ABN AMRO Press Release

ABN AMRO reports EUR 607 million underlying net profit for Q3 2016, up 19% y-o-y - Seite 2

Building on our Q2 cost initiatives, we have identified further cost savings of EUR 0.4 billion. This will affect approximately another 1,500 FTEs. These savings come on top of the EUR 0.2 billion for the support and control activities (announced in Q2 2016) and the EUR 0.3 billion (on track) for TOPS 2020 and Retail Digitalisation. We have sharpened the cost/income target range from 56-60% by 2017 to 56-58% by 2020. As the impact of Basel IV is still unclear, we have decided to leave the targets for the CET1 ratio (11.5-13.5%), ROE (10-13%) and the dividend payout ratio (50% over 2017) unchanged for now. I am confident that our plans will enable us to deliver lasting value to our clients, now and in the future.'

Key figures and indicators  (in EUR millions)				Q3 2016	Q3 2015	Change	Q2 2016	Change	9M 2016	9M 2015	Change
Operating income				2,222	2,109	5%	2,201	1%	6,393	6,403	0%
Operating expenses				1,372	1,234	11%	1,260	9%	3,951	3,700	7%
Operating result				849	875	-3%	941	-10%	2,442	2,703	-10%
Impairment charges on loans and other receivables				23	94	-75%	54	-57%	79	381	-79%
Income tax expenses				220	272	-6%	225	-3%	620	670	-7%
Underlying profit/(loss) for the period1				607	509	19%	662	-8%	1,743	1,652	5%
Special items				-	-		-271		- 271	-
Reported profit/(loss) for the period				607	509	19%	391	55%	1,472	1,652	-11%
Underlying cost/income ratio				61.8%	58.5%		57.2%		61.8%	57.8%
Underlying return on average Equity				13.8%	12.7%		15.1%		13.4%	14.0%
Fully-loaded CET1 ratio				16.6%	14.8%		16.2%		16.6%	14.8%
1 Underlying results exclude special items which distort the underlying trend. A detailed explanation of special items is provided in the Additional financial information section.

ABN AMRO Group Quarterly Report third quarter 2016