AMSTERDAM (Reuters) – ABN Amro said on Wednesday it was looking to buy back its shares, as the Dutch bank reported an unexpected 14% increase in third-quarter net profit helped by economic recovery and the easing of COVID-19 lockdowns.
ABN’s net profit of 343 million euros ($396.3 million) for the July-September period was much better than expected. Analysts in a company-compiled poll had predicted profit to fall on average to 147 million euros, from 301 million a year ago.
“Developments in the third quarter were encouraging,” Chief Executive Robert Swaak said.
“Demand for lending showed signs of recovery and both our mortgage book and corporate loan book grew.”
The largely state-owned lender resumed dividend payments last month and said it was now in a “constructive dialogue” with the Dutch central bank about the possibility to start buying back shares after the first quarter of next year.
ABN, one of three dominant banks in the Netherlands, was re-privatised six years ago after its bailout in the 2008 financial crisis, but the Dutch state still owns 56% of the shares and hasn’t sold any since September 2017.
($1=0.8655 euros)
(Reporting by Bart Meijer; Editing by Clarence Fernandez and Muralikumar Anantharaman)
