ABN Amro Profit Misses on Higher Provisions, Pledges Buyback

ABN Amro has been stepping up acquisitions within its core market of northwest Europe, including the purchase of German wealth manager Hauck Aufhäuser Lampe AG and NIBC Bank. ABN Amro Bank NV reported fourth-quarter profit that missed analyst expectations on higher than expected expenses and provisions for bad loans. The Dutch lender also announced €500 million ($596 million) in shareholder payouts. Net income was €410 million in the three months through December, compared with analyst expectations of €497.4 million on average in a Bloomberg survey. The capital distribution plan is split equally between cash dividends and a share buyback program, the bank said in a statement on Wednesday in Amsterdam. ABN Amro is in the midst of a shake up as Chief Executive Officer Marguerite Berard has vowed to boost its returns and ability to compete. She is cutting a net 5,200 jobs by 2028 compared to 2024, selling a personal loan unit and plans to explore outsourcing its credit card business. Net interest income, or the difference between what the bank earns on loans and pays on deposits was unchanged in the quarter, while the bank set aside €70 million for bad loans, according to the statementBloomberg Terminal. Operating expenses amounted to €1.58 billion. ABN Amro has also been stepping up acquisitions within its core market of northwest Europe. The bank completed the purchase of German wealth manager Hauck Aufhäuser Lampe AG in July. In the fourth quarter, it agreed to buy NIBC Bank from Blackstone Inc. for about €960 million to grow in Dutch retail banking. The Amsterdam headquartered-bank pledged to increase its return on equity to at least 12% at its recent investor day and is targeting a cost to income ratio -- a measure of efficiency -- of below 55% in 2028. The restructuring moves come amid the sell down of the Dutch government's stake in the lender to about 20%, from 30.5% previously. The state, which bailed out ABN Amro after the 2008 financial crisis, remains its largest shareholder. During the quarter, ABN Amro completed a significant risk transfer with Blackstone tied to €2 billion in large corporate loans. The transaction was expected to cut the bank's risk-weighted assets by €1.6 billion, it had said. Asian equities climbed to a record and the dollar declined ahead of Wednesday's US jobs report after weak retail sales reinforced bets that the Federal Reserve will cut interest rates later this year. The MSCI Asia Pacific Index rose 1% to an all-time high, widening its year-to-date outperformance versus European and US equities. A gauge for emerging markets also climbed to a record. The momentum seemed set to carry over to Wall Street with futures contracts for the S&P 500 and the Nasdaq 100 indexes advancing. European shares were primed for a flat open. Treasury futures extended their gains after 10-year bond yields dropped to the lowest in about a month in the US session. There was no cash trading in Treasuries during the Asian day as Japan was closed for a holiday. Gold, which typically benefits when rates are lowered, rose 0.6% as money markets see slightly higher odds of three Fed cuts this year -- with two already fully priced in. The dollar weakened against all its Group-of-10 peers. Unexpectedly weak December retail sales on Tuesday pointed to softer consumer momentum as the year ended, reinforcing expectations the Fed may ease rates later this year. Attention now turns to the jobs report and inflation data later this week for more signals on the policy outlook, even as equities waver on concerns over heavy artificial-intelligence spending by technology firms. The jobs report "will be key," said Bret Kenwell at eToro. "A weak print could push sentiment further toward risk-off if growth worries start to build, but a solid print may ease some of those concerns." Economists predict a 65,000 rise in January payrolls. Such an outcome would be the best in four months. The unemployment rate is seen holding at 4.4%. There will be an annual revision to the jobs count -- which is expected to reveal a markdown in the year through March 2025. The swaps market has boosted its pricing of a third quarter-point rate cut this year, with two almost priced in by the September meeting. That's up from a week ago, with Tuesday's weaker-than-expected retail sales data adding to the dovish momentum shift. "There is probably a bit more interest in tonight's US payrolls report following mixed economic data recently," said Lorraine Tan, director of equity research at Morningstar Asia Ltd. "If numbers are subdued, it should lift expectations for a Fed rate cut." On Tuesday, the S&P 500 slipped 0.3% amid weakness in several tech shares, though the gauge remained near the record reached last month. In other corners of the market, silver rose over 2.2%, while Bitcoin fell more than 2% to trade around $67,000. Oil gained as tensions in the Middle East focused on Iran outweighed a US industry report that pointed to a big rise in stockpiles. The Bloomberg Dollar Spot Index fell 0.3%, a fourth consecutive day of declines amid concerns ahead of the release of the jobs data. Among G-10 currencies, the yen led the gains against the greenback, strengthening for a third day. Read more on markets: Booming Asian Markets Widen Their Lead Over US and Europe China's Years-Long Retreat From US Treasuries Flags Bigger Risks Bitcoin Whales Are Buying Again as Other Investors Retreat (1) Meanwhile, it's shaping up to be another blockbuster year for Asian markets. Most equity benchmarks in the region have risen in 2026, currencies have shown resilience against external pressures, and demand for credit has pushed spreads to near record lows. While it's still early days and Asia hasn't been immune to global volatility, the region has several forces working in its favor. AI is one such theme, as investors contend with billions of dollars in spending and the disruptions it's creating. On Wall Street, rising fears about AI keep pummeling the shares of companies at risk of being caught on the wrong side of it all, from small software companies to big wealth-management firms. The latest selloff erupted on Tuesday when a tax-strategy tool rolled out by a little-known startup, Altruist Corp., sent the shares of Charles Schwab Corp., Raymond James Financial Inc. and LPL Financial Holdings Inc. down by 7% or more. Last week's steep drop in software stocks on concern about competition from AI was likely overdone, according to Goldman Sachs Group Inc.'s chief executive officer. "I think the narrative over the last week has been a little bit too broad," said David Solomon. "There'll be winners and losers -- plenty of companies will pivot and do just fine." Corporate News: * Heineken NV will cut 5,000 to 6,000 jobs as the Dutch brewer contends with a slump in demand for alcohol. * Commerzbank AG lifted its guidance for profit this year as Chief Executive Officer Bettina Orlopp moves to show that her strategy of boosting profitability and payouts is sustainable. * Activist investor Ancora Holdings Group has built a position in Warner Bros. Discovery Inc., according to people familiar with the matter. * Ford Motor Co. expects profit to jump in 2026 after being saddled with a surprise tariff bill at the end of last year. * A slide in EssilorLuxottica SA shares has raised the stakes ahead of Wednesday's results from the Ray-Ban maker, signaling concern that margin pressures may blur a growth story amplified by smart glasses.Key Events This WeekFor a list, click hereBloomberg Terminal. Some of the main moves in markets: Stocks * S&P 500 futures rose 0.2% as of 6:51 a.m. London time * Nasdaq 100 futures rose 0.2% * The MSCI Asia Pacific Index rose 1% * Hong Kong's Hang Seng rose 0.3% * The Shanghai Composite rose 0.1% * Euro Stoxx 50 futures were little changed Currencies * The Bloomberg Dollar Spot Index fell 0.3% * The euro rose 0.2% to $1.1915 * The Japanese yen rose 0.8% to 153.13 per dollar * The offshore yuan was little changed at 6.9107 per dollar * The British pound rose 0.2% to $1.3669 Cryptocurrencies * Bitcoin fell 2.8% to $66,724.68 * Ether fell 3% to $1,948.31 Bonds * Australia's 10-year yield declined seven basis points to 4.76% Commodities * Spot gold rose 0.7% to $5,060.11 an ounce * West Texas Intermediate crude rose 0.7% to $64.42 a barrel This story was produced with the assistance of Bloomberg Automation.

ABN Amro Profit Misses on Higher Provisions, Pledges Buyback

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