(Reuters) -Dutch lender ABN Amro on Wednesday said it expects net interest income to edge lower in 2025, saying the growth that helped fourth-quarter profit beat expectations was “largely temporary”.
ABN Amro, one of three dominant banks in the Netherlands, said net interest income rose 4% to 6.5 billion euros in 2024, above its target, mainly as a result of the more favourable interest rate environment.
But it said net interest income was expected to dip to between 6.2 billion and 6.4 billion euros ($6.42 billion and $6.63 billion) in 2025.
“The year saw further growth in our net interest income and fee income. With the Dutch mortgage market rebounding during 2024, we managed to increase our market share for new production (of loans) from 16% to 19%,” CEO Robert Swaak said in a statement.
The lender posted net profit of 397 million euros for the three months ended December 31. While that was 27% below the same period the year before, it was above analysts’ average forecast of 389 million euros.
Quarterly net interest income grew by 11% on the year to 1.67 billion euros.
The bank said costs remained at its yearly target of around 5.3 billion euros, and were expected to remain stable this year.
($1 = 0.9654 euros)
(Reporting by Mateusz Rabiega and Jakob Van Calster in Gdansk; Editing by Himani Sarkar and Kate Mayberry)
