ABN AMRO had a good second quarter thanks to mortgage lending. The outlook for the Dutch economy for the rest of the year is favorable, according to the bank.
ABN AMRO’s mortgage portfolio grew by 1.8 billion euros to 160 billion euros in April, May and June, the bank reports. The bank accounts for 18 percent of all new Dutch mortgages. Partly thanks to this growth, CEO Marguerite Bérard speaks of a “solid quarter”.
Net profit did fall, to 606 million euros. In the second quarter of 2024, this was 642 million euros. The bank is suffering from high costs. However, ABN AMRO speaks of “stable income”, reportedly because the bank has limited impact from geopolitical uncertainty. There is a great deal of uncertainty worldwide due to the trade war and the fight with import duties.
“The Dutch economy was resilient in the first half of the year, despite geopolitical developments and the fall of the cabinet,” the bank writes.
Due to the housing shortage in the Netherlands and higher wages, ABN AMRO already increased the expected increase in house prices from 7 to 8 percent at the beginning of July. According to ABN AMRO, the number of housing transactions is expected to increase by 12.5 percent.
Furthermore, the outlook for the Dutch economy for the rest of the year is favorable, according to the bank. “Employment continues to rise, wage growth continues to outpace inflation, there is prudent fiscal policy and households have healthy balance sheets.”