Skip to Content

ABN AMRO Bank NV NLDR ABN

Morningstar Rating
€15.62 +0.10 (0.64%)
View Full Chart
Unlock our analysis with Morningstar Investor

Company Report

ABN Amro: Hauck Aufhäuser Lampe Acquisition a Good Fit at a Fair Price

Narrow-moat ABN Amro announced the purchase of German private bank Hauck Aufhäuser Lampe on May 28. The purchase will strengthen ABN Amro's existing presence in the German wealth management market. We estimate the deal will add around 5% to ABN Amro's earnings, including synergies. We tend to view wealth management as a moaty business and HAL's mid-double-digit historical returns on equity suggest a competitive advantage. ABN Amro's revenue mix is heavily skewed to net interest income, which can be volatile and capital-intensive. The deal will lead to a modest increase in the contribution of stable, low-capital-intensity fee income to ABN Amro's revenue mix. ABN Amro will use some of its excess capital to fund the cash purchase price of EUR 672 million. The purchase price is roughly equal to HAL's tangible book value and around 10 times its presynergy earnings. If ABN Amro can deliver its targeted EUR 60 million of synergies, it would imply a 5 times price/earnings multiple. We think these are modest multiples for an acquisition that will immediately enhance profitability and is an excellent strategic fit.

Price vs Fair Value

ABN is trading within a range we consider fairly valued.
Price
€15.52
Fair Value
€84.00
Uncertainty
High
1-Star Price
€42.36
5-Star Price
€96.80
Economic Moat
Kbvfr
Capital Allocation
Vvhqrwzb

Bulls Say, Bears Say

Bulls

ABN Amro is one of the three leading banks in the oligopolistic Dutch banking sector.

Bears

ABN Amro relies on net interest income for the bulk of its revenue, making it even more sensitive to lower interest rates than the average European bank.

Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if ABN is a good fit for your portfolio.

News

Trading Information

Previous Close Price
€15.52
Day Range
€15.3715.62
52-Week Range
€11.8316.74
Bid/Ask
€15.56 / €15.62
Market Cap
€13.01 Bil
Volume/Avg
1.7 Mil / 3.7 Mil

Key Statistics

Price/Earnings (Normalized)
4.88
Price/Sales
1.52
Dividend Yield (Trailing)
9.73%
Dividend Yield (Forward)
9.73%
Total Yield
13.60%

Company Profile

ABN Amro Bank is a Dutch bank, and the Netherlands accounts for around 90% of its operating profit. Operationally, retail and commercial banking contributes the majority of its operating profit, while ABN Amro continues to reduce its exposure to corporate and investment banking. It views private banking as one of its key growth areas.
Sector
Financial Services
Industry
Banks - Diversified
Stock Style Box
Large Value
Total Number of Employees
4,496

Competitors

Valuation

Metric
ABN
KBC
ING
Price/Earnings (Normalized)
4.888.7717.30
Price/Book Value
0.581.211.00
Price/Sales
1.522.552.48
Price/Cash Flow
3.254.738.71
Price/Earnings
ABN
KBC
ING

Financial Strength

Metric
ABN
KBC
ING
Quick Ratio
Current Ratio
Interest Coverage
Quick Ratio
No chart available

Profitability

Metric
ABN
KBC
ING
Return on Assets (Normalized)
0.74%0.90%0.77%
Return on Equity (Normalized)
13.54%14.78%15.08%
Return on Invested Capital (Normalized)
Return on Assets
ABN
KBC
ING
See how this stock stacks up to its competitors with Morningstar Investor

Banks - Diversified Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
JPM
JPMorgan Chase & CoWmbwqqqlXjqt$568.9 Bil
BAC
Bank of America CorpVsqwszhypYtznk$310.5 Bil
WFC
Wells Fargo & CoMmdstwbjtJjcg$207.4 Bil
HSBC
HSBC Holdings PLC ADRJswbdzncZdypr$164.0 Bil
RY
Royal Bank of CanadaNpcmlqdsDyty$148.7 Bil
C
Citigroup IncLvwygzgGtk$119.1 Bil
MUFG
Mitsubishi UFJ Financial Group Inc ADRNrwggnbfGbnz$118.9 Bil
UBS
UBS Group AGSwvhscbgyLjmzqz$98.1 Bil
TD
The Toronto-Dominion BankWkppfbyjvVtn$96.7 Bil
SAN
Banco Santander SA ADRVgmSpqnklx$79.2 Bil

Sponsor Center