ABN AMRO is likely to benefit greatly from the sale of its head office

Photo: ANP

ABN AMRO probably made significantly more profit in the closing quarter of 2021 than a year earlier. The bank was able to profit from the sale of its head office. With regard to the figures that will be released on Wednesday morning, the main question is how much headwind the bank is still experiencing from developments such as the omikron wave, high inflation and disruptions at the companies that are customers of the bank.

ABN AMRO announced in December that it would transfer its head office to real estate investor Victory Group. The bank received 765 million euros for the building that it will continue to rent in its entirety until the renovation of a building in the Amsterdam Bijlmer is completed. The deal resulted in a book profit before tax of EUR 338 million. That windfall will probably boost the results considerably.

Due to the economic recovery, the bank has been doing better for some time. Analysts will especially want to know whether this trend has continued into the final months of 2021. Rival ING surprised last week with its figures publication by setting aside hundreds of million euros due to, among other things, the high inflation. ING said it would like to be well prepared, for example in case people suddenly become unable to pay the monthly payments of their mortgage.

The experts at ABN AMRO are also keen on possible news about issues from the past that continue to haunt the bank. Last summer, for example, it came to light that ABN AMRO is once again following the Public Prosecution Service. Justice had designated the bank as a suspect in an investigation into the recovery of dividend tax by a third party. In addition, ABN AMRO, like other banks, has to dig up a lot of money to compensate customers who have paid too high an interest on a loan in the past. ABN AMRO recently announced that it would allocate 90 million euros extra for this.

ABN AMRO is likely to benefit greatly from the sale of its head office
Source link ABN AMRO is likely to benefit greatly from the sale of its head office

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