ABN AMRO Returns to Profit in Q3 2020 on Asset Gain and Lower Impairment Charges; CIB Non-Core Wind-Down Progressing
ABN AMRO Bank N.V. (ABN AMRO or the Bank) reported a net profit of EUR 301 million in Q3 2020, compared to a net loss of EUR 5 million in Q2 2020, and a net profit of EUR 558 million in Q3 2019. The Quarter-on-Quarter (QoQ) improvement was driven by a EUR 263 million capital gain on the sale of a Paris office and a significant decrease in credit impairment charges. This outweighed a sizeable increase in operating expenses due to elevated provisions for the wind-down of the non-core Corporate & Institutional Banking (CIB) portfolio. The Return on Average Equity in Q3 2020 was 5.6%, however, for the 9M 2020 the Bank reported a loss of EUR 99 million, compared to a profit of EUR 1.7 billion in 9M 2019, due to the mostly COVID-19 related impairment charges of EUR 2.1 billion taken to date.
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