ABN AMRO Bank NV NLDR
ABN: XAMS (NLD)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| €79.00 | Pcyypb | Jbcnfhhxj |
ABN Amro Well Positioned in Oligopolistic Dutch Market
Business Strategy and Outlook
After emerging from outright government ownership, ABN Amro is one of the simplest banks in Europe. It is essentially a retail and commercial bank with limited capital markets activities. Its strong retail deposit base supported above-average profitability until negative interest rates started to bite. Having a lending book dominated by fixed-rate mortgages does not help either. The long-duration lending book forces ABN Amro to use more expensive long-term funding in order to manage liquidity risk, which then compounds margin pressure in a declining interest-rate environment.