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

Core Insights - ABN AMRO reported a net profit of EUR 410 million for Q4 2025, contributing to a full-year return on equity of 8.7% [10] - The bank's performance reflects progress in strategic priorities, particularly in portfolio management and risk-weighted asset optimization [2][12] Financial Performance - Net interest income (NII) increased by EUR 85 million to EUR 1,665 million in Q4, aligning with the full-year guidance of over EUR 6.3 billion [7] - Fee income rose by 14% to EUR 572 million in Q4, driven by Wealth Management and Corporate Banking [8] - Operating income for Q4 was EUR 2,259 million, a 1% increase from Q4 2024 [16] Cost Management - The bank aims to reduce its workforce by 5,200 full-time equivalents (FTEs) by 2028, with a reduction of 580 FTEs in Q4 2025 [9] - Total costs for Q4 amounted to EUR 1,575 million, with a full-year cost guidance of EUR 5.4–5.5 billion [11] Client and Market Developments - ABN AMRO's market share in Dutch residential mortgages increased to 21% in Q4, reflecting strong demand in the housing market [4] - Wealth Management client assets grew by EUR 5.1 billion to over EUR 283 billion, with core net new assets of EUR 1.9 billion [4] Strategic Initiatives - The bank opened a new branch in Ghent for wealth management clients and launched a pilot for a home sustainability upgrade product [5][6] - ABN AMRO plans to distribute an additional EUR 500 million in capital, including a proposed final dividend of EUR 0.70 per share [13] Risk and Capital Management - The CET1 ratio improved to 15.4%, supported by risk-weighted asset optimization [10] - The cost of risk remained low at 11 basis points in Q4, indicating solid credit quality [11]