ABN Amro Earnings: Ahead of Expectations, but Buyback Delay Is Disappointing

Narrow-moat ABN Amro reported a net profit of EUR 690 million for the third quarter of 2024, 12% lower than a year earlier, but 23% higher than company-compiled consensus. While the release of loan-loss provisions played a vital role in the earnings beat, revenue growth was also better than expected. ABN Amro has generated a return on equity of 11% for the first nine months of 2024, ahead of its 2026 target of 9%-10%. However, profitability currently benefits from ultralow loan-loss provisions and is arguably above through-the-cycle levels.