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ABN AMRO Bank (AAVMY)
OTHER OTC:AAVMY
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ABN AMRO Bank
(OTC:AAVMY)
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Rating:81Outperform
Price Target:―
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. SPDR S&P 500 ETF (SPY)
Market Cap
$27.15B
Dividend Yield4.56%
Average Volume (3M)920.00
Price to Earnings (P/E)11.0
Beta (1Y)0.51
Revenue Growth-10.32%
EPS Growth-10.24%
CountryUS
Employees21,976
SectorFinancial
Sector Strength70
IndustryBanks - Diversified
Share Statistics
EPS (TTM)0.82
Shares Outstanding603,960,200
10 Day Avg. Volume474
30 Day Avg. Volume920
Financial Highlights & Ratios
PEG Ratio-0.60
Price to Book (P/B)0.50
Price to Sales (P/S)0.67
P/FCF Ratio-1.17
Enterprise Value/Market Cap3.57
Enterprise Value/Revenue7.07
Enterprise Value/Gross Profit11.03
Enterprise Value/Ebitda28.98
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. provides various banking products and services to retail, private, and business clients in the Netherlands and internationally. It operates through three segments: Personal & Business Banking, Wealth Management, and Corporate Banking. The company provides savings and deposits products; labelled residential mortgage products under the Florius brands; and consumer loans under the Alpha Credit Nederland, Credivance, Defam, Moneyou, and ABN AMRO brands. It also issues, promotes, manages, and processes credit cards; provides revolving credit card facilities and pension schemes, as well as consumer credit and mortgages; and life and non-life insurance products. In addition, it offers asset-based solutions, including working capital solutions, equipment leases and loans, and vendor lease services; private banking and wealth-management-related services; and derivatives and equity clearing services. ABN AMRO Bank N.V. was incorporated in 2009 and is headquartered in Amsterdam, the Netherlands.
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 Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q3-2024)
| % Change Since: |
Next Earnings Date:Nov 12, 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.Q3-2024 Updates
Positive Updates
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.
Negative Updates
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.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
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.85
Very Positive
Balance Sheet
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.75
Positive
Cash Flow
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.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 13.72B | 19.50B | 8.78B | 10.15B | 7.64B | 5.61B |
| Gross Profit | 8.79B | 8.94B | 8.59B | 7.64B | 7.64B | 5.61B |
| EBITDA | 3.35B | 3.58B | 0.00 | 2.55B | 2.03B | 0.00 |
| Net Income | 2.31B | 2.40B | 2.70B | 1.87B | 1.23B | -45.00M |
Balance Sheet | ||||||
| Total Assets | 413.92B | 385.05B | 377.91B | 379.58B | 399.11B | 395.62B |
| Cash, Cash Equivalents and Short-Term Investments | 49.39B | 45.80B | 55.05B | 62.84B | 68.25B | 62.15B |
| Total Debt | 83.60B | 81.54B | 54.44B | 63.96B | 67.72B | 75.34B |
| Total Liabilities | 386.44B | 358.94B | 353.74B | 356.77B | 377.11B | 374.63B |
| Stockholders Equity | 27.48B | 26.11B | 24.17B | 22.81B | 21.99B | 20.99B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -11.25B | -9.32B | -8.33B | 9.40B | 45.09B |
| Operating Cash Flow | 0.00 | -10.79B | -7.82B | -8.14B | 9.60B | 45.31B |
| Investing Cash Flow | 0.00 | -4.81B | -1.72B | -239.00M | 3.86B | -2.48B |
| Financing Cash Flow | 0.00 | 6.16B | 2.01B | 2.95B | -7.38B | -9.84B |
ABN AMRO Bank Technical Analysis
Positive
32.63
Price Trends
29.93
Positive
28.09
Positive
22.99
Positive
Market Momentum
0.74
Negative
70.42
Negative
80.11
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 32.63 is above the 20-day moving average (MA) of 31.04, above the 50-day MA of 29.93, and above the 200-day MA of 22.99, indicating a bullish trend. The MACD of 0.74 indicates Negative momentum. The RSI at 70.42 is Negative, neither overbought nor oversold. The STOCH value of 80.11 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $1.74B | 8.30 | 21.21% | 4.31% | 2.65% | 16.06% | |
81 Outperform | $27.15B | 10.99 | 9.85% | 4.56% | -10.32% | -10.24% | |
78 Outperform | $72.40B | 9.63 | 9.83% | 2.08% | 16.06% | 64.31% | |
75 Outperform | $110.69B | 9.77 | 18.32% | 4.07% | 7.86% | 17.13% | |
74 Outperform | $59.21B | 9.55 | 13.80% | 4.33% | 10.03% | 29.51% | |
73 Outperform | $76.73B | 11.89 | 12.08% | 4.52% | 1.13% | -1.14% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
AAVMY
ABN AMRO Bank
32.63
16.26
99.33%
BBVA
Banco Bilbao
19.25
9.20
91.54%
BCS
Barclays
20.97
9.16
77.56%
ING
ING Groep
25.78
9.12
54.74%
NWG
NatWest Group
14.89
5.99
67.30%
NTB
Bank of NT Butterfield & Son
42.27
7.54
21.71%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.