After a significant loss earlier this year, ABN Amro made a profit again last quarter. In net terms, more than 300 million euros remained, according to the figures published by the bank. In the first half of the year, the total loss added up to 400 million euros.
Also, less money has been set aside in the straw jar for customers who can get into trouble and bills that may not be paid. That was 270 million euros in July, August and September. In the months before, that was much more: more than 700 million euros.
All in all, the bank expects to set aside around 2.5 billion euros in the straw pot this year. That is less than the 3 billion euros she assumed a quarter earlier, but the amount is still many times higher than before the corona crisis.
A further contribution to the profit was that the company sold the office in Paris and then rented it back. That yielded a net 181 million euros.
Concerned about new lockdown
In the meantime, CEO Robert Swaak is concerned about the future. “A partial lockdown started in the Netherlands in mid-October. We are therefore cautious about the outlook and concerned about the long-term impact on society.”
The bank is currently working on a new strategy. What this entails will become clear at the presentation on November 30.
Money laundering investigation
The Public Prosecution Service is still investigating the possible involvement of the bank in money laundering practices. The bank has previously set aside money in case costs arise, such as fines, for example. Last quarter, an additional 18 million euros was added, partly because of extra anti-money laundering costs in Belgium.
At the same time, the company has hired more people to fight fraud, money laundering and terrorist financing. 268 full-time jobs have been added in that corner. Altogether, there are now 3,400 full-time jobs at ABN Amro aimed at combating this type of crime in the bank’s relations.
Pay holidays
In recent times, the bank, like other banks, has given customers who have a loan or mortgage the opportunity to receive a deferment of payment if, for example, the corona crisis made it difficult for them to pay their bill.
In the past quarter, less than one in a hundred customers with a mortgage from the bank still used a so-called ‘payment holiday’, or payment holiday. Of the customers who use the scheme, about 80 out of 100 started making payments again after three months.
Last quarter, ABN Amro announced that the company will conduct business outside of Europe decreases, with hundreds of jobs disappearing. According to the notes to the figures presented today, the company is making “good initial progress” there.
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