ABN AMRO Bank (AAVMY) AI Stock Analysis

Compare

101 Followers

AAVMY Dividends

Top Page

ABN AMRO Bank

(OTC:AAVMY)

81Outperform

ABN AMRO Bank scores well due to strong financial performance, with particular strengths in profitability and revenue growth. The valuation is compelling, with a low P/E ratio and high dividend yield. Positive technical analysis supports this with upward momentum, though caution is advised due to overbought indicators. Earnings call insights further bolster the score, highlighting robust strategic execution despite some concerns over rising costs and delayed share buybacks.

ABN AMRO Bank (AAVMY) vs. S&P 500 (SPY)

Market Cap

$17.25B

Dividend Yield6.21%

Average Volume (3M)1.19K

Price to Earnings (P/E)7.0

Beta (1Y)0.63

Revenue Growth20.84%

EPS Growth6.15%

CountryUS

Employees21,976

SectorFinancial

Sector Strength76

IndustryBanks - Diversified

Share Statistics

EPS (TTM)3.10

Shares Outstanding560,163,900

10 Day Avg. Volume3,572

30 Day Avg. Volume1,190

Financial Highlights & Ratios

PEG Ratio0.84

Price to Book (P/B)N/A

Price to Sales (P/S)1.70

Price to Cash Flow (P/CF)4.50

P/FCF Ratio-3.80

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

ABN AMRO Bank Business Overview & Revenue Model

Company DescriptionABN AMRO Bank N.V. is a prominent Dutch financial institution headquartered in Amsterdam, Netherlands. It operates primarily in the banking sector, offering a wide range of financial products and services to individual, corporate, and institutional clients. The bank's core services include retail and commercial banking, private banking, asset management, and insurance products. With a strong presence in the Netherlands and a focus on sustainable banking practices, ABN AMRO aims to provide comprehensive financial solutions while fostering long-term client relationships.

How the Company Makes MoneyABN AMRO Bank generates revenue through various streams, primarily focusing on interest income from loans and advances to customers and businesses. The bank earns fees and commissions from its wide array of banking services, including asset management, payment processing, and advisory services. Additionally, it gains revenue from trading and investment activities, leveraging its expertise in financial markets. ABN AMRO's private banking and wealth management divisions also contribute significantly to its earnings by offering tailored financial solutions to high-net-worth individuals. Strategic partnerships and collaborations further enhance its service offerings and market reach, contributing to the bank's overall profitability.

ABN AMRO Bank Financial Statement Overview

Summary

ABN AMRO Bank showcases strong income statement performance with high profit margins and revenue growth. The balance sheet is stable but demonstrates moderate leverage, a common trait in the banking sector. The cash flow statement indicates cash management challenges, with a need for better alignment between income and cash flow generation. Overall, the company is financially secure but should focus on improving cash flow efficiency.

Income Statement

Very Positive

ABN AMRO Bank's income statement exhibits strong profitability and steady revenue growth. The gross profit margin for 2023 stands at 98.94%, indicating efficient cost management. The net profit margin improved to 30.73% in 2023, up from 23.98% in 2022, showcasing enhanced profitability. Revenue growth from 2022 to 2023 was 12.71%, which is a positive trend. However, the absence of EBITDA margin data limits a comprehensive margin analysis.

Balance Sheet

Positive

The balance sheet reflects a solid equity base with stockholders' equity of €24.17 billion. The debt-to-equity ratio of 2.97 indicates moderate leverage, typical for banking institutions. The return on equity (ROE) rose to 11.16% in 2023, suggesting effective utilization of equity. The equity ratio is 6.40%, reflecting a stable capital structure. Overall, the balance sheet remains robust, though leverage is a potential risk factor.

Cash Flow

Neutral

The cash flow statement reveals a challenging cash flow scenario with negative operating cash flow of -€9.03 billion and free cash flow of -€9.32 billion in 2023. The operating cash flow to net income ratio is -3.35, highlighting inefficiencies in converting income to cash. The free cash flow to net income ratio is -3.46, indicating potential cash management concerns. Improvement in cash flow management is necessary for sustained financial health.

TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Breakdown
Income Statement		Total Revenue
8.71B	8.68B	7.79B	7.34B	7.52B	8.42B
	Gross Profit
11.70B	8.59B	7.79B	7.34B	7.52B	8.42B
	EBIT
6.51B	3.63B	4.89B	1.83B	356.00M	2.68B
	EBITDA
29.00M	0.00	0.00	0.00	0.00	0.00
	Net Income Common Stockholders
2.62B	2.70B	1.87B	1.23B	-45.00M	2.05B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
38.14B	55.05B	60.87B	68.25B	62.15B	28.86B
	Total Assets
381.30B	377.91B	379.58B	399.11B	395.62B	375.05B
	Total Debt
90.59B	71.80B	63.96B	67.72B	75.34B	85.58B
	Net Debt
52.45B	-55.24B	1.13B	-531.00M	13.19B	56.72B
	Total Liabilities
359.94B	353.74B	356.77B	67.72B	75.34B	85.58B
	Stockholders Equity
21.36B	24.17B	22.81B	21.99B	20.99B	21.47B
Cash Flow		Free Cash Flow
332.00M	-9.32B	-8.33B	9.40B	45.09B	3.23B
	Operating Cash Flow
332.00M	-9.03B	-8.14B	9.60B	45.31B	3.62B
	Investing Cash Flow
0.00	-1.72B	-239.00M	3.86B	-2.48B	-3.26B
	Financing Cash Flow
0.00	3.22B	2.95B	-7.38B	-9.84B	-9.63B

ABN AMRO Bank Technical Analysis

Technical Analysis Sentiment

Positive

Last Price20.71

Price Trends

50DMA

19.88

Positive

100DMA

17.87

Positive

200DMA

17.35

Positive

Market Momentum

MACD

0.03

Negative

RSI

55.22

Neutral

STOCH

93.70

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AAVMY, the sentiment is Positive. The current price of 20.71 is above the 20-day moving average (MA) of 20.40, above the 50-day MA of 19.88, and above the 200-day MA of 17.35, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 55.22 is Neutral, neither overbought nor oversold. The STOCH value of 93.70 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AAVMY.

ABN AMRO Bank Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HSBC	81 Outperform	$171.96B	7.99	13.74%	6.29%	6.79%	8.57%
AAVMY	81 Outperform	$17.25B	7.05	10.87%	6.21%	20.84%	6.15%
RY	78 Outperform	$227.29B	13.08	14.39%	3.59%	11.51%	14.79%
Sector *	63 Neutral	$12.07B	9.35	8.15%	79.57%	12.85%	-5.13%

* Financial Sector Average

Performance Comparison

AAVMY

ABN AMRO Bank

20.71

4.98

31.66%

HSBC

HSBC Holdings

54.01

15.63

40.72%

TSE:RY

Royal Bank Of Canada

163.03

31.47

23.92%

ABN AMRO Bank Earnings Call Summary

Earnings Call Date: Feb 12, 2025 | % Change Since: 21.32% | Next Earnings Date: May 14, 2025

Earnings Call Sentiment Positive

The earnings call reflected strong financial performance and strategic execution with significant profit and revenue growth, especially in the mortgage and fee segments. However, concerns about rising costs, delays in share buyback decisions, and a cautious economic outlook were noted. The highlights outweigh the lowlights, indicating a positive overall sentiment.

Highlights

Strong Profit Growth

ABN AMRO reported a profit of EUR 690 million, driven by higher net interest income, higher fee income, and net impairment releases.

Mortgage Market Strength

The Dutch mortgage market rebounded strongly with applications up by 25%, and ABN AMRO's mortgage production rose by 50% compared to last year.

Fee Income Exceeds Expectations

Year-to-date fees increased by 6%, surpassing the growth ambition of 3% to 5%.

Capital Ratio Improvement

Basel III CET1 ratio increased to 14.1% and remains well above the requirement of 11.2%.

Innovative Solutions in Sustainability and Security

Introduced a private financing solution for biomethane plants and a 'Call Check' feature to enhance client security.

Lowlights

Higher Operating Costs

Operating expenses rose due to an increase in salary costs and further hiring, impacting the overall cost base.

Delay in Share Buyback Assessment

The assessment for a potential share buyback has been postponed to Q2 2025 due to uncertainties in the implementation of Basel IV and data remediation.

Impact of Economic Outlook

The worsening economic outlook in Germany and potential downside risks from geopolitical developments could impact the Dutch economy.

Challenges in Corporate Loan Book

Despite growth in transition themes, there were lower asset-based finance volumes outside the Netherlands.

Company Guidance

During the ABN AMRO Q3 2024 earnings call, the company reported a robust profit of EUR 690 million, attributing this success to increased net interest income, higher fee income, and net impairment releases. Despite anticipated cost increases due to a new collective labor agreement and additional hiring, ABN AMRO's Basel III CET1 ratio improved to 14.1%, with Basel IV CET1 remaining around 14%. The mortgage market demonstrated a strong performance, with the bank's production rising by 50%, contributing to a $1.6 billion increase in the mortgage portfolio. For the full year, net interest income is projected to exceed EUR 6.4 billion, despite potential rate sensitivity. The bank maintained its cost guidance at EUR 5.3 billion, anticipating a gradual normalization of impairments. However, the decision to postpone the assessment of a potential share buyback to Q2 2025 was made due to complexities with Basel IV implementation and data remediation efforts.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.