ABN Amro: Q2 2020 Loss Narrows, More Clarity on CIB Strategy
ABN Amro Bank N.V. (ABN Amro or the Bank) reported a net loss of EUR 5 million in Q2 2020, compared to a gain of EUR 693 million in Q2 2019, and following on from a loss of EUR 395 million in Q1 2020. The year-on-year (YoY) decline was due to lower revenues and higher loan loss provisions of EUR 703 million in this quarter, reflecting the impact of COVID-19. However, quarter-on-quarter (QoQ) operating income increased by 3% and provisions declined by EUR 403 million. The Bank also announced a strategic shift for its Corporate & Institutional Banking (CIB) business, which has reported outsized credit losses in 2020 to date. DBRS Morningstar is of the opinion that this should result in a lower risk profile for the Bank overall.
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