ABN Amro lifts annual guidance as central bank rates drive growth

By Jakob Van Calster and Mateusz Rabiega

Aug 12 (Reuters) - ABN Amro lifted the guidance for its commercial net interest income after beating quarterly expectations on Wednesday, joining other major Benelux banks that have raised forecasts as higher central bank interest rates continue to support their profitability.

The Dutch bank's shares touched an all-time high in early trading, rising around 5% on Euronext.

ABN now expects a commercial NII of €6.8 billion ($7.8 billion) this year, up from the previous forecast of €6.4 billion and about €100 million above analyst consensus.

"The Dutch economy remained resilient, supported by healthy household spending and more positive consumer confidence ... with uncertainty remaining high and the full inflationary impact of the energy shock yet to play out, we expect another rate hike in September," CEO Marguerite Bérard said in a statement.

Quarterly profit grew almost 30% to €780 million, exceeding market expectations by more than €100 million, as recently acquired businesses boosted revenue and the bank cracked down on costs.

Sitting on a comfortable CET1 ratio of 15.9%, a key measure of a bank's capital strength, ABN is for now focused on ensuring the success of its already made acquisitions, rather than hunting for new targets, Bérard said in a press call.

NII, which accounted for around 70% of the bank's revenue, is largely dependent on mortgages in the Netherlands. Finance chief Ferdinand Vaandrager told journalists he expected a "moderation of the market" after two years of strong growth, but added he did not see any material impact on ABN's balance sheet as housing prices continue to rise.

Operational expenses too beat the market view as the lender's cost-to-income ratio fell to 53.7% by the end of June, from 61.5% a year earlier, already surpassing its 2028 target of below 55%.

The bank has long struggled with its operational efficiency. At her first capital markets day in November 2025, Bérard announced job cuts as she pledged to narrow the gap with European peers.

($1 = 0.8670 euros)

(Reporting by Jakob Van Calster and Mateusz Rabiega, editing by Matt Scuffham and Milla Nissi-Prussak)