ABN Amro Reports Lower Q2 Profit Launches €250M Share Buyback

ABN Amro reported a slight decline in second-quarter profits to €606 million, down 6% from the previous year, primarily due to lower net interest income amid declining interest rates. The bank's mortgage portfolio grew by €1.8 billion to €160 billion, supporting revenue alongside a 6% rise in fees and commissions, particularly from payment services. Despite higher costs driven by increased staffing and wage inflation, ABN Amro has implemented stricter spending controls to curb expenses, although its cost-to-income ratio remains above peer levels. To return value to shareholders, the bank announced a €250 million share buyback program commencing in August and set an interim dividend of €0.54 per share, with payments scheduled for September. ABN Amro’s CEO indicated that the bank will reassess its capital position later in the year to consider additional buybacks, aligning with its capital management strategy. These measures underscore ABN Amro's focus on balancing growth, profitability, and shareholder returns amid a challenging interest rate environment.