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1. Company Snapshot

1.a. Company Description

ABN AMRO Bank N.V. provides various banking products and services to retail, private, and business clients in the Netherlands and internationally.It operates through three segments: Personal & Business Banking, Wealth Management, and Corporate Banking.The company provides savings and deposits products; labelled residential mortgage products under the Florius brands; and consumer loans under the Alpha Credit Nederland, Credivance, Defam, Moneyou, and ABN AMRO brands.


It also issues, promotes, manages, and processes credit cards; provides revolving credit card facilities and pension schemes, as well as consumer credit and mortgages; and life and non-life insurance products.In addition, it offers asset-based solutions, including working capital solutions, equipment leases and loans, and vendor lease services; private banking and wealth-management-related services; and derivatives and equity clearing services.ABN AMRO Bank N.V. was incorporated in 2009 and is headquartered in Amsterdam, the Netherlands.

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1.b. Last Insights on ABN

ABN AMRO's recent momentum is driven by its solid Q4 2025 earnings, with a net profit of EUR 410 million, and a full-year return on equity of 8.7%. The bank's new mortgage production continued at a fast pace, while its credit quality remained robust, with a cost of risk at 11 basis points. Additionally, the bank's CET1 ratio rose to 15.4%, driven by RWA and portfolio optimization, and it announced an additional EUR 500 million capital distribution.

1.c. Company Highlights

2. ABN AMRO's Q4 2025 Results: Strong NII and Fee Income Drive Profitability

ABN AMRO's Q4 2025 results showed a net profit of EUR 410 million, supported by strong net interest income (NII) and fee income. The bank's earnings per share (EPS) came in at EUR 0.43, below analyst estimates of EUR 0.611. The bank's net interest income benefited from an elevated treasury result, and full-year NII ended in line with guidance. Client assets increased by around EUR 7 billion, driven by strong net new assets and market performance.

Publication Date: Feb -14

📋 Highlights
  • Net Profit Surpassing Expectations: ABN AMRO reported Q4 2025 net profit of EUR 410 million, driven by strong net interest income and fee income.
  • Mortgage Volume Growth: New mortgage production surged 21%, adding EUR 2.5 billion in volume, reflecting robust market share gains.
  • Client Asset Expansion: Total client assets rose by EUR 7 billion, fueled by net inflows and favorable market performance.
  • Cost Efficiency Delivered: Costs fell to the lower end of guidance, underscoring disciplined execution and operational control.
  • Capital Strength and Distributions: CET1 ratio climbed to 15.4% due to EUR 8 billion RWA reduction, while proposing EUR 500 million in shareholder returns.

Revenue Growth and Margin Analysis

The bank's revenue growth was driven by a strong performance in net interest income, with commercial NII expected to be around EUR 6.4 billion in 2026. The net interest margin (NIM) is expected to face some pressure from mortgage margins, but the bank's CFO, Ferdinand Vaandrager, noted that 70% of the inflow is either Dutch-guaranteed mortgages or low LTV, which have lower margins but higher ROE. Analysts estimate next year's revenue growth at 6.1%.

Capital Position and Distribution Policy

ABN AMRO made significant progress in optimizing its capital position, reducing risk-weighted assets (RWA) by close to EUR 8 billion. The bank's CET1 ratio rose to 15.4%, driven by the substantial RWA reduction. The bank proposes a final dividend of EUR 0.70 per share and announces EUR 500 million in additional distributions, split evenly between a cash dividend and a share buyback program. The payout ratio for 2025 is 87%, reflecting the bank's strong commitment to shareholder returns.

Valuation Metrics

ABN AMRO's current valuation metrics indicate a Price-to-Tangible Book Value (P/TBV) of around 1.01, suggesting that the bank is trading close to its book value. The Dividend Yield is 4.57%, indicating an attractive return for income investors. With a Net Interest Margin (NIM) expected to remain stable, the bank's profitability is likely to be maintained.

Outlook and Guidance

The bank expects commercial NII of around EUR 6.4 billion for 2026, with costs increasing to around EUR 5.6 billion. The bank's cost of risk is expected to remain supportive, with a slight increase in the recent quarter due to a limited number of corporate files. The asset quality dynamics are strong, with a solid performance and a progressive move towards the through-the-cycle cost of risk.

3. NewsRoom

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ABN AMRO Bank (AMS:ABN) Has Announced A Dividend Of €0.70

Feb -14

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ABN AMRO posts net profit of EUR 410 million in Q4 2025

Feb -11

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ABN AMRO appoints Michiel Lap as Chair and nominates Jean-Pierre Mustier as new member of its Supervisory Board

Jan -29

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3 European Dividend Stocks Yielding Up To 6%

Jan -06

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ABN AMRO announces significant risk transfer transaction with Blackstone

Dec -11

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European Dividend Stocks To Consider Now

Dec -01

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US Options Market Grapples With ‘Concentration Risk’ in Clearing

Nov -30

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ABN AMRO to sell Alfam to Rabobank

Nov -25

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.08%)

6. Segments

Personal and Business Banking

Expected Growth: 1.2%

The 1.2% growth in Personal and Business Banking at ABN AMRO Bank N.V. is driven by increasing demand for digital banking services, a growing SME market, and strategic partnerships. Additionally, the bank's focus on customer experience, innovative product offerings, and cost savings initiatives have contributed to this growth.

Corporate Banking

Expected Growth: 0.8%

ABN AMRO's Corporate Banking growth of 0.8% is driven by increasing demand for cash management and trade finance services, particularly in the energy and commodities sectors. Additionally, the bank's focus on sustainability and ESG initiatives has attracted environmentally conscious clients, contributing to modest growth.

Wealth Management

Expected Growth: 1.5%

ABN AMRO's Wealth Management growth is driven by increasing demand for investment products, expanding affluent client base, and strategic partnerships. The 1.5% growth rate is also attributed to the bank's digital transformation, enhancing customer experience and increasing assets under management. Additionally, the bank's focus on sustainable investing and ESG integration resonates with clients, contributing to the segment's growth.

Group Functions

Expected Growth: 0.5%

ABN AMRO's Group Functions segment growth of 0.5% is driven by increasing demand for digital transformation, cost savings initiatives, and investments in innovation. Additionally, the segment benefits from the bank's focus on sustainability and environmental, social, and governance (ESG) considerations, which attract socially responsible investors and customers.

7. Detailed Products

Private Banking

Personalized banking services for high net worth individuals, including investment advice, portfolio management, and wealth planning.

Retail Banking

Everyday banking services for individuals, including current and savings accounts, credit cards, loans, and mortgages.

Corporate Banking

Financial solutions for large corporations, including cash management, trade finance, and risk management.

Commercial Banking

Financial solutions for small and medium-sized enterprises, including lending, cash management, and trade finance.

Transaction Banking

Cash management and payment solutions for corporations, including account services, payment processing, and treasury management.

Markets

Financial markets services, including foreign exchange, commodities, and interest rate products.

Clearing

Post-trade services, including clearing, settlement, and custody services for financial institutions.

8. ABN AMRO Bank N.V.'s Porter Forces

Forces Ranking

Threat Of Substitutes

ABN AMRO Bank N.V. faces moderate threat from substitutes due to the presence of alternative financial institutions and digital payment platforms.

Bargaining Power Of Customers

ABN AMRO Bank N.V. has a large customer base, but customers have significant bargaining power due to the ease of switching to alternative banks and financial institutions.

Bargaining Power Of Suppliers

ABN AMRO Bank N.V. has a diverse supplier base, and suppliers have limited bargaining power due to the bank's large scale and negotiating power.

Threat Of New Entrants

ABN AMRO Bank N.V. operates in a highly regulated industry, and new entrants face significant barriers to entry, including high capital requirements and regulatory hurdles.

Intensity Of Rivalry

ABN AMRO Bank N.V. operates in a highly competitive industry, with many established players and intense competition for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 80.38%
Debt Cost 8.19%
Equity Weight 19.62%
Equity Cost 8.19%
WACC 8.19%
Leverage 409.63%

11. Quality Control: ABN AMRO Bank N.V. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Mapfre

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Value: 5.2

Growth: 6.4

Quality: 5.8

Yield: 7.5

Momentum: 10.0

Volatility: 8.7

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A-Score: 7.0/10

Value: 6.4

Growth: 6.0

Quality: 6.6

Yield: 7.5

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ABN AMRO Bank

A-Score: 6.7/10

Value: 5.0

Growth: 5.3

Quality: 4.6

Yield: 8.8

Momentum: 9.5

Volatility: 7.0

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BAWAG

A-Score: 6.7/10

Value: 3.2

Growth: 7.2

Quality: 5.8

Yield: 8.8

Momentum: 9.0

Volatility: 6.3

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VIG

A-Score: 6.4/10

Value: 5.2

Growth: 4.2

Quality: 5.0

Yield: 6.9

Momentum: 10.0

Volatility: 7.3

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EFG

A-Score: 6.3/10

Value: 4.4

Growth: 3.3

Quality: 5.1

Yield: 7.5

Momentum: 9.5

Volatility: 8.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

29.94$

Current Price

29.94$

Potential

-0.00%

Expected Cash-Flows