Dutch bank ABN Amro said that it would resume dividend payments as an economic recovery in the Netherlands had helped a stronger-than-expected bounce in net profit.
Amsterdam-based ABN said net profit rose to 393 million euros ($460.48 million) in the second quarter. This is because of the coronavirus restrictions were eased and companies gradually resumed business.
Analysts in a company-compiled poll had predicted an average net profit of 266 million euros. And that is for the April-June period. Chief Executive Robert Swaak said that the demand for corporate loans in the Netherlands is still muted as strong government support continues, but it is showing signs of stabilizing and then the pipeline is improving. Largely state-owned ABN released 79 million euros of impairments made during this pandemic crisis. That partly offset a steep decline in net interest income as low rates continued to hurt its profit margins.
Net interest income fell 14% to 1.3 billion euros. ABN said that its capital position remained strong and that is allowing it to pay out suspended dividends over 2019 in October, and to remain committed to paying out 50% of its net profits to shareholders in the time to come.