By Mateusz Rabiega and Jakob Van Calster
(Reuters) -Dutch bank ABN Amro said on Wednesday it would buy back shares worth 250 million euros ($290 million) as its second-quarter net profit narrowly beat market expectations.
The buy back compares with analysts’ estimate that the lender would repurchase shares worth 517 million euros in 2025, according to a company-compiled consensus.
“In line with our current capital framework we will review our capital position in the fourth quarter to assess the potential room for further share buyback”, CEO Marguerite Bérard said in a statement.
In a note to clients, J.P. Morgan called the results mixed, pointing to a weak top line and a lower share buyback despite a stronger capital buffer.
Profit for the period came in at 606 million euro compared with the 583 million estimated on average by analysts polled by the lender. The performance was supported by lower than expected impairment charges.
Net interest income – a measure of earnings on loans minus deposit costs – fell 5% from a year earlier to 1.53 billion euros, narrowly missing expectations, as interest rates kept pressuring the bank’s main source of revenue.
At the end of the second quarter, ABN Amro’s common equity tier 1 (CET1) capital ratio, which reflects a bank’s ability to absorb losses without jeopardising solvency, stood at 14.8%, above their regulatory minimum of 11.2% set by the European Central Bank.
“The main catalyst remains the capital markets day in November and the stronger capital position should read positively for future capital return,” J.P. Morgan said, referring to the first time ABN’s new CEO will comprehensively address investors.
(Reporting by Mateusz Rabiega and Jakob Van Calster, editing by Milla Nissi-Prussak and Matt Scuffham)
