ABN Amro announces 500 mln euro share buyback as Q4 profit beats forecasts

Dutch bank ABN Amro XS1301382500 said on Wednesday it would buy 500 million euros ($540 million) of its own shares in the first half of the year, as it reported better-than-expected fourth-quarter earnings helped by rising interest rates and lower impairments.

Net profit of the largely state-owned bank dropped to 354 million euros in the last three months of 2022, down from 552 million euros the year before - but much better than the 105 million euros analysts on average had predicted in a company-compiled poll.

"Our fourth quarter was a strong finish to a year in which we delivered a good financial result," CEO Robert Swaak said in a statement.

Rising rates pushed up net interest income 17% to 1.56 billion euros, while operating expenses at the bank fell 6% due to staff reductions.

Impairments were 74% lower than a year before at 32 million euros as economic growth in Europe held stronger than expected despite surging inflation.

Since its bailout by the Dutch state in 2008, ABN has refocused its operations and orientation on the Dutch market, cutting thousands of jobs in the process.

One of three dominant banks in the Netherlands, it was re-privatized in 2015, but the Dutch state still owns 56% of the shares and has sold none since September 2017.

The state will participate in the share buyback, which has been approved by the European Central Bank and will maintain its relative stake, ABN said.

($1 = 0.9316 euros)