arm at the end of September 2018 stood at 70.4%, versus 73% in the previous year.
Client assets at the end of September 2018 totalled €195.5bn, down €5.4bn from the previous quarter due to the impact of divestments.
Overall, the banking group posted a net profit of €725m for the third quarter of 2018, an increase of 8% from €673m in the corresponding quarter of 2017.
ABN Amro CEO Kees van Dijkhuizen said: “In the past years, we have invested in our client businesses, grown the loan book, addressed the cost base and prepared for Basel IV, while increasing the dividend pay-out to shareholders. More recently, we took further steps to improve the profitability of Corporate & Institutional Banking and the international activities of Private Banking.
“This has resulted in a good third quarter, with a net profit of EUR 725 million, an increase of 8% on Q3 2017. Net interest income was up 4% year-on-year on the back of a strong Dutch economy. Costs continued to benefit from cost-saving programmes, as evidenced by a lower cost/income ratio.”