ABN Amro lends more money to households and companies

This article was last updated on May 15, 2024

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ABN Amro lends more money to households and companies

ABN Amro’s profit increased in the past quarter. Bottom line, the bank made a profit of 674 million euros, still thanks to the higher interest rates, according to the quarterly figures. In the same period last year, the profit was 523 million euros.

The bank has lent more money to companies and to households for mortgages. In total, the bank earned almost 1.6 billion euros in interest income.

Rising house prices

The bank’s mortgage portfolio increased by 800 million euros. ABN Amro expects that house prices will continue to rise in the near future and that the number of mortgage applications will continue to increase.

“This also has to do with the fact that households are also able to take out mortgages,” says chairman Robert Shaak. “You see those first tentative indications of purchases from starters in particular, in which we also have a large share, coming through. This means that there is confidence to enter into that financing and that we can provide that financing in the right way. to offer.”

The bank says it currently has a market share of 19 percent in the mortgage market. They also see an increase in demand for mortgages to make housing more sustainable. Furthermore, the business loan portfolio increased by 300 million euros.

Interest rate reduction

The European Central Bank is expected to cut interest rates in the second half of this year. According to Shaak, the bank can absorb an interest rate cut well. “In addition, if interest rates fall, the mortgage market will probably improve further. That makes it attractive for young starters to buy houses and that is precisely a segment in which we are very well represented.”