ABN Amro is once again providing 500 million Euros to boost its share price. The company plans to buy back its own shares. The Dutch state benefits from this as the largest shareholder. It will receive approximately 280 million euros.
The bank made a profit of 1.9 billion euros last year, 50 percent more than in 2021. This is remarkable because in 2021 the group had a significant one-off chance to exceed 300 million euros through the sale of the headquarters.
Like many other banks, ABN Amro benefits from the increase in interest rates. The bank’s margins increase, leaving more money in the bank. Customer savings rates are growing more slowly than central bank rates. In March, ABN Amro raised the main interest rate to 0.5 percent.
state interest
According to Robert Swaak, ABN Amro’s senior CEO, it makes sense for shareholders to also benefit from better results. “We have enough capital, we can return so much we have to shareholders,” Swaak says.
In addition to the 280m euros given to the state, about 500m euros in dividends were paid to the state last year.
The Dutch government bailed out the bank 15 years ago when it was threatened with bankruptcy. The state still owns just over half of the shares.
Loss
The bailout cost the government billions of dollars, and according to the SAI, there is currently about $18 billion lost in the books. How much of this loss remains after the remaining shares are sold depends on the share price. It’s up 5 percent after ABN Amro news this morning, but it’s 20 percent lower than when it was launched in 2015.
Source: NOS
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
