ABN AMRO Bank NV
ABN: XAMS (NLD)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| &?# | LOCK|NW& | LOCK|&vHt!mv |
ABN Amro Is a Play in the Oligopolistic Dutch Banking Sector
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 did not help either. The long-duration lending book forces ABN Amro to use more expensive long-term funding to manage liquidity risk, which compounds margin pressure in a declining interest-rate environment.
